LIFE ANNUITY SALE

In a life annuity sale is a good sale on payment of an annuity. Versions:

1. The life annuity sale freehold. Here the seller is doing does completely away from the property sold, subject to payment of a monthly (usually) or else periodic annuity. The annuity is usually payable monthly as a rent.The recipient of the annuity is not taxed on the annuity, considering the annuity is an arrangement to pay the price. Note that the recipient of the annuity would be taxed if the buyer tax subtracts the annuity. 2. The life annuity sale of the bare ownership. In this case, the seller reserves the usufruct (mostly to myself to be able to live in or to continue the lease if any). If there are multiple vendors (eg spouses) is usually determined that they have to the full enjoyment of the death of the surviving spouse.

opportunities that can be provided for an annuity:

- Maximum duration of the annuity
- lapse of the usufruct if leaving home is (in life annuity sale of bare ownership), with or without replacement of the usufruct in the payment of a monthly sum;
- any indexation of the annuity ;
- partial payment of a sum of money and the rest in annuity.

The life annuity sale is ideal technique for the elderly without heirs to create an opportunity to provide themselves with an extra (tax) pension while preserving the enjoyment of their familiar home. How do we determine the annuity amount at sales annuity?

Alternative, simplified and often used calculation:

In a life annuity sale for persons just under 70 (but also sometimes for older sellers) often work with a bunch of so-called advance of approximately ?? 50,000 and then annually until the survivor dies, paid an amount of 3% on the actual value of the property in the establishment of the annuity reduced by this bouquet ?? 50,000. If the annuity sellers continue living in the house, the monthly annuity reduced by an amount equal to the rental value of the property sold annuity.
 

Judiciary:

Although sales of annuity is a contract opportunity and does not qualify as a rule for destruction because of discrimination, an exception may exist where it is established that the seller would be disadvantaged in any hypothesis for more than 7/12. The seller bears the burden of proof thereof. (Court of Appeal of Antwerp 18/11/2003, RW 2006 to 2007, 965).

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