Usufruct is one of the fundamental institutions of civil law, as it is directly related to the right of ownership. In practice, it is often encountered in donations, parental grants, and inheritances, offering solutions that combine the protection of the donor’s, parent’s, or testator’s rights with the timely transfer of assets. Understanding its concept and implications is crucial, as it affects both the management and the utilization of property.
Usufruct is a personal and real right that grants its holder (the usufructuary) the ability to use and enjoy another person’s property, while preserving its substance intact. The owner retains what is called the bare ownership, whereas the usufructuary enjoys all benefits derived from the property’s use.
It is of limited duration, as it terminates automatically upon the death of the usufructuary or after an agreed period. Although it usually concerns real estate, usufruct may also apply to movable property or rights (e.g., shares, bonds).
The usufructuary enjoys the right to use and derive income from the property. This means that they may:
Reside in the property or use it in any lawful way,
Collect the income it produces (e.g., rent, agricultural yield),
Lease or grant its use to third parties.
Despite these extensive rights, the usufructuary also bears significant obligations:
Preservation of substance: they must use the property without altering, destroying, or reducing its value.
Maintenance: they are responsible for ordinary repairs and upkeep expenses.
Taxes and fees: they must cover taxes and charges related to the property’s use (e.g., property tax, municipal fees).
Thus, usufruct balances the right of enjoyment with the responsibility for proper management.
As a personal right, usufruct is not permanent but expires under specific conditions established by law or by the creating contract. The main cases of termination are:
Death of the usufructuary: the most common way of termination, since usufruct is generally non-transferable and does not pass to heirs.
Expiration of a fixed term: when a specific duration has been agreed (e.g., usufruct for 20 years), it ends automatically once the period elapses.
Renunciation: the usufructuary may voluntarily renounce their right, in which case it reverts to the bare owner.
Destruction or loss of the property: if the object of the usufruct ceases to exist (e.g., a building destroyed), the right is extinguished.
Due to its personal nature, usufruct is generally non-transferable. However, it may validly be agreed that a usufruct initially granted for life will not terminate upon the usufructuary’s death but will pass to another person. Such transfer can occur only once and not indefinitely, as perpetual deprivation of the owner’s benefits would contradict the very essence of ownership — which entails full control and enjoyment of the property.
Usufruct frequently appears in family property arrangements, particularly in parental transfers of real estate. A common example is when parents transfer the bare ownership of a property to their children while retaining the usufruct for themselves. This allows them to continue using or leasing the property for life, while the children become owners without depriving their parents of security.
Usufruct is also applied in inheritance planning, providing flexibility in asset distribution and management. Moreover, it has tax implications, as taxation depends on the value of the bare ownership and usufruct, as determined by tax law.
Usufruct combines legal security with practical flexibility. It separates ownership from use and enjoyment, serving the interests of both the owner and the usufructuary. Its structure offers particularly useful solutions in family and inheritance planning, while ensuring property protection.
However, establishing and exercising usufruct should always be done with care and legal guidance, to avoid misunderstandings or complications. Ultimately, usufruct stands as a valuable tool of estate planning, balancing the interests of the disposer with stability and the smooth transfer of property to the next generation.
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