Lifetime maintenance agreement with dependents: sample

General characteristics of a life annuity agreement

Under this agreement, the annuity recipient transfers to the other party (i.e., its payer) any property in ownership, and the annuity payer undertakes to pay the recipient a regular annuity for life in the form of a certain amount of money (Part 1, Article 583, Part 1, Art. 597 of the Civil Code of the Russian Federation (hereinafter referred to as the Civil Code of the Russian Federation)).

Features of a life annuity agreement:

- compensation of the contract, which assumes that each party receives counter-performance;

- by its legal nature, this is a real contract. After concluding an agreement and passing the necessary formal procedures, the property becomes the property of the rent payer with the opportunity to dispose of this property. Until the transfer of property to the payer into ownership, contractual obligations between the parties do not arise;

- unilateral nature of the obligation. After the transfer of property into the ownership of the rent payer, obligations under the contract remain only with him;

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— the payer of a life annuity bears the risks of accidental loss (accidental damage) of the transferred property. Despite serious damage and even destruction of the transferred property due to circumstances beyond his control, the payer must fulfill his obligations to pay a life annuity (Article 600 of the Civil Code of the Russian Federation);

— termination of a life annuity agreement is possible only at the request of its recipient in the event of a significant violation by the annuity payer of the terms of the agreement (Part 1 of Article 599 of the Civil Code of the Russian Federation).

Any subject of civil law can conclude a life annuity agreement as its payer: an individual or legal entity, a state or municipal entity.

Recipients of life annuity are exclusively individuals (Article 596 of the Civil Code of the Russian Federation). At the same time, the law allows for a plurality of persons on the side of the annuity recipient, that is, a life annuity can be established simultaneously in favor of several citizens. Unless otherwise established by the agreement, their share in receiving rental payments is assumed to be equal. The responsibilities of the annuitant do not change due to the death of one of the annuitants. His share in the right to receive annuity passes to other recipients who survive him, and the obligation of the annuity payer to pay it ceases only with the death of the last recipient (Part 2 of Article 596 of the Civil Code of the Russian Federation). Succession in the right to receive rental payments is not permitted by law.

The subject of a life annuity agreement is any property in civil circulation, both movable and immovable, not encumbered by the rights of third parties.

When transferring real estate, the rentee acquires the right of pledge over it (Part 1, Article 587 of the Civil Code of the Russian Federation). The waiver of such a right stated in the annuity agreement is void.

If the agreement deals with the transfer of real estate acquired during marriage, the consent of the spouse is required to conclude an annuity agreement (Clause 3 of Article 35 of the Family Code of the Russian Federation).

When transferring a sum of money or other movable property for rent payment, the rent payer is obliged to provide security for the fulfillment of his obligations or to insure the risk of liability for their non-fulfillment (improper fulfillment). Violation of this condition gives the annuity recipient the right to terminate the contract and demand compensation for losses (Parts 2, 3, Article 587 of the Civil Code of the Russian Federation).

Life annuity is paid in the form of a certain amount of money (Part 1, Article 597 of the Civil Code of the Russian Federation).

If the life annuity agreement provides for the free alienation of property, the amount of the monthly annuity cannot be less than the subsistence minimum per capita in the relevant constituent entity of the Russian Federation established by law, and in the absence of such, less than the subsistence minimum per capita in the Russian Federation as a whole (Part 2 Article 597 of the Civil Code of the Russian Federation). An increase in the size of the subsistence minimum entails a corresponding indexation of the size of the life annuity (Part 3 of Article 597 of the Civil Code of the Russian Federation).

As a rule, a life annuity is paid at the end of each calendar month, however, these conditions can be changed by agreement (Article 598 of the Civil Code of the Russian Federation).

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Annuity agreement with lifetime maintenance: sample

A sample agreement is here.

AGREEMENT of lifelong maintenance with dependents No. 7328

Arkhangelsk November 17, 2021

Citizen Nikolaev Evgeniy Valerievich, born March 29, 1937, passport (series, number, issued) 74 81 No. 849917 issued by the Kirov police department of Arkhangelsk on March 10, 1998, department code 387-947, living at the address: Arkhangelsk, st. Dimitrova, 38 kv. 31, hereinafter referred to as “Rentee”, on the one hand, and citizen Ilyin Petr Konstantinovich, born on April 21, 1974, passport (series, number, issued) 78 41 No. 847719 issued by the Kirov Department of Internal Affairs of Arkhangelsk 11 May 2009, division code 387-947, living at the address: Arkhangelsk, st. Kirova, 38 kv. 49, hereinafter referred to as the “Rent Payer”, on the other hand, hereinafter referred to as the “Parties”, have entered into this agreement, hereinafter the “Agreement”, as follows:

Lifetime maintenance agreement with dependents.

