A Lifetime Support Agreement is a contract by which the care provider undertakes to care for the beneficiary until the end of their life, providing food, care, medical treatment, and a dignified funeral. In return, after the beneficiary’s death, the care provider acquires ownership rights over the property specified in the agreement (most commonly real estate).
This agreement is regulated by the Inheritance Law, but it is highly flexible – the parties themselves define the scope and content of their mutual obligations. The agreement may be concluded between:
A key feature of the Lifetime Support Agreement is that the property covered by the agreement does not form part of the beneficiary’s estate and cannot be claimed by forced heirs, which often leads to litigation. Unlike a gift, where ownership is transferred immediately, in this case ownership is transferred only after the beneficiary’s death, meaning the property does not enter the estate and is not divided among heirs.
Before signing a contract – to verify the property and prepare a contract text that protects the interests of both parties.
During notarization – to ensure that all legal clauses have been properly observed.
If there is suspicion about the contract’s legality – a lawyer can initiate court proceedings for annulment or termination.
When heirs challenge the contract – legal representation in court is essential to protect your rights.
No – property covered by a Lifetime Support Agreement does not form part of the estate of the beneficiary.
This means that, after the beneficiary’s death, such property passes directly to the care provider in accordance with the agreement and cannot be subject to distribution among heirs. For this reason, forced heirs cannot claim a share of this property, which is a common cause of litigation in practice.
That is why it is crucial that the agreement be properly drafted and notarized, otherwise heirs may attempt to challenge it.
Yes. A Lifetime Support Agreement may apply only to a portion of property, for example one apartment, a house, a parcel of land, agricultural property, or even movable property such as a car or securities.
It is essential that the agreement precisely identify the property subject to transfer (e.g., parcel number, apartment number, surface area, address, real estate deed), and state whether the beneficiary retains certain rights, such as the right to live in the property until death.
The care provider acquires ownership only of property expressly covered by the agreement, while all other property remains part of the estate and is distributed among heirs. This form of agreement is often used when the beneficiary wishes to reward the provider with only a portion of their property while leaving the rest to statutory heirs.
If the care provider dies before the beneficiary, the Lifetime Support Agreement does not automatically terminate. The agreement continues, and the provider’s heirs assume the obligations if they agree, unless the contract stipulates otherwise.
This means that heirs take over the duty to continue supporting the beneficiary under the same conditions as the original provider. If the heirs refuse or are unable to do so, the contract is considered terminated by law, and they cannot claim compensation for support already given.
In practice, when heirs cannot provide support, courts usually terminate the contract, and ownership remains with the beneficiary.
Yes. The beneficiary may terminate the agreement if the provider fails to perform obligations or if the care provided is unsatisfactory. The law expressly allows termination when one party does not fulfill agreed duties.
In that case, the beneficiary may:
In practice, courts tend to protect the beneficiary’s interests, especially when dealing with elderly or ill persons, and termination is a common solution when adequate care is not provided.
The total cost of drafting and notarizing a Lifetime Support Agreement usually ranges from about €500 to €2,000, depending on the value of the property and the complexity of the contract.
For average apartments and houses, costs usually fall within this range, while for high-value property (e.g., multiple real estate units or commercial premises), costs may be higher.
No. A Lifetime Support Agreement cannot be concluded orally or privately without a notary.
It is a strictly formal contract that must be in writing and notarized (solemnized) before a public notary in order to be legally valid. The notary verifies the identity and consent of the parties, the legal basis of ownership, and must warn the parties that the property covered by the agreement does not form part of the estate.
If an oral or “private” arrangement is attempted, it has no legal effect – the care provider would not acquire ownership, and the beneficiary could not demand support as a contractual obligation.
Yes. Forced heirs may challenge a Lifetime Support Agreement, but only under certain conditions – not simply because they are excluded from inheritance, but if they can prove legal or factual deficiencies in the contract. The most common grounds are:
In practice, heirs most often allege that the beneficiary lacked capacity to understand the agreement at the time of signing, or that the contract was a sham intended to circumvent inheritance rules.
The beneficiary may enter into a new Lifetime Support Agreement with another provider only if the existing one is first terminated or annulled. As long as a valid agreement is in effect and properly performed, the beneficiary cannot unilaterally conclude a new agreement for the same property. Any such attempt would be legally void, and the notary would refuse to notarize it.
A new agreement may arise in situations such as:
In practice, this often occurs when an elderly person wishes to end a contract with a provider who does not fulfill obligations and sign a new one with someone offering genuine care.
Yes. The beneficiary may live in a nursing home even if they have a Lifetime Support Agreement, depending on how the contract is drafted. If agreed, the provider may cover and arrange nursing home expenses as a form of care.
The beneficiary may also decide independently to move into a home, but this does not relieve the provider of obligations – they must still contribute, either by covering expenses or otherwise.
Ideally, the agreement should contain a clause addressing this situation, but if not, the parties may sign an annex before a notary to specify the new obligations.
Yes. A Lifetime Support Agreement may be concluded between parents and children. The law does not prohibit it, but in practice such agreements often cause disputes among heirs.
A parent may sign with one child, who undertakes to provide care until the parent’s death, in exchange for ownership of specified property after death. The other children then have no rights to that property, since it does not form part of the estate. This is why siblings often challenge such agreements in court, claiming the parent was influenced, incapable of understanding, or that the agreement was merely a disguised gift.
Due to frequent family disputes, it is recommended that such agreements be drafted carefully with legal assistance, to ensure compliance with the law and reduce the risk of challenges.
To prove that the care provider failed to meet obligations, as much evidence as possible should be gathered to show that the beneficiary did not receive the agreed care and support. In practice, the following are often used:
Based on such evidence, the court determines whether the provider failed to meet obligations, and if so, terminates the contract, leaving ownership with the beneficiary.
Would you like to protect your rights and avoid potential future disputes?
Marović Law Office prepares and notarizes Lifetime Support Agreements throughout Serbia, ensuring full legal security and support at every step.
