Usufructuary

A usufructuary is a person who holds a usufruct, a civil-law right that allows the holder to use a property and derive its income or fruits without owning the property. The term derives from Latin ususfructus (usus meaning use and fructus meaning fruits). The usufructuary therefore may enjoy the property and its yields, while the underlying title remains with the bare owner.

Creation and scope: A usufructus can be created by contract, will, or statute and may apply to movable property or real estate. The usufructuary may use the property, live in it, rent it out, and collect rents, harvests, or other fruits. The basic substance of the asset must be preserved, and the usufructuary is typically responsible for ordinary maintenance and for taxes, insurance, and other charges related to its use. When the usufruct ends, the property and, in many cases, any improvements revert to the naked owner, unless contrary arrangements exist.

Relations and limitations: The bare owner retains ownership but cannot dispose of the property free of the usufruct; the usufructuary cannot alienate or encumber the property beyond the rights conferred by the usufruct. Rules regarding improvements or additions made by the usufructuary vary by jurisdiction; some jurisdictions require compensation to the owner for substantial improvements. The concept is often compared to a life estate in common law, though the precise rights and obligations differ across legal systems.

Uses and significance: Usufructs are common in civil-law systems for estate planning, family settlements, and certain forms of wealth transfer, allowing continued use or income from property while transferring ownership. The usufructuary is the holder of the right to use and enjoy the property under these arrangements.