Read how to draw up a life annuity agreement here.

How to draw up an annuity agreement with lifetime occupancy, read the link:

The rent recipient transfers into the ownership of the rent payer a residential premises (apartment) located at the address: Arkhangelsk, st. Dimitrova, 38 kv.31, and the Rent Payer undertakes to provide lifelong maintenance for the Rent Recipient.
The apartment specified in clause 1 of this agreement is located on the fourth floor of a 9-story brick (panel) building and consists of four rooms with a total usable area of 140 sq.m., including a living area of 120 sq.m., which is confirmed by technical passport for the apartment issued by the Central BTI of Arkhangelsk. The apartment plan is attached to this agreement and is an integral part of it. The inventory assessment of the apartment is 6,500,000 (six million five hundred thousand) rubles.
The cadastral number of the alienated apartment is 46:49:8839334:9381.
The apartment transferred into the ownership of the Rent Payer belongs to the Rent Receiver on the basis of the purchase and sale agreement No. 473/23 dated August 5, 1968.
The rent recipient declares that there are no restrictions (encumbrances) in relation to the apartment specified in clause 1 of this agreement. In accordance with his application, as well as in accordance with the extract from the Unified State Register of Rights to Real Estate and Transactions with It, issued by the Office of the Federal Service for State Registration, Cadastre and Cartography of the city of Arkhangelsk, before the conclusion of this agreement, the apartment was not mortgaged to anyone, nor was it under arrest, there are no claims against it from third parties. No one is registered in the apartment alienated for payment of rent, and there are no persons who, in accordance with the current legislation, retain the right to use the alienated residential premises, which is confirmed by the certificate of ZheU No. 12, Arkhangelsk No. 84744 dated November 16, 2021. The rent recipient declared to the notary that he does not have a spouse who could lay claim to the alienated apartment, which is confirmed by certificate No. 8477448 dated March 19-November 15, 2021, issued by the local civil registration authority.
The cost of the alienated apartment was determined by the parties in the amount of 5,900,000 (five million nine hundred thousand) rubles.
The annuity payer undertakes to provide lifelong maintenance to the dependents of the annuity recipient. For these purposes, he undertakes to provide the Rent Recipient with food, clothing, medicine, care, and necessary assistance, the total cost of which is determined by the parties monthly in the amount of three minimum wages established by law. The cost of the annuity provided to the Recipient increases in proportion to the increase in the minimum wage established by law. In this case, cooking must be done at least once a day, cleaning the apartment in which the Rent Recipient will live must be done at least once a week, and laundry must be washed at least twice a month. The purchase of clothing, shoes, and medicines should be made as needed.
In the event of the death of the Rent Recipient, the annuity payer undertakes to pay the cost of funeral services in the amount of at least two minimum wages established by law at the time of the death of the Rent Recipient.
The rent recipient acquires the right to free lifetime use of the apartment located at the address: Arkhangelsk, st. Stepnaya, 11 kv. 31, owned by the Rent Payer on the basis of purchase and sale agreement No. 8488437 dated March 19, 2009.
The apartment specified in clause 9 of this agreement is located on the first floor of a 9-story brick (panel) building and consists of two rooms with a total usable area of 90 sq.m., including a living area of 80 sq.m., which is confirmed by technical passport for the apartment issued by the BTI Arkhangelsk.
The rent payer declares that there are no restrictions (encumbrances) in relation to the apartment specified in clause 9 of this agreement. In accordance with his application, as well as in accordance with the extract from the Unified State Register of Rights to Real Estate and Transactions with It, issued by the Office of the Federal Service for State Registration of Cadastre and Cartography in Arkhangelsk before the conclusion of this agreement, the apartment is not mortgaged to anyone, is not under arrest, there are no claims against it from third parties.
At the request of the Rent Recipient, the provision of dependent maintenance in kind at any time during the validity of this agreement must be replaced by the payment of periodic payments in the amount specified in clause 8 of this agreement. The specified requirement of the Rent Recipient must be stated in writing.
The rent payer has the right to alienate, pledge or otherwise encumber the acquired apartment only with the prior consent of the rent recipient.
If the rent payer alienates the apartment specified in clause 1 of this agreement, then his obligations under the agreement pass to its acquirer. However, in this case, the Rent Payer, according to the requirements of the Rent Recipient, bears joint and several liability with the purchaser of the apartment.
The rent recipient, in order to secure the obligation of the rent payer, acquires the right of mortgage on the apartment specified in clause 1 of this agreement.
The rent payer is obliged to take the necessary measures to ensure that, during the period of validity of this agreement, the use of the apartment transferred to his ownership does not lead to a decrease in its value. For these purposes, he undertakes to keep the said apartment in order and clean in accordance with sanitary and fire safety requirements, carry out the necessary current and major repairs in it, and eliminate the consequences of accidents and damage to the apartment.
The risk of accidental death or accidental damage to an apartment transferred for lifelong maintenance does not relieve the Rent Payer from the obligation to pay it on the terms provided for in this agreement.
The rent recipient assumes obligations similar to those provided for in clause 15 of this agreement in relation to the apartment specified in clause 9 of this agreement, provided to him by the rent payer for lifelong use, with the exception of carrying out routine and major repairs in it.
The parties have agreed on issues related to settlements for utilities and electricity bills in relation to the alienated apartment and have no mutual claims in this regard.
The transfer of the alienated apartment by the Rent Recipient and its acceptance by the Rent Payer will be carried out according to a transfer deed, which the parties undertake to sign no later than ten days from the date of signing this agreement.
The rent payer acquires ownership of the apartment from the moment of state registration of this agreement. The agreement is considered concluded from the moment of such registration.
In the event of the death of the Rent Recipient, the Rent Payer's obligation to pay the rent is considered terminated upon fulfillment of the condition specified in clause 9 of this agreement.
All changes and additions to this agreement must be made in writing, signed by the parties, notarized and registered with the same authority that registered this agreement.
The parties to the agreement, in the presence of a notary, declared that they are not deprived of legal capacity, do not suffer from diseases that prevent them from understanding the essence of the agreement they are signing, and that there are no circumstances forcing them to complete this transaction on extremely unfavorable terms for themselves.
The costs of drawing up this agreement are borne by the Rent Payer.
This agreement has been drawn up in four copies: one copy each for the Rent Payer and the Rent Recipient, the third copy for the notary and the fourth for the body carrying out state registration of the agreement.

