Residence clause

A residence clause (also known as a stay clause) is an agreement between two or more parties. This agreement ensures that goods owned jointly by these parties will accrue to one or more of these parties upon a certain event.
A cohabitation agreement often includes a residence clause. Upon the death of one of them, all property jointly owned by them will then accrue to the surviving of them both.
A residence clause is also often included in a partnership or VOF contract. The partners then agree that upon death or termination of the partnership by one of the partnership members, all common property will accrue to the remaining partnership members.

Depending on the relationship between the parties to a sojourn clause, inheritance tax must be paid upon death on what is acquired under the sojourn clause.

For more information on residence clauses and their advantages and disadvantages, please contact us. We will be happy to advise you.