Contract of lifetime support in Bosnia and Herzegovina – engagement of the Law Office
Our law office has extremely rich experience in the process of composing, advising, representing and drafting a contract of lifetime support in cooperation with notaries in Bosnia and Herzegovina. As lawyers, we often conclude contracts and represent parties in the process of the contract drafting because the contract is a way to provide for elderly people in poor health or people who fear they will not be able to take care of themselves in the future due to possible illness, provide for a living and care in old age and illness. The contract of lifetime support may also be concluded without the presence of the provider / recipient of support in Bosnia and Herzegovina on the basis of legally certified power of attorney in strict form and content. For the sake of additional legal certainty, when we assess that it is useful for our clients, we also hire court medical experts to provide psychological expertise of the support recipient at the time of drafting the contract, and for the greater legal certainty.
Contract of lifetime support in Bosnia and Herzegovina
The contract of lifetime support obliges the support recipient to transfer to the support provider ownership of certain items or other rights, and the latter undertakes, as compensation, to support and care for him/her for the rest of his/her life and to bury him/her after death. Unless otherwise agreed in the contract of lifetime support, the support obligation includes the provision of housing and food in the provider’s household or elsewhere as specified in the contract, as well as meeting other needs of the support recipient and provision of necessary care in illness. The transfer of ownership to the support provider by contract may be delayed until the death of the support recipient.
Lifetime support may also be arranged for the benefit of a third party.
This contract may also be concluded by persons who are obliged by law to support each other. Assets that are the subject of a valid contract of lifetime support are not included in the estate of the support recipient.
Form of the contract of lifetime support
The contract of lifetime support must be concluded in the form of a notarized document. It is the obligation of the notary to instruct the parties on the hereditary legal consequences of the contract of lifetime support and to indicate in the document that this has been done so.
Ensuring the rights of a support recipient and provider
The agreed limitation of alienation or encumbrance until the death of the support recipient may be entered in the land register. If the transfer of ownership to the support provider is delayed until the death of the support recipient, the support provider may enter his/her right under the contract in the land register.
Liability of the support provider for the debts of the support recipient
The support provider is not liable for the debts of the support recipient, but it can be agreed that he/she will be liable to certain creditors for his/her existing debts.
Lifetime support for the benefit of multiple persons
When lifetime support is agreed for multiple persons, each of them has a separate right to certain benefits and deeds. With the death of one of these persons, his/her right to a certain benefit and deed is extinguished and does not pass to other persons, unless otherwise agreed in writing.
Non-transferability of rights
The claims of the support recipient against the support provider cannot be transferred to another person.
Termination of the contract of lifetime support
The parties may amicably terminate the contract of lifetime support even after its execution has begun. If according to the contract of lifetime support the contracting parties live together, and their relationship is so disrupted that their life together becomes unbearable, either party may request from the local court in Bosnia and Herzegovina to terminate the contract of lifelong support. Either party may request termination of the contract if the other party fails to perform his/her obligations. In the event of termination of the contract, each party reserves the right to claim from the other party compensation due to it under the general rules of property law.
The impact of changed circumstances on the contract of lifetime support
If, after the conclusion of the contract, the circumstances have changed so much that its fulfillment has become significantly more difficult, the court will, at the request of one or the other party, rearrange or terminate their relationship, taking into account all circumstances. The court may transform the right of the support recipient into a life annuity, if it suits both parties.
Cessation of the contract of lifetime support
In the event of death of the support provider, his/her obligations pass to his/her spouse and his/her descendants who are invited to inherit, if they agree. If they do not agree to the extension of the lifetime support contract, the contract is terminated and they are not entitled to claim compensation for the previously provided support. If the spouse and descendants of the support provider are unable to take over the contractual obligations, they have the right to claim compensation from the support recipient. The court will determine this compensation at its own discretion, taking into account the material circumstances of the support recipient and persons who were authorized to extend the contract of lifetime support.
Contract of lifetime support – aleatory contract
The contract of lifetime support is by nature aleatory, because it is not known what the amount of mutual benefits will be and how long the contractual relationship will last due to the uncertainty of how long the support recipient and provider will live. Such uncertainty introduces aleatoryness into this contract, and that is the reason why this contract cannot be refuted due to excessive damage.
Contract of lifetime support as a subject of litigation in Bosnia and Herzegovina
In Bosnia and Herzegovina, the contract of lifelong support is very often the subject of litigation, because the contract often excludes legal heirs from the inheritance contract, and it happens that their epilogue is long and exhausting court proceedings against the support provider, lawsuit for termination or nullity of the contract of lifetime support. The reason the heirs often state in lawsuits through lawyers is the inability of the support provider to reason when concluding the contract, or, possibly, non-fulfillment of contractual obligations on the part of the support provider. If often happens in court practice in BiH and in real life that the mutual relations between the contracting parties change so much after the conclusion of the contract that they become unbearable, and for that reason the contract cannot be maintained in force. As a reason for that there can certainly be gross neglect of obligations by the support provider stipulated by the contract of lifetime support. In case of termination due to disturbed relations, the support recipient is obliged to compensate the support provider for the received benefits and services during the contract duration.
Amicable termination of the contract of lifetime support
The amicable termination of the contract of lifetime support is in fact a new contract between the same contracting parties whose subject is the termination of the previously concluded contract. According to the principle of autonomy of will, the circumstance that leads to the termination of the contract is the will of the contracting parties themselves. Additionally, by contract with the notary, the parties may mutually agree on the compensation of the support provider for the duration of the contract.
Frequently asked questions about the contract of lifetime support in the practice of our law office:
Can a contract of lifetime support be concluded through a lawyer?
Yes, it can, provided the power of attorney is given in the form in which the contract of lifetime support is concluded, that is, certified by a notary and possibly, depending on the state, certified with the Apostille stamp. Also, that the interlocutor of the party giving the power of attorney be determined accurately and precisely, and that the essential elements of the contract of lifetime support be contained in the power of attorney which refers to the given contract that is signed.
Can a contract of lifetime support be concluded between spouses?
A contract of lifetime support in Bosnia and Herzegovina can be concluded between spouses.
Can a contract of lifetime support be concluded with relatives?
A contract of lifetime support can be concluded with relatives.
In what form is the contract of lifetime support in BiH concluded?
The contract of lifetime support in Bosnia and Herzegovina must be in a notarized form in order to be legally valid.
Can you represent me in concluding the contract that no one else can terminate in court?
We, as lawyers, can represent you in drafting this type of contract.
