Several types of life annuity sales:
Occupied life annuity
Elderly people who own a property, occupy it and live in it until they die are called “Crédirentiers”.
There are several advantages, starting with the payment of a “Bouquet” (Capital) and then the payment of a Monthly Annuity for life, with savings on charges and taxes on the property. What’s more, payment of the annuity is guaranteed by a resolutory clause with a vendor’s lien.
Free life annuity
As above, the vendor or crédirentier receives a “Bouquet” and a guaranteed monthly annuity for life. In this case, the property can be sold unoccupied, and the life annuity is particularly well-suited to retirement homes, for example, where the annuity will cover all or part of the costs. Another advantage is that the annuity is likely to be higher than the rent, tax-free and, above all, without having to bear the risks of renting and co-ownership charges.
Finally, following the sale, it is possible to become the usufructuary of the property, which allows you to occupy the property, rent it out and collect the rent, still with a tax advantage. As a result, the sale of bare ownership provides tax-free capital.
Life annuities are legally and safely regulated.