What it means
Cornell's Legal Information Institute defines usufruct as the right to use and benefit from a property whose ownership belongs to another person, and the person who enjoys it is the usufructuary. The usufructuary must maintain the property as a responsible owner and not cause damage or diminution, except for natural depletion over time.
Louisiana's Civil Code states the idea briefly: Article 535 says usufruct is a real right of limited duration on the property of another, and it adds that the features of the right vary with the nature of the things, as consumables or nonconsumables. Cornell explains that modern civil law divides usufruct into perfect and imperfect, also called quasi-usufruct.
In a perfect usufruct the property is used without changing its nature, while in an imperfect one the property cannot be used without being consumed, such as money or food. For an imperfect usufruct, the usufructuary must deliver to the owner at the end the same value, or the same quantity and quality, as at the start, so the usufructuary may spend money and later return an equal amount.
Louisiana Article 550 says the usufructuary is entitled to all the fruits of the thing subject to usufruct, and Article 556 says the usufructuary acquires ownership of civil fruits accruing while the usufruct exists. Civil fruits accrue day by day, and the usufructuary is entitled to them regardless of when they are received.
The split matters in estate planning and family property, where one person can hold the right to use or earn from an asset while another holds ownership. The law of each country and state sets the details, so Louisiana is used here only as one worked example, and Cornell's entry was last reviewed in October 2021, so check current local law before relying on it.
In practice
Real-world examples.
Example
A fictional widow holds a usufruct over a house owned by her children. She may live in it and keep the benefits, such as rent if she lets a room. She must maintain it as a responsible owner would and may not let it fall into disrepair.
Example
A fictional person holds a usufruct over a $50,000 account. The money is consumed when spent, so this is an imperfect usufruct. At the end the owner is entitled to the same value, not the same bills, so the holder keeps a record of the opening balance.
Example
A fictional usufruct ends on the 10th day of a 30 day month. An assumed payment of $2,400 that counts as a civil fruit accrues day by day. The usufructuary is entitled to 10 days of it, which is $800, and the owner receives the remaining $1,600.
Formula
Calculation
Share of a civil fruit for a partial period = amount x days in the usufruct / days in the period.
Example with assumed figures: $2,400 x 10 / 30 = $800 to the usufructuary. The remaining 20 days, worth $1,600, belong to the owner.Case study
Seen in the real world.
This case study is fictional and illustrative. A man in a civil law jurisdiction owns a small apartment building. In his plan, his spouse receives a usufruct and his two children receive ownership. The spouse may live there or collect the apartment income. She must maintain the building and may not damage it beyond ordinary wear.
The children own the building but may not use it as they please during this period. The building has one tenant paying $2,400 each 30 day month. The usufruct ends on the 10th day of a month. Because civil fruits accrue day by day, the usufructuary takes $800 and the owners take the remaining $1,600. The family also holds a $50,000 account under the same arrangement, and the account is a separate asset from the building.
Because the money is consumed on use, the spouse must return the same value when the right ends. The parties record the account balance at the start. The lesson is that usufruct splits use from ownership. The family should record what is covered, how long it lasts and how fruits are shared.
Watch out
Common mistakes.
- Treating usufruct as ownership, when the holder only has a limited right on property of another.
- Forgetting the duty to maintain the property, which Cornell says is the standard of a responsible owner.
- Assuming a usufruct of money works like one on a house, when quasi-usufruct requires returning equal value.
Questions
People also ask.
What is a usufruct?
It is the right to use and benefit from property owned by someone else, for a limited time.
What is a quasi-usufruct?
It is a usufruct over consumable property such as money or food. The holder returns the same value or the same quantity and quality at the end.
Who gets the income from the property?
Under Louisiana's code, the usufructuary acquires civil fruits accruing during the usufruct. They accrue day by day.
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