Usufruct

AAA

DEFINITION of 'Usufruct'

A legal right accorded to a person or party that confers the temporary right to use and derive income or benefit from someone else's property. Usufruct is usually conferred for a limited time period or until death. While the usufructuary has the right to use the property, he or she cannot damage or destroy it, or dispose of the property.

INVESTOPEDIA EXPLAINS 'Usufruct'

For example, if a party has a usufruct in a real estate property, he or she has the full right to use it or rent it out and collect the rental income without sharing it with the actual owner, as long as the usufruct is in effect.


Usufruct is recognized only in a few jurisdictions in North America, such as Louisiana.

RELATED TERMS
  1. Personal Use Property

    A type of property that an individual does not use for business ...
  2. Personal Property

    A type of property which, in its most general definition, can ...
  3. Power of Attorney of Property

    A legal document transferring the legal right to the attorney ...
  4. Property Rights

    Laws created by governments in regards to how individuals can ...
  5. Insurance Defense

    An attorney who specializes in cases relating to insurance.
  6. Adverse Domination

    A legal doctrine that allows regulators to bring litigation against ...
Related Articles
  1. 6 Estate Planning Must-Haves
    Retirement

    6 Estate Planning Must-Haves

  2. Three Documents You Shouldn't Do Without ...
    Options & Futures

    Three Documents You Shouldn't Do Without ...

  3. Your Will: Why You Need A Power Of Attorney ...
    Options & Futures

    Your Will: Why You Need A Power Of Attorney ...

  4. The Top 3 Retiree Worries (And What ...
    Retirement

    The Top 3 Retiree Worries (And What ...

Hot Definitions
  1. Debit Spread

    Two options with different market prices that an investor trades on the same underlying security. The higher priced option ...
  2. Leading Indicator

    A measurable economic factor that changes before the economy starts to follow a particular pattern or trend. Leading indicators ...
  3. Wage-Price Spiral

    A macroeconomic theory to explain the cause-and-effect relationship between rising wages and rising prices, or inflation. ...
  4. Accelerated Depreciation

    Any method of depreciation used for accounting or income tax purposes that allows greater deductions in the earlier years ...
  5. Call Risk

    The risk, faced by a holder of a callable bond, that a bond issuer will take advantage of the callable bond feature and redeem ...
  6. Parity Price

    When the price of an asset is directly linked to another price. Examples of parity price are: 1. Convertibles - the price ...
Trading Center