Lighting on a dismembered property: what to choose between the bouquet and the rent?

In the “big savings meeting” (capital / radio heritage), our experts respond to Claudette, confronted with a particular situation: an elderly person wishes to sell in life a property of which they have only usufruct, with the agreement of bare owners.

Capital video: life annuity: on a usufruct good how to share the bouquet and the rent?

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Each month, the “big savings meeting” (capital / radio heritage) answers your questions in the “your questions, our answers” sequence. Notaries, taxpieces, heritage advisers accompany you on all your financial issues. Today, Claudette questions us about the terms of a life annuity set up by a 96-year-old usufructuary, with the agreement of the two bare owners of the property.

The good being already dismembered-that is to say that full property is distributed between the usufructuary (which can live or perceive the rents) and the bare owners (often children)-, any sale requires the agreement of the three parties. The life annuity is possible, but it raises two questions: how to distribute the bouquet (the initial capital paid) and the life annuity?

A life annuity on a dismembered property, it is possible

“At 96, the annuity will be quite high, because life expectancy is short – which can complicate the search for a buyer”underlines Géraldine Métifux, wealth management advisor. As a reminder, in a sale sale, the price is generally divided between a bouquet (capital paid immediately) and an annuity paid until the seller’s death.

From a tax point of view, the situation is relatively simple: “Whether the price is paid in the form of a bouquet or a rent, there is no added value to pay if it is the main residence”explains Thomas Prud’homoz, associated notary at KL-Consign. “On the other hand, the annuity is taxable, while the bouquet is not”he specifies. In this case, it could therefore be preferable to favor a large bouquet, in order to immediately have liquidity to finance dependence, and to limit taxation. “At 96, the annuity would be imposed up to 30%, because considered as a pension for a fee”recalls Géraldine Métifux.

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