Viager

A viager is a type of life annuity in which the seller, known as the "vendor," transfers ownership of a property to the buyer, known as the "purchaser," in exchange for a series of regular payments. The payments are made for the rest of the vendor's life, and the purchaser becomes the owner of the property when the vendor dies.

There are two main types of viagers:

* Pure life annuities: In a pure life annuity, the payments are made for the rest of the vendor's life, regardless of how long they live.
* Joint life annuities: In a joint life annuity, the payments are made for the rest of the lives of the vendor and a designated beneficiary. If the beneficiary dies before the vendor, the payments will continue to be made to the vendor's estate.

Viagers can be a good option for retirees who want to generate income from their property without having to sell it. However, it is important to be aware of the risks involved before entering into a viager agreement.

One of the biggest risks is that the vendor may live longer than expected, which could mean that the purchaser will end up paying out more in payments than they receive in return. Additionally, viagers can be complex financial products, and it is important to make sure that you understand all of the terms of the agreement before signing.

If you are considering entering into a viager agreement, it is important to speak to a financial advisor to get professional advice.