What is the Life Annuity?

The term "life annuity" (le viager) comes from the word "viage" which means "lifetime" in old French.

A simple credit sale ...

But with a difference : the payments stop upon the death of the annuitant, and the debt is eliminated, regardless of the size and duration of the buyer's payments.

This type of contract is called an aleatory contract.

The annuitant's risk (defined by article 1964 of the Civil Code) does not depend on the life annuity contract itself. If he or she dies prematurely, it is not possible to say they are the injured party, as the seller would have died at the same time - life annuity or none.

A life annuity cannot be processed ... if the risk is reduced by a restrictive clause, or modified deceptively. In the cases listed below, the sale would not be that of a life annuity, but a simple credit sale, with all the legal and fiscal disadvantages this brings.

If within 20 days of signing the deed, the annuitant dies from an illness that he or she did not have when the deed was signed. If the price is too low. If the annuitant's death is expected very soon, and the buyer is aware that the annuitant is suffering from an incurable illness.