Can you inherit a house in a life annuity?

My father purchased a property as a life annuity, which I inherited, should I continue paying the annuity?

during’a life annuity saleA seller (“annuitant”) transfers property to a buyer (“annuitant”) in exchange for the payment of an annuity, often until the seller’s death.

Hence the practice of dealing with the effects of the latter’s death usually results in the cessation of annuity payments. What if the buyer dies prematurely? The contract is not terminated by the death of the debtor. The annuity is payable to the heirs of the purchaser, undividedly and jointly, till the death of the annuitant.

This means that the debit holder can simply go to one of the heirs and ask them to pay the total amount of the annuity. It will be up to this heir to make arrangements with his or her co-heirs so that they can contribute up to their share of the inheritance.

annuities, deceased’s debt

Failure to pay the annuity carries heavy penalties. The annuitant may receive penalty payments per day of delay and cancellation of the sale. Depending on how the deed is drawn up, resolution of the sale may mean that the annuitant gets ownership of the property back without returning the amount received to the annuitant’s heirs.

For tax purposes, the annuity has to be taken into account in the inheritance declaration. Because if the assets are found in the assets of the estate, the remaining annuities, on the contrary, constitute the debt of the deceased. They will be capitalized into the liabilities of the property according to the life expectancy of the annuitant. For occupied life annuities – when the seller can continue to live in the dwelling – this right will also need to be taken into account when valuing the assets in the estate.

Leave a comment