Different operations between bare ownership and life annuity

Even if bare ownership and life annuity allow you to sell your main residence in two stages, each alternative offers notable differences.

During a bare ownership sale, you retain the usufruct of your property and receive, in one go, a sum entitled “net seller capital”. As part of a life annuity, you transfer your property in return for a sum called a “bouquet” and a lifetime annuity.

Bare ownership or life annuity: a difference in the nature of the resources perceived

In the case of life annuity, the annuity received regularly by the seller increases and diversifies his income, improving his daily life. It also helps protect your loved ones and protect you against the hazards of life.

Thanks to a sale in bare ownership, the receipt of immediate capital offers greater flexibility. You can increase your quality of life and use this amount to finance more substantial projects for you or your loved ones such as work, new acquisitions, or donations.

Sell your home in bare ownership or life annuity serenely with Junot

From the careful study of your expectations to the transfer of ownership, our experts support you at every stage in the sale of your apartment. We strive to advise you on the solution best suited to your needs and the preservation of your interests.

 

Contact us for any personalized study request.

Life annuity or bare ownership: What solution is there for your situation?

The choice between the two options rests on three criteria: your financial needs, your time horizon for transferring ownership, and how you wish to continue using your property.

 

• Are you looking for a regular, supplementary income for life? → A life annuity sale is the right solution. The annuity guarantees a stable income, secured by a proven legal framework.

 

• Do you wish to allocate significant capital for a specific project? → A bare ownership sale is generally more relevant, offering a single, immediately available capital sum.

 

• Your priority is optimized wealth transfer » → both options offer opportunities, which should be weighed with the help of a specialized advisor.

 

Since every wealth situation is unique, only a personalized analysis can identify the most suitable solution.

Junot Viager Expertise at your service

Junot Viager has chosen to specialize exclusively in life annuity sales and bare ownership sales. This focus guarantees our clients in-depth knowledge of the legal, tax, and estate planning intricacies specific to each option.

Our support is based on:

 

• A free estate planning assessment, incorporating your personal and family objectives;
• A tailor-made structure of the transaction, choosing between a life annuity or bare ownership, with or without occupancy rights
• or free, adjustment of the initial payment and the annuity;
• A dedicated multidisciplinary team: expert advisors, specialized lawyers, and notary partners;
• Post-signing support, guaranteeing the seller's peace of mind over the long term.

 

This approach, deeply rooted in the DNA of Maison Junot, is primarily aimed at owners of exceptional properties who wish to enhance the value of their assets with complete discretion.

Schedule an appointment with an expert

Talk to an expert Junot Viager

Are you wondering which solution is best suited to your situation? Our experts will guide you through every step, from the initial consultation to the signing, with the absolute discretion that characterizes Maison Junot.

See the agency

To go further

Also, discover our feature Selling bare ownership: a solution for the future to delve deeper into the specific challenges of bare ownership in contemporary wealth management strategy.

Frequently Asked Questions about life annuity and bare ownership

Is a life annuity always occupied?

No. There are two types of life annuity. An occupied life annuity allows the seller to continue living in the property. A vacant life annuity vacates the property immediately upon signing, in exchange for a larger initial payment and a higher annuity.

 

What happens to the usufruct in bare ownership Upon the death of the seller?

The usufruct ends upon the death of the last selling usufructuary or their spouse in the case of a reversible division of ownership. The buyer then acquires full ownership of the property, without any formalities or additional inheritance tax.

 

Can a property sold as a life annuity be passed on?

The property itself is removed from the estate as soon as the contract is signed. However, the initial lump sum payment and the annuities received can be used to make partially tax-exempt gifts to relatives.

 

What are the tax implications of a life annuity and bare ownership?

A life annuity benefits from a tax allowance that depends on the annuitant's age at the time they begin receiving the annuity. The capital received from a sale of bare ownership is, in most cases, exempt as a primary residence. Our team will assist you in optimizing the tax implications of your transaction.

 

Is property tax payable in a life annuity sale with retained occupancy?

In a life annuity sale with retained occupancy, property tax is generally transferred to the buyer upon signing, unless otherwise stipulated in the contract. This represents significant and lasting savings for the seller.

To be contacted