{"id":35871,"date":"2021-04-21T04:06:00","date_gmt":"2021-04-21T04:06:00","guid":{"rendered":"https:\/\/wordpress.zozothemes.com\/igual\/?p=35871"},"modified":"2024-10-29T11:00:02","modified_gmt":"2024-10-29T11:00:02","slug":"lifetime-support-contract","status":"publish","type":"post","link":"https:\/\/aktodorovic.rs\/sr\/lifetime-support-contract\/","title":{"rendered":"Lifetime Support Contract"},"content":{"rendered":"
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What is a Lifetime Support Contract?<\/strong>
A lifetime support contract is one of the most common inheritance-related agreements in legal practice. In this contract, one party (the provider) commits to caring for, supporting, and maintaining another party (the beneficiary) until the end of their life. In return, the beneficiary agrees to transfer certain benefits to the provider after their death. Typically, this involves the transfer of property ownership or other property rights; often, the contract provides that the provider will acquire real estate from the beneficiary, but this may not always be the case. The contract may also cover movable property (e.g., a car) or other rights (e.g., a share in a business) or involve multiple items and rights simultaneously (such as a house with all furnishings).<\/p>\n

Why Might a Lifetime Support Contract Be Right for You?<\/strong>
There are three primary reasons individuals choose a lifetime support contract.<\/p>\n

    \n
  1. \n

    Security, Comfort, and Assistance<\/strong>
    The first reason is that the beneficiary seeks a certain level of security, comfort, and assistance in life. This security comes from the assurance that a specific person (or persons) is contractually bound to provide certain support, so the beneficiary doesn\u2019t have to depend on the goodwill of others in old age or illness. The beneficiary\u2019s security lies in the contractual obligation of the provider, who must fulfill their duties to gain the promised benefits under the contract.<\/p>\n<\/li>\n

  2. \n

    Avoiding Inheritance Rules<\/strong>
    A lifetime support contract circumvents inheritance rules regarding the assets covered by the agreement. In other words, assets within the contract are excluded from the estate and aren\u2019t considered in determining potential violations of the right to a mandatory inheritance portion. Sometimes, the beneficiary may not want their property or part of it to pass to their mandatory heirs or specific ones. In this case, the beneficiary signs a contract with a specific person, thus excluding undesirable heirs from inheriting the assets covered by the contract.<\/p>\n<\/li>\n

  3. \n

    Ensuring Care by a Close and Trusted Person<\/strong>
    The third, and also common, reason involves the beneficiary’s wish to secure care, support, and assistance from a specific close and trusted person to avoid the possibility of relying on other people, whether relatives, elderly care homes, or third parties, in times of old age or frailty.<\/p>\n<\/li>\n<\/ol>\n

    Who Can Be a Provider?<\/strong>
    The provider can be any legally capable person who intends to care for the beneficiary. Typically, this contract is signed between parents and children or, for instance, between an aunt without children and her nephew, to avoid disputes after the beneficiary\u2019s death. Of course, signatories don\u2019t necessarily have to be related. For example, it could involve two neighbors, one of whom cared for the other by providing food and medication, taking her to the doctor, and, in return, would inherit her property.<\/p>\n

    Provider’s Obligations<\/strong>
    The contractual parties are free to agree on the exact terms of support. Some common obligations include:<\/p>\n

      \n
    • Ensuring the beneficiary\u2019s diet (purchasing groceries, delivering or cooking meals as needed)<\/li>\n
    • Maintaining the personal hygiene of the beneficiary and cleanliness of their living space<\/li>\n
    • Monitoring the beneficiary\u2019s health (obtaining medications, scheduling and driving to appointments, arranging private healthcare if necessary)<\/li>\n
    • Covering daily and other expenses related to the beneficiary’s life as stipulated in the contract
      A special obligation often includes the provider\u2019s duty to arrange the beneficiary\u2019s burial per local and religious customs.<\/li>\n<\/ul>\n

      Form of the Contract<\/strong>
      The lifetime support contract is strictly formal in nature. It must be in writing, signed by the parties, and certified by a notary. The contract includes the parties\u2019 details, information about the real estate involved, mutual obligations, and provisions for the potential termination of the contract. After an attorney drafts the contract, it\u2019s officially certified in a notary’s office in the presence of both signatories. The notary verifies the parties\u2019 identities, reads the contract aloud, and asks if they agree with its terms before signing. The contract includes a clause confirming that the involved property is excluded from the beneficiary\u2019s estate and that their mandatory heirs cannot claim from it.<\/p>\n

      Risks<\/strong>
      At the time of signing, the rights transferred to the provider are known. However, it\u2019s uncertain how long the beneficiary will live, meaning the provider’s obligations under this contract may last for years. In some cases, the provider may end up offering much more support than the property\u2019s value they would inherit upon the beneficiary’s death. The extent of the provider\u2019s obligation depends on the beneficiary’s lifespan.<\/p>\n

      Registration of Rights<\/strong>
      To prevent the beneficiary from selling the property after signing, the provider’s rights are recorded in the real estate cadastre upon notarization.<\/p>\n

      Costs<\/strong>
      Typically, the provider covers the costs associated with drafting, certifying, and executing the contract. After the beneficiary\u2019s death, the provider pays tax on the transfer of absolute rights, except when exempt as a first-order heir.<\/p>\n

      Provider\u2019s Death<\/strong>
      If the provider dies first, their heirs will be called to decide whether to accept the obligation of support. Of course, they are not obligated to do so.<\/p>\n

      With or Without an Attorney?<\/strong>
      Considering the strict formalities of this type of contract and the possibility of disputing its terms in cases of dissatisfaction, it\u2019s recommended that a qualified attorney draft the contract. An attorney will thoroughly explain the possibilities, consequences, risks, and discuss your specific wishes.<\/p>\n

      Da\u0161a Komneni\u0107<\/strong>, trainee attorney at Todorovi\u0107 Law Office<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<\/div>","protected":false},"excerpt":{"rendered":"

      What is a Lifetime Support Contract?A lifetime support contract is one of the most common inheritance-related agreements in legal practice…<\/p>","protected":false},"author":1,"featured_media":36883,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[27,28],"tags":[32,31],"class_list":["post-35871","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-advokatska-kancelarija-todorovic","category-law-office-todorovic","tag-advokatska-kancelarija-todorovic","tag-law-office-todorovic"],"_links":{"self":[{"href":"https:\/\/aktodorovic.rs\/sr\/wp-json\/wp\/v2\/posts\/35871","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/aktodorovic.rs\/sr\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/aktodorovic.rs\/sr\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/aktodorovic.rs\/sr\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/aktodorovic.rs\/sr\/wp-json\/wp\/v2\/comments?post=35871"}],"version-history":[{"count":4,"href":"https:\/\/aktodorovic.rs\/sr\/wp-json\/wp\/v2\/posts\/35871\/revisions"}],"predecessor-version":[{"id":36887,"href":"https:\/\/aktodorovic.rs\/sr\/wp-json\/wp\/v2\/posts\/35871\/revisions\/36887"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/aktodorovic.rs\/sr\/wp-json\/wp\/v2\/media\/36883"}],"wp:attachment":[{"href":"https:\/\/aktodorovic.rs\/sr\/wp-json\/wp\/v2\/media?parent=35871"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/aktodorovic.rs\/sr\/wp-json\/wp\/v2\/categories?post=35871"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/aktodorovic.rs\/sr\/wp-json\/wp\/v2\/tags?post=35871"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}