LAW OF OBLIGATION ACT, PART 5, CHAPTER 28

Part 5

SUPPORT CONTRACTS 

Chapter 28

LIFE ANNUITY

  • 568. Definition of life annuity contract

(1) In a life annuity contract, one person (the grantor of a life annuity) undertakes to pay, on a periodic basis, a specific sum of money or deliver other objects which are limited by specific characteristics (life annuity) to the other party or a third party (life annuitant) during the lifetime of the grantor, annuitant or other person. The payment of a life annuity is presumed to be without charge.

(2) The provisions of this Chapter apply to life annuities established by law or a court judgment unless otherwise provided by law or the court judgment.

  • 569. Term

(1) A life annuity contract is presumed to have been entered into for the duration of the lifetime of the annuitant.

(2) A life annuity established for the duration of the lifetime of the grantor of the life annuity or a third party shall transfer to the successors of the annuitant in the case of death of the annuitant.

  • 570. Form

Life annuity contracts shall be entered into in writing.

  • 571. Payment of annuity

(1) Monetary life annuities shall be paid three months in advance. Life annuities in a form other than in money shall be paid a reasonable period in advance if such advance payment may be reasonably presumed on the basis of the nature of the life annuity.

(2) If a person for the duration of whose life a life annuity is established dies before the expiry of the period for which the life annuity has been paid in advance, the life annuity which has already been paid cannot be reclaimed.

(3) If in the case specified in subsection (2) of this section the life annuity has not yet been paid, the life annuity for the period shall be paid to the successors of the life annuitant.

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