1.  You will need each of the heir’s original Birth Certificates.

2. You will need the decedent’s original Death Certificate.

3. You will need a Negative Will Certification.

5. If the decedent died while married, you will need his/her original Marriage Certificate.

6. You will need a notarized Statement Under Oath that the information on the Petition is the truth.

7. You will need $65.00 in “Sellos de Rentas Internas”.

8. You will need to file the Petition and a project of the Resolution, or judgment, in court.

Please remember that all these documents MUST BE IN ORIGINAL, OR CERTIFIED COPIES. The court will NOT accept photocopies, unless there are extreme circumstances.

DISCLAIMER: Please don’t ask me for a model or boilerplate form for a Declaration of Heirs.  I would be glad to send you one, but the ethical risks of sending a non-client legal documents are far too great.  Call Pro Se, instead.

1. Time is your best friend.

We often hear that “Time is an attorney’s best friend.”, but when it comes to child support matters, it’s also your best friend.  Acting quickly can make or break a case. It can be the difference between “adequate representation” and “damage control”.  If you get a letter from ASUME (the Puertorrican Child Support Administration), don’t wait a few months to look for help. It won’t go away, and it’ll only get worse.  Jump right on it, and make sure that if you can’t handle it on your own, ask for help.  Help out there, but you need to look for it.

2. Be very, very, VERY careful when you fill out that PIPE.

A PIPE is the standard financial information form for all child support cases.  It comes both in Spanish and English, and it’s as complicated and as cryptic as government forms get.  There are literally HUNDREDS of small spaces to outline your financial situation: income, expenses, dependents, people living in your household, etc.  Do NOT grab a pen and start hacking away at it. The instructions aren’t really that clear, and the form in English has none. Again, look for help. Ask before completing it, and DO NOT file it unless you have an attorney check it out before you do. Unless, of course, you’ve filled out many of them. Even so, have an attorney take a look at it. After all, it is under oath, so a voluntary mistake can become a crime in the long run.

3. Your expenses might become your income.

Child Support in Puerto Rico is calculated based on either your gross, after-tax income, or your EXPENSES.  Yes, you read right. Your expenses.  The logic behind this is that if you’re spending it, you must be making it somehow.  Many of us live well beyond our means.  We stretch our budget, we take out loans, we refinance our homes, and sometimes we just survive. Spending money is NOT necessarily proof that you’re making it.  It just means that your finances might be off, or that your economic situation is in bad shape.  But, if you fill out your PIPE wrong, and you put down every single expense you’ve ever paid, your child support is going to sky-rocket.  And then, you’ll just have another debt to rack up.

4. Keep good records of EVERYTHING.

You might consider this tip as “common sense”, but when dealing with Child Support, it goes well beyond that.  Before, during and after your child support review or modification, keep records of EVERYTHING.  Cancelled checks, money order stubs, bank account statements and receipts are your best friends when it comes to determining your child support.  Government records are notorious for being off.  Sometimes, you will need to correct these records.  If you keep better records than ASUME (and we know you do), it’ll be easy to prove that you’ve paid throughout the years.  If you send ASUME a letter, send it through Certified Mail with Return Receipt.  Keep a copy of the letter, keep a copy of the receipt, and keep a copy of the reply.  That way, you can prove that you HAVE been in touch.  If you call over the telephone, which I’ve always thought was a very bad idea when dealing with government agencies in Puerto Rico, keep a record of the date, the time you called, who you spoke with, and what you talked about.  I know it sounds a little extreme, but it’s better to have this and not need it, than to need it and not have it.  Think of it as a your child support safety net.

5. Make sure EVERYONE has your postal address.

All ASUME and court child support communications are sent to the “last known address of record”.  If you move, and never tell them that you did, they’ll just keep sending letters to your old address.  Some of these letters might be to let you know that they’ll increasing your child support payments, or they’ll be garnishing your wages, or your income tax return.  Every single time you move, make sure you tell ASUME. Make sure they GET the letter.  Keep a record of your letter (see step 4 above), and if a few months pass by, and you don’t receive anything from ASUME, worry.  And then, send them a letter with your address.

This isn’t a sure fire list to guarantee that everything works perfectly during your child support case in Puerto Rico.  It’s just a few tips based on my daily practice that you can consider an ounce of prevention, and maybe save you a few headaches along the way.

The truth is that it is the responsibility of the heirs to divide the estate.

The executor’s rights, responsibilities and obligations are usually outlined in the testament. Anything not covered by the testament is outlined in the Puerto Rico Civil Code. While it may be true that an heir can named as an executor, or executrix, other heirs have the right to divide the estate whenever they wish to do so.

It’s up to the heirs to request that the estate be divided or not. Heirs can also choose to remain as co-owners of the undivided estate, or to divide assets according to the testament, but it is NOT the executor’s responsibility to divide the estate.

In order to be considered “married” in our jurisdiction, you need to have formally married either in Puerto Rico, or elsewhere.  Legal formalities of marriage are required in order to be considered married, and a marriage certificate is the best proof of a legal marriage.
Oftentimes, people will call themselves married, or other people may consider a couple who have been living together for many years as “married”, but when you take a closer look, they really aren’t.
While it is local custom to call partners “married” in order to avoid inquiring into their personal life, unless they have actually married, the supposed spouse cannot claim any legal rights as a true spouse, or a widow or widower.  Examples of these rights are communal property and widower’s usufruct.

