Usufructuary

A usufructuary is a person who has the legal right to use and enjoy the benefits of another person's property (land, buildings, or other assets) for a specific period or until a specific event occurs, without owning the property itself. This right, known as a usufruct, includes the right to derive profits or income from the property, such as rent, crops, or interest, but the usufructuary is typically obligated to preserve the property's substance and value. The owner retains the bare ownership, which is often called the naked ownership. This arrangement allows for separation of ownership and use, often used in estate planning, inheritance, or as a temporary right granted in a contract.

Usufructuary meaning with examples

• The elderly widow became the usufructuary of her deceased husband's estate, allowing her to live in their home and receive the income from their investments until her death. This arrangement provided financial security without transferring ownership outright. She could collect rent on the apartment building.
• In a charitable trust, the usufructuary might be a vulnerable individual who is granted the right to reside in a property while the trust manages the assets. This ensures the person's housing needs are met without them needing to manage the complexities of homeownership. This included taxes and repairs.
• The agreement designated the children as the usufructuaries of their parents' farm, permitting them to cultivate the land and harvest crops during their lifetime, ensuring the farm's continued operation, whilst the ownership was preserved for later distribution in the will. This was a common inheritance strategy.
• As part of the divorce settlement, the wife was made usufructuary of the family's vacation home, providing her with a place to relax with the children, while her ex-husband retained ownership and responsibility for major repairs and the eventual sale. She could not damage the structure or property.
• The usufructuary enjoyed the benefits of a rare collection of artwork, allowed to display it for a specific time, but forbidden from selling or damaging the pieces, since the actual ownership remained with the museum. They were also required to ensure the safety and condition of the artwork.