Life Annuity-how to protect the elderly people from fraud?

Unfortunately, the facts of fraud against the elderly people have become quite common, as if neighbors and relatives are taking care of lonely people and then force them during their lifetime or fraudulently agree to transfer their property.   In reality, they are taking away elderly people’s property and sending them to a shelter or nursery houses. It turns out that they are evicting them from their own apartments.

How to avoid such a situation?

The Civil Code of Georgia recognizes such a concept as Life Annuity. This is an agreement under which  A person who undertakes to pay a life annuity (issuer) shall pay it to the recipient of the annuity (annuitant) during the recipient’s lifetime, unless the contract provides otherwise. The life annuity may be stipulated in money or in kind (accommodation, food, care or other necessary assistance).

Life Annuity can be established in cash or in kind (housing, food, care and other necessary assistance).

Who are the parties of the agreement?

Issuer and Annuitant.

What is the nature of the Agreement?

Life Annuity is a commutative agreement and implies the transfer of property by one party in exchange for pavement of compensation (care) by the other party. The agreement is signed for the fixed term and is valid as long as the person is alive.

What is the correct form of the agreement?

A Life Annuity agreement shall be concluded in writing and needs to be sealed by notary.

In the event of the death of Issuer, his obligation goes to his inheritance and he/she receives the property.

It the hires refuses to fulfill this obligation, the  property will be returned to the Receiver, at the time the agreement will be terminated.