Hingham, MA asked in Estate Planning and Real Estate Law for Puerto Rico

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.

1 Lawyer Answer
Rafael  Pagan-Colon
Rafael Pagan-Colon
  • San Juan, PR
  • Licensed in Puerto Rico

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.

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