What is a lifetime maintenance contract?
A lifetime maintenance contract is a contract by which the recipient of maintenance undertakes to transfer to the grantor the property of precisely specified things or some other rights after his death, and the grantor of maintenance undertakes to support and take care of him, as compensation for this, until the end of his life and to bury him after his death.
Can a lifetime maintenance contract be concluded with a spouse, child, sibling, grandchild?
The answer is: yes, it can. The law does not set any obstacle in this direction.
What are the obligations of the maintenance provider?
If nothing else has been agreed, the maintenance obligation includes in particular the provision of housing, food, clothing and footwear, appropriate care in old age and sickness, medical expenses and allowances for everyday ordinary needs.
Do the assets listed in the lifetime maintenance contract go into the maintenance recipient’s bequest?
The answer is: they don’t enter. Therefore, the property covered by the contract after death belongs to the grantor, not the heirs. Even the necessary heirs cannot be satisfied with it. It is not inherited.
Can the right of maintenance provider be secured?
The provider of maintenance can secure his right from the contract by registering in the real estate cadastre.
Can a lifetime maintenance contract be terminated?
A lifetime maintenance contract may be terminated due to:
- disturbed relations (at the request of one or the other party), and if the court pronounces termination, the recipient of maintenance is obliged to pay compensation for the benefits and services received, and if the termination occurred due to the fault of one party, the other party has the right to fair compensation.
- changed circumstances to the extent that its fulfillment became significantly more difficult. The court can also arrange their relations anew.
Can a lifetime maintenance contract be voided?
At the request of the legal heirs of the maintenance recipient, the court may annul the lifetime maintenance contract if, due to the maintenance recipient’s illness or age, the contract did not present any uncertainty for the maintenance provider. Cancellation can be requested within one year from the date of learning about the contract (which cannot start before the recipient’s death), and no later than three years after the recipient’s death. Because of this rule, it is advisable to perform a psychiatric examination before concluding the contract, as well as a general systematic examination of the recipient of maintenance.
What if the maintenance provider dies before the maintenance recipient?
In this case, the obligations of the provider of maintenance are transferred to his spouse and descendants who are invited to the inheritance, if they agree. If they do not agree to the extension of the contract, the contract is terminated, and they cannot claim compensation for the previously given support. If the spouse and descendants of the maintenance provider are not able to assume the contractual obligations, they can demand compensation from the maintenance recipient, and the court will determine this compensation based on a free estimate, valuing the assets of the maintenance recipient and those who were authorized to extend the contract.
Danilo Babić- lawyer in Novi Sad
