Q: Four friends, two of which are a married couple, own property in Puerto Rico. Would a real estate trust be beneficial?
Upon death of one co-owner, it is deisred that the decedents share(s) pass only to the surviving partners.
This is the primary residence for the majority of co-owners.
A: Puerto Rico Civil Code does not allow for donations to be made which may be perjudicial to an heir's share, should the donor die. That being said, a legitimate scenario would be for the two married couples incorporate or establish a commercial society, and transfer the property to the corporation, LLC, or society. Upon creation of the judicial entity, the four can redact and agree upon a stockholder's, or member's, or associate's agreement; whereby the corporation, LLC, or society would determine the monetary value of the deceased co-owner's participation in the owner organization as well as the circumstances under which the organization or corporation would either allow the deceased's heirs to become part of the organization or the monetary amount is paid to the heirs. In this form, the heirs would never possess a direct hereditary interest in the real estate property per se, but rather in the value of the deceased's participation in the corporation, LLC, or society.
Justia Ask a Lawyer is a forum for consumers to get answers to basic legal questions. Any information sent through Justia Ask a Lawyer is not secure and is done so on a non-confidential basis only.
The use of this website to ask questions or receive answers does not create an attorney–client relationship between you and Justia, or between you and any attorney who receives your information or responds to your questions, nor is it intended to create such a relationship. Additionally, no responses on this forum constitute legal advice, which must be tailored to the specific circumstances of each case. You should not act upon information provided in Justia Ask a Lawyer without seeking professional counsel from an attorney admitted or authorized to practice in your jurisdiction. Justia assumes no responsibility to any person who relies on information contained on or received through this site and disclaims all liability in respect to such information.
Justia cannot guarantee that the information on this website (including any legal information provided by an attorney through this service) is accurate, complete, or up-to-date. While we intend to make every attempt to keep the information on this site current, the owners of and contributors to this site make no claims, promises or guarantees about the accuracy, completeness or adequacy of the information contained in or linked to from this site.