ADDRESSES AND PAYMENT DETAILS OF THE PARTIES

Annuity recipient

Registration address: 737901, Arkhangelsk, st. Dimitrova, 38 apt. 31;
Postal address: 737901, Arkhangelsk, st. Dimitrova, 38 apt. 31;
Phone fax;
Passport series, number: 74 81 No. 849917;
Issued by: Kirovsky Department of Internal Affairs, Arkhangelsk;
When issued: March 10, 1998;
Signature: ___________________E.V. Nikolaev

Rent payer

Registration address: 737901, Arkhangelsk, st. Kirova, 38 apt. 49;
Postal address: 737901, Arkhangelsk, st. Kirova, 38 apt. 49;
Phone fax;
Passport series, number: 78 41 No. 847719;
Issued by: Kirovsky Department of Internal Affairs, Arkhangelsk;
When issued: May 11, 2009;
Signature: ____________________P.K. Ilyin

Essential terms of a life annuity agreement

The essential terms of a life annuity agreement include:

conditions arising from the essence of rental obligations set out in Art. 583 Civil Code of the Russian Federation;
a specific description of the property transferred for payment of rent (for example, address and description of the apartment) indicating whether its transfer is paid or free of charge;
the amount of rental payments, the method and procedure for their payment;
a condition on securing rental payments when transferring movable property (for real estate such a condition is not required, since it is encumbered with a pledge by force of law).

Judicial practice allows us to formulate a number of other provisions that should be reflected in a life annuity agreement:

provide for the solution of the issue of inheriting an apartment (other property) upon the death of the rent payer, which may occur before the death of its recipient;
resolve in the contract the issue of the place of residence of the rent recipient and the possibility of his relocation from the apartment (other real estate) transferred for rent payments;
indicate the provision on indexation of annuity payments depending on inflation, since from the nature of the life annuity agreement it follows that it is concluded for a long period.

Detailed regulation of all the specified conditions when drawing up a life annuity agreement will not allow an unscrupulous party to challenge it in the future on far-fetched grounds.