Stammwert

00:06 Oct 21, 2019 

Tax-wise, I thought that was what GROB was for (second d-box post), which also mentions "retain an interest."

In any case, the main point was that the German text is flawed. It should've been either Vorbehaltsnießbrauch einräumen or Nießbrauch vorbehalten, but not Vorbehalt...vorbehalten; that's not right. E.g., including unentgeltlich: "Bezüglich...behält sich V auf Lebenszeit das unentgeltliche Nießbrauchsrecht an dem übertragenen Grundbesitz vor."
https://www.haufe.de/steuern/kanzlei-co/vorbehaltsniessbrauc...

Best

22:35 Oct 20, 2019 

Scott hasn't asked thequestion of 'sich ... einen unentgeltlichen Vorbehaltsnießbrauch vorbehalten' but. in the UK. at least would be known simply as 'retaining an interest in possession' (no free-of-charge and no beneficial) - usually with disastrous tax consequences for the settlor (US; trustor/ creator of the trust). That's why English judges consider that an elderly widow living in a mansion she had given away' to her children had not 'retained an interest in possession'.
https://www.darlingtons.com/blog/life-interest-trusts A life interest trust is also referred to as an interest in possession trust.

21:51 Oct 20, 2019 

"In general, Section 2036 requires the inclusion of property in the gross estate where the decedent has transferred property but retained: (1) the right to income from the property transferred; (2) the possession or enjoyment of the property; or (3) the right, either alone or in conjunction with any person, to designate the individuals who shall possess or enjoy the property or income therefrom."
https://www.genovaburns.com/publications/trusts-estates/2016...

Similarly: https://www.thetaxadviser.com/issues/2010/oct/taxtrends-oct2...

"Except for outright gifts, most of these methods allow a donor or his/her beneficiary to retain an interest in the gifted property, while transferring an income or remainder interest to charity."
https://www.delahayefinancial.com/files/40703/charitable-est...

As an aside, if you donate your home to charity, it's called a retained life estate. For the purpose of your document, I think usufruct should be fine: http://www.mondaq.com/unitedstates/x/748380/property taxes/E...

Best wishes

21:36 Oct 20, 2019 

Gordon is certainly right that "she retains the right to live there," but it's more than just a right to occupancy. All income derived from letting/renting the property or part of it will also go to her. Maybe the following definition of beneficial is a better fit for this scenario:
https://thelawdictionary.org/beneficial-use

The point is that the first sentence includes both "Vorbehalt" and "behält... vor," which is, according to the definitions I found, one Vorbehalt too many.

To make it clearer:
"In der Regel handelt es sich um vorweggenommene Erbregelungen, im Rahmen derer sich der Übertragende ein Nießbrauchsrecht am übertragenen Grundstück vorbehält und damit weiterhin nutzungsberechtigt bleibt."
https://www.iww.de/ee/archiv/steuerrecht-so-wird-der-vorbeha...

This means that if you were to write beneficial use, which I guess you could, "conditional" has to go. The "retain" in your sentence is already equivalent to "Vorbehalt" in German; anything more is not just redundant but wrong, I believe.

[...]

21:24 Oct 20, 2019 

I think the actual issue here is, as so often (ha ha), the German sentence, as it seems to be "doppelt gemoppelt," as Germans would say.

I found a much clearer explanation of Vorbehaltsnießbrauch, I believe. The shorter version:
"Bei einem Vorbehaltsnießbrauch überträgt der bisherige Eigentümer einen Gegenstand und lässt sich gleichzeitig vom neuen Berechtigten ein Nießbrauchsrecht an dem übertragenen Gegenstand einräumen."
https://www.wf-frank.com/erbrecht-abc/def/vorbehaltsniessbra...

The longer one:
"Übertragen die Eltern beispielsweise ein Mehrfamilienhaus (Mietshaus) ihrem Sohn und behalten sich das lebenslange Nießbrauchrecht vor, bis der letzte der beiden Elternteile verstorben ist, so wird der Sohn zivilrechtlich Eigentümer des Mehrfamilienhauses und gleichzeitig wird er von der Nutzung und Fruchtziehung (Mieterträge) ausgeschlossen. Man spricht hier vom sogenannten Vorbehaltsnießbrauch."
https://www.steuer-gonze.de/web/index.php/steuertips/privatp...

Again, see the part in bold.

[...]

21:19 Oct 20, 2019 

While the question may be closed, I think I should add a couple of points that could help with Vorbehaltsnießbrauch. Feel free to chime in.

What tripped me up at first was the way several sources defined beneficial use, e.g.:
"A beneficial use involves greater rights than a mere right to possession of land, since it extends to the light and air over the land and access to it, which can be infringed by the beneficial use of other property by another owner."

+

"the right to enjoy the use of something (particularly such pleasant qualities as light, air, view, access, water in a stream) even though the title to the property in which the use exists is held by another"
https://legal-dictionary.thefreedictionary.com/Beneficial Us...

See parts in boldface; that's why I said it seems to be a slightly different concept because the focus of usufruct is not on "pleasant qualities."

Still, I also looked up beneficial in Bryan A. Garner's "A Dictionary of Modern Legal Usage." He says the word beneficial has a special legal meaning, which comes from the older legal sense "of or pertaining to usufruct." In short, the difference may be less pronounced than I assumed.

[...]

09:19 Oct 17, 2019 

Like Björn, I don't feel comfortable with "conditional beneficial use" as a translation of "Vorbehaltsnießbrauch". "usufruct" could be good. I think "Vorbehalt" is to do with the transferer or seller of the property selling the property on condition that she retains the right to live there, rather than her use of the property being conditional on something else.

Nor do I like "uncompensated" as a translation of "unentgeltlich(en)". "uncompensated" doesn't make a lot of sense here, whereas something like "free of charge" or "rent-free" would convey the meaning of the German.

08:36 Oct 17, 2019 

"Das Gegenstück zu den 'ständig wiederkehrenden Kosten' sind die 'außerordentlichen Kosten und Lasten'. Kurz: Alles, was den Stammwert der Sache betrifft."
https://www.rosepartner.de/nc/niessbrauch-immobilie-haus-woh...

"Auf den Stammwert gelegt ist eine Last, wenn sie nicht aus den Erträgen, sondern aus der Substanz zu leisten ist."
https://www.haufe.de/recht/deutsches-anwalt-office-premium/d...

[außerordentlich = non-recurring]

See also Section 2126 of the German Civil Code. Similar to a Cost Basis in tax law: https://www.investopedia.com/terms/c/costbasis.asp

As an aside, a "Schenkung unter Vorbehalt" is called a "gift with reservation of benefit" in the UK. See the last section here...
https://www.erbrecht-heute.de/erben-vererben/vorbehaltsniess...

...and the first here:
https://www.wrighthassall.co.uk/knowledge/legal-articles/201...

Hope it helps.

08:22 Oct 17, 2019 

Not very fond of your conditional beneficial use for some reason, as this is a slightly different legal concept, I believe. LA and GA laws say "usufruct" (and conditional use in US zoning law is something else).

Cf https://legal-dictionary.thefreedictionary.com/Beneficial Us...
http://www.mylouisianasuccession.com/louisiana/usufruct

"I couldn't find a translation or explanation anywhere"

There are a few, since this was directly taken from the German Civil Code. See
https://dejure.org/gesetze/BGB/1047.html

Section 1047:
https://www.gesetze-im-internet.de/englisch_bgb/englisch_bgb...

I don't really like the BGB translation, but it's a start.

Best