In simple terms, a valid marriage in Puerto Rico requires a celebration or legal formality.

This doesn’t mean that a lifelong partner has absolutely no rights, but the type of rights he or she can claim vary significantly than those of a true spouse.

Este artículo fue inspirado por otro artículo publicado en Blawgit.com, del abogado Brett Trout. Pulse aquí para ver el artículo original.

Pocas cosas son más frustrantes para un abogado que verse obligado a renunciar a su representación legal a mitad de un caso contencioso.  La práctica de la abogacía está altamente regulada por varias instituciones y disposiciones legales, y responde a los Cánones de Ética, pero en ningún lugar se discute cómo ha de comportarse una persona como cliente.

He aquí una lista de las formas para garantizar que usted se quede sin abogado de la forma más rápida posible.

Hago una cierta salvedad:

Este artículo fue inspirado por dos sucesos recientes. El primero fue un cliente que me contrató, y luego me despachó diciéndome que “Abogados hay de más por ahí.” Jamás consiguió a otro abogado, quizás porque yo era el quinto que contrataba. Esta semana me llegó su sentencia desestimando con perjuicio su caso. Un caso excelente, pero con un cliente como él, garantizaba ser un desastre.

El segundo suceso fue un cliente que me contrató recientemente, y luego mágicamente desapareció. Ahora estoy a mitad de un proceso legal en su caso, y me arriesgo a recibir sanciones porque mi cliente no aparece.

Si usted maltrata a su abogado, o lo trata con desprecio, o abusa de su confianza, de seguro andará buscando representación legal prontamente.  He aquí mi lista de las cosas que usted puede hacer para garantizar que le renuncie prontamente:

Miéntame.

Cuando usted me contrata, le ampara un privilegio de confidencialidad.  Los cánones de ética que regulan la práctica de la abogacía impiden que divulgue sus secretos, más aún si son perjudiciales para su representación legal.  Mientras más información yo tenga, mejor será mi representación.  Pocas experiencias son peores que descubrir a última hora que la parte contraria tiene conocimiento de información perjudicial, sabiendo que con tiempo pudimos haber conocido de ella, y quizás impugnarla.  No le retenga información a su abogado, hasta el más mínimo detalle podría ser importante, y dificilmente me soprenderá.  Si lo hace, de seguro necesitará otro abogado pronto.

Tárdese en pagar.

Tardar más de 30 días en pagar su factura no es garantía de que su abogado le renuncie, pero tampoco ayuda. Si usted tiene una pregunta legítima sobre su factura, contáctelo inmediatamente. Si usted espera a que su abogado le contacte para resolverlo, parecerá que es una táctica para dilatar el pago, en vez de una discrepacia genuina.  Llámelo, pregunte, y resuelva.  Rápidamente.  Así ambos se benefician.

Sea maniático con su factura.

No me refiero a disputas genuinas, o errores, sino a escudriñar detalles nímeos de su factura. Increpar el porqué tardó más en cierto documento, o en alguna llamada telefónica o gestión garantizará la mala voluntad de su abogado. Si tiene preguntas sobre su factura, llámelo y discútalas. Todos metemos la pata. Si fue un error, lo resolveré sin problema. Si me pregunta por qué tardé dos horas en una simple carta, quizás no fue tan simple, y necesité buscar en tres tomos y dos tratados para redactar cuatro párrafos.

Sea descortés.

Aunque usted no lo crea, los abogados somos personas normales también. Nuestros hijos se enferman, nuestras mascotas mueren, también nos atoramos en tráfico y nuestras esposas nos exigen que pasemos más tiempo con ellas. Extiéndale la misma cortesía que le extiende al resto del mundo, y se lo agradeceremos eternamente. Mientras mejor trate a su abogado, mejor su abogado le tratará. Imagínese, que tengo clientes que aunque perdí miserablemente sus casos, me llaman para saber cómo estoy. Esos podrían llamarme a las 2am, y cogería el teléfono con beneplácito.

Llámeme fuera de horas laborables.

Aunque recibo llamadas fuera de horas laborables, casi siempre resultan ser emergencias. Si usted descubre un problema genuino, su abogado debería proveerle formas para poder llamarlo fuera de horas laborables. No existe una regla específica para esto, y todo el mundo tiene una percepción diferente de lo que constituye una emergencia. Algunos casos responden a horarios diferentes, y tienen necesidades diferentes. Algunos clientes trabajan a horas diferentes, o viven en zonas diferentes.  Afortunadamente, podrá saber si su llamada es urgente o no por el tono de mi voz.

Requiera todo inmediatamente.

Algunos casos requieren acción inmediata. Si usted cree que su caso necesitará acción inmediata, dígaselo a su abogado. Su abogado le dirá si puede proveer este tipo de servicio inmediato, y cuánto le costará adicionalmente. Por otro lado, hay trámites que están fuera de nuestro control. No podemos acelerarlos, porque si pudiéramos, lo haríamos. Sea paciente con el sistema, y con nosotros.

