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Historique |
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An example of a life annuity operation
in Colombey-Les-Deux-Eglises.
Life Annuity: you only live once
Life annuities are situated about halfway between a game
of chance and a financial speculation. Is it a sort of macabre
bet, which necessarily leads to there being a winner and a
loser - hardly a recommendable idea? If we look at recent
history, it is possible to see that several important people
have endorsed the concept of a life annuity, and the concept
is not purely restricted to players of Russian roulette.
Among these famous people, it is worth mentioning General
De Gaulle, who acquired his property (La Boisserie) in Colombey-les-Deux-Eglises
from an old widow from the region (who subsequently died two
years after the contract was drawn up). Valéry Giscard
d’Estaing used a life annuity policy to buy his aunt’s
castle. Even John F. Kennedy, who owned a tidy sum, used this
scheme to carry out his investments.
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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.
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