What are the rights of someone with a life interest on a property?

Anonymous

A. The Spanish Civil Code establishes that the beneficiary of the life interest has to right to enjoy the property object of the ´usufructo´ as long as he does not alter the configuration of the good. Applied to a property, this would mean that he may rent or use for himself the dwelling, and obtain the owenrship of any proceeds made. What he cannot do is sell it.

The income obtained by renting the property out is therefore the beneficiary´s, without the possibility of the owner to benefit from it. What you can do is sell the property, but obviously at a reduced price given the special circumstances of the case and going to specialised real estate agents who deals with these properties.

Please note that although it may be extremely annoying to have a person alien to your family living in that property, he is protected by the laws by virtue of his marriage to your mother, and the laws contemplate a number of rights. Upon death of the beneficiary, life interest and bare ownership will consolidate into ordinary ownership, recuperating therefore all the possibilities to enjoy that property.

With regards to the monies received by the beneficiary of the life interest, he is certainly obliged to declare them to the tax man. You are able to report the taxman if you deem appropriate, as you are entitled to.

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