Desaparezca.

Su abogado recibe mucha correspondencia por usted. A veces, tienen fechas límites. Cuando su abogado trate de llamarle, esté disponible. De lo contrario, pasarán estas fechas, y de seguro algo se complicará. Así, todo saldrá más caro, y su abogado lucirá mal…y pronto necesitará otro abogado.

Ignore mis consejos.

No siempre tenemos la razón, pero si no le gusta lo que le sugerimos, dígalo, pero no busque a otro abogado. Pocas cosas molestan más a los abogados que consultar a varios abogados para obtener un consenso general. Si no es feliz con nuestros consejos, podemos ajustar nuestra táctica legal para ajustarse a sus necesidades. No todos los casos tienen la misma solución. Pero, si escoge una ruta, no cambie de ruta a última hora. De seguro necesitará a otro abogado, y ninguno de los que consultó tomará su caso.

Tristemente, los clientes suelen no darse cuenta que los problemas con su abogado eran subsanables hasta que intentan buscar a otro abogado. No hay una regla escrita, pero siempre nos preocupan los clientes que han pasado su caso de abogado en abogado. Por lo general, algo anda mal. Uno no sabe lo que tiene hasta que lo pierde.

La clave de todo es la comunicación. La gran mayoría de las veces, las desavenencias pueden arreglarse hablando. Una conversación abierta y honesta entre ambas partes es la clave para una relación abogado-cliente efectiva.

What is a disinheritance?

A disinheritance is the act by which a testator deprives a forceful heir from his or her legitimate portion of the estate, for a specific reason outlined in the Puerto Rico Civil Code. It is a resource provided by law to exclude a forceful heir from the estate when the heir has committed specific acts agains the testator.

Only forceful heirs can be disinherited, and they can only be disinherited by drafting a testament.

1. What are the requirements to disinherit an heirThat there is a forceful heir, such as a descendant, or ascendant. Only forceful heirs can be disinherited. The testator cannot disinherit someone who does not inherit to begin with.
2. The heir must have committed a specific action against the testator, and that action must be one of the outlined reasons or causes for disinheritance. Only then can he or she be deprived of their legitimate portion of the estate. (Article 773, 31 L.P.R.A. § 2451)
3. The action, and its cause for disinheritance by law, must be clearly expressed in the testament.
4. The name and identity of the heir must be clearly stated in the testament. (Article 775, 31 L.P.R.A. § 2453).

Exception: If the disinherit forceful heir contest the disinheritance after the testator dies, the remaining heirs have the burden of proof that the cause and action were committed by the disinherited heir.

The Puerto Rico Supreme Court has stated that the cause for disinheritance must be specified in the testament. Contrary to the ordinary rule of liberal testamentary interpretation, that which permits the court to interpret liberally the intention of the testator, and must prevail as his or her last will, in the case of a disinheritance the specificity of the actual exclusion must be clearly stated. A testator can only disinherit through one of the reasons stated by law, and these reasons must be clearly and unequivocally specified, as well as whom is addressed by these. A testator cannot reference another document, even if the document is a public scripture or of public domain.

What are the requirements for a valid disinheritance?

That the cause is specified in the PR Civil Code. If the reason is not in the Code, it will not work.

That the act or reason is true, in other words, that it really happened.

3. That the testator does not draft a will after the act or reason occurred, but did not include the disinheritance. The act must happen first, and then the will must be drafted. Any will drafted after the act or reason, but that does not include the disinheritance, will annul any subsequent disinheritance.

4. That the will containing the disinheritance has not been revoked by a subsequent will, and once drafted, complies with all the legal requirements for a valid will. If the will is insufficient to grant inheritance, it will be insufficient to disinherit, too.

5. Finally, that the testator and the disinherited will have not reconciled after the act occurred. If both reconcile, even if the testator proceeds to draft a will disinheriting the heir, the disinheritance is not valid. (Artículo 781, 31 L.P.R.A. § 2459)

Which are the reasons to disinherit?

All of the reasons for indignity, which are:

1. Abandon, compel to prostitution or falter against the honor of one’s offspring.
2. Sentenced for attempted murder of the testator, his spouse, his children, or his ascendants. This requires a final judgment by court.
3. Accuse in a defamatory manner the testator of committing a felony which carries imprisonment.
4. Fail to inform the authorities of the violent death of the testator for more than one month.
5. Suppress, hide or change a testament.
6. Found guilty by trial for adultery with the testator’s spouse.
7. Threaten, through fraud, or violence:

• a. compel to draft a will
• compel to change a will
• impede to draft a subsequent will
• impede to revoke a prior will

Causes for disinheritance of descendants:

1. Decline to provide sustenance for testator, without a legitimate reason.
2. Offend the testator by words or actions.
3. Engage in prostitution as a profession.
4. Accuse the testator of committing a felony, except when the felony is committed against the accuser.

Causes to disinherit parents or ascendants:

1. Being deprived of patria potestas.
2. Decline to provide sustenance, without a legitