While the life annuity market was, until today, very behind, it is currently experiencing a strong rise. If sales were, for the moment, limited to between 5,000 to 8,000 per year, they are gradually increasing with greater communication carried out with interested people. Indeed, each owner has the possibility of selling their home to the person of their choice and this could be someone in their family. In this case, however, certain conditions must be respected and it remains essential to obtain proper information before taking any steps. Find out how to sell your house to a relative.
Thanks to the life annuity sale, you have the ability to receive an income while having the guarantee that your home will remain part of the family heritage. However, several tips can be given to you to succeed in your life annuity sale. So, even if the person to whom you transfer your property is part of your family, it is essential to meet the same conditions as if they were a foreign buyer. It is therefore advisable not to grant your property at too low a price and above all to ask for an annuity paid regularly so as not to be accused of disguised donation.
If the person to whom you wish to sell is one of your children, they will have to pay you a starting sum called the bouquet, as well as a defined life annuity, which you will receive on a regular basis. Please be aware, however, that the rest of your siblings have the capacity to request financial compensation, upon your death, during the inheritance. It is therefore preferable to discuss it in advance with all your children and above all to ensure that you obtain their respective agreement before setting up the process linked to the sale of your life annuity property.
As noted by the financial administration, relayed by Femme Actuelle, “life annuity consists of selling real estate to a third party in exchange for a periodic annuity (monthly, quarterly or annual)”. As with any real estate sale, an authentic deed of sale must be carried out by a notary.
In order for the life annuity to cease upon the death of the annuitant, the death must also be unforeseeable and the buyer must not have been aware of an illness from which the annuitant was suffering at the time of signing the deed of sale. In the event of death within 20 days following the signing of the deed of sale, “the event is considered foreseeable and the sale is not valid”.
The life annuity sale represents a relevant way of passing on part of your assets to a nephew, a cousin or any other member of your family. Upon your disappearance, the person who acquired the property in life annuity will therefore not be liable for inheritance tax: only payment of classic transfer taxes, amounting to between 7 and 8% of the notary fees, will be required. .
Finally, in the case of an occupied life annuity, you retain the usufruct or the right to use the property sold until your death. Otherwise, the notion of free life annuity means that, upon signing the sale, the buyer of your property can freely dispose of it to occupy it or rent it and thus collect the rent.