Life annuity

An annuity is under German law a recurring payment ( annuity), which to a certain event - is paid (§ § 759 ff BGB) - usually until the death of the recipient of the pension.

When the annuity is to differentiate between the fault legal business from which the obligation to buy an annuity, the order of the root law and the individual pension payments (which can be imagined as a fruit of the root law ).

Collateral

The annuity can be secured in rem by a real load on a plot ( § § 1105 et seq ). Also a notarized submission of the debtor in a foreclosure as security (§ 795 I No. 5 ZPO). Value hedges against inflation risk are possible by means of contractual clauses, unless they meet the price clause law.

Real Estate annuity

The real estate annuity allows the older owners to convert the value of their property into a lifelong pension. The receiver of the properties annuity get notarized grundbuch secure housing law - for a lifetime. You have the assurance of being able to remain living in their familiar surroundings.

Applications

House sales against annuity

An application for the annuity, the purchase of a house. The purchase price is not fully in agreement an annuity, but only partially paid (or not ). The buyer undertakes to then against the seller to pay a portion of the purchase price immediately and the rest as monthly annuity until death of the seller. The taxation of pensions is done acc. § 22 Income Tax Act in conjunction with § 55 of the Income Tax Act DVO with the maturity-related profit share.

For the seller, it is advantageous that he can secure a portion of his income for the rest of his life. For the buyer, there is hope that the seller dies unexpectedly early, hence the annuity ends prematurely. One speaks in this case of an actuarial gain. If there is no adjustment for inflation, the buyer can also hope that his income rise, but decreases the value of the annuity due to inflation.

House transfer to annuity

Another example is to secure the house transferor by annuity payments by the children or a testamentary legacy pension.

Annuity legacy

When pension legacy, the child is complaining of erblasserischen father as sole heir to an annuity in favor of the widow, for example.

Underwriting solution

Annuities can also be agreed as temporary annuities with an indefinite term. The contract ends here with death as risk elimination. Variants of the annuity are deferred life annuity, temporary life annuity and immediate annuity (immediate - regularly on the 1st of the month commencing annuity ).

Calculation

To calculate the value of an annuity, you can mathematically equivalent represent the situation this way:

The debtor ( buyer of the house ) has a fortune which by return in each period (monthly, annual) returns exactly the amount that must be paid to the creditor ( recipient of the annuity seller).

Capital is the part of the purchase price to be paid immediately, but as a life annuity. The formula assumes a constant interest rate of the capital market and of the case, which is the least favorable for the buyer, and eternal life of the creditor ( recipient of the annuity seller) accepts. Seen in this is the best value for the seller without the buyer will be taken advantage of, and is therefore the calculated lower limit for the amount of the annuity.

Is the basis of statistical data known, the average life expectancy of the seller, may also be used this formula (valid for payment at the end of the payment period, ie retrospectively):

Where n is the number of compounding periods (usually months), which is the seller still live statistically. The formula gives the best value for the seller without the buyer will be taken advantage of, and is therefore the calculated upper limit for the amount of the annuity.

P is the rate on the return on capital and the period of q must be adjusted. However, if it (as with many shops usual) of a monthly payment and interest rate of p, which represents the annual interest, then instead of q correctly to use square meter:

About the interest rate p, the yes for the future can not be predicted, but must be accepted, the amount of the annuity can also influence.

History

In the Middle Ages and the early modern period, the annuity for Christians was a way to bypass the ecclesiastical prohibition of interest. In this case, the creditor provided the obligor an amount of money available and received in return an annuity.

Swiss law

The annuity is in Switzerland in the Swiss Code of Obligations, Article 516 et seq regulated. Details governs debt collection and bankruptcy law ( Bankruptcy Law ).

The annuity can through ongoing contributions or by a single premium with the aim of later retrieval of the pension ( deferred annuity ) or by payment of a lump-sum contribution to the objective of the instant - a regular one months in arrears - retrieval ( beginning immediately annuity ) to be acquired. If an annuity is reconciled by a single payment, the actuarial present value of the annuity is usually paid as a settlement amount as payment amount. The root law an annuity of Swiss law is subject to seizure (Article 92, paragraph 1, line 7 DCBA ). This fact justifies the equality of acquisition against payment of an annuity by the debtor with a donation as part of the debt debt enforcement and bankruptcy law Pauliana (Article 286, paragraph 2, line 2 DCBA ).