Understanding Puerto Rico's Unique Estate & Gift Tax System
The Role of Trusts in Act 60 Estate Planning
Integrating U.S. and Puerto Rico Estate Plans
Frequently Asked Questions
Is my U.S. will still valid in Puerto Rico?
While a U.S. will can be recognized in Puerto Rico, it must go through a local probate process called "exequatur." It is highly recommended to have a separate Puerto Rico will to deal with your Puerto Rico assets to simplify the process and avoid potential complications.
How does the bona fide residency test impact my estate plan?
Your status as a bona fide resident of Puerto Rico is what separates you from the U.S. estate tax system. Failing to meet the residency requirements can have significant negative consequences for your estate plan. Our review process can help identify potential weaknesses in your residency file to ensure it is robust.
Can I use a U.S.-based trust for my Puerto Rico assets?
Yes, but it requires careful planning. Using a U.S.-based trust may expose your assets to U.S. taxation or create other complications. It is often advisable to create a Puerto Rico-based trust for your Puerto Rico assets. Our platform can help analyze your trust structure for potential cross-jurisdictional issues.
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This content is for informational purposes only and does not constitute tax, legal, or accounting advice.