By a Contract for Support until Death, one party (the support provider) undertakes to support the other party or a third person (the support recipient) until their death, and the other party undertakes, in return, to transfer all or part of their property during their lifetime. The support provider acquires property or rights that are the subject of the Contract for Support until Death when these properties or rights are transferred in accordance with the law provided in the contract.
The Contract for Support until Death is a strictly formal contract, which means that it must be concluded in writing and certified by the competent court or notarized by a notary public or drawn up in the form of a notarial deed.
Reserving the Right of encumbrance
A specific feature of the Contract for Support until Death, in which the support recipient transfers real estate, is the possibility for the support recipient to establish a right of encumbrance on that property. In this way, the support recipient is entitled to demand support from anyone who is the owner of the property or who will become the owner of the property.
Termination of the Contract for Support until Death
The provisions for the termination of the Lifetime Support contract apply, which means that the contract can be terminated by mutual agreement, even after its performance has begun. It can also be terminated unilaterally if the support provider and the support recipient live together according to the contract, and their relationship is so disrupted that cohabitation becomes unbearable, or if one party fails to fulfill their contractual obligations.
Impact of the Death of the Support Provider on the Contract
If the support provider dies before the support recipient, their rights and obligations from the contract pass to their heirs if they agree to it. If the heirs do not agree, the contract is terminated. In this case, the heirs of the support provider have no right to claim compensation for support already provided and must return everything that the support provider acquired based on the contract to the support recipient. If the heirs of the support provider are unable to return what the support provider acquired based on the contract, they are obligated to compensate the value of what was acquired. The amount of compensation is determined by the court at its discretion, taking into account the financial circumstances of the support recipient and the individuals authorized to extend the Contract for Support until Death, as well as the rights that the support recipient enjoys based on the right of encumbrance.
The Contract for Support until Death has often been abused in practice by the support provider, where they would acquire ownership of the support recipient’s property without actually providing the support. One more way in which the support recipient can protect themselves is by establishing a personal right of residence on the property.
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