Usufruct

Usufruct is a legal arrangement that gives a person temporary rights to use and benefit from another person’s property without transferring ownership. It combines two rights—usus (the right to use) and fructus (the right to enjoy the fruits or income)—while excluding abusus (the right to consume, destroy, or transfer the property).

How usufruct works

• The usufructuary (the holder of the usufruct) may use the property, occupy it, operate a business on it, or collect income from it (for example, rent or crop proceeds).
• The underlying owner retains title and the right to ultimate disposal of the property once the usufruct ends.
• The usufructuary must preserve the substance of the property and may not damage, destroy, or permanently dispose of it.
• Improvements made by the usufructuary ordinarily remain with the property at the end of the usufruct and revert to the owner, unless the arrangement specifies otherwise.

Types of usufruct

• Perfect usufruct: The usufructuary may use and profit from the property but cannot make substantial changes. For example, they can operate a business but cannot demolish and rebuild structures.
• Imperfect usufruct: The usufructuary has limited rights to alter the property for specific uses—such as making agricultural improvements to produce crops. These improvements typically become the owner’s property when the usufruct ends.

Common uses

• Estate and succession planning: granting someone the right to live in or benefit from property until an heir takes full ownership.
• Managing property when an owner is incapacitated: a relative or trustee can run a business or care for real estate on the owner’s behalf.
• Agricultural or resource-based arrangements: granting cultivation rights while preserving long-term title.

Jurisdictional note

Usufruct is most commonly found in civil law and mixed-law jurisdictions. In North America, it is chiefly recognized in Louisiana, where it functions within the civil-law tradition. Specific rights and limitations vary by jurisdiction and by the terms of the usufruct agreement.

Example

If Helen becomes incapacitated and grants Bert a usufruct over her bed-and-breakfast, Bert may run the business, collect income, and maintain the property while the usufruct lasts. He cannot sell the property, permanently alter its fundamental character, or dispose of it. When the usufruct ends (for example, upon Helen’s death or the expiration of the term), full control reverts to Helen’s estate or the designated owner.

Key takeaways

• Usufruct grants temporary use and profit rights without transferring ownership.
• It includes usus (use) and fructus (benefit) but excludes abusus (right to destroy or transfer).
• Usufruct can be perfect (restricting substantial changes) or imperfect (allowing limited alterations tied to use).
• It is a common tool in civil-law jurisdictions for estate planning and property management when owners cannot manage property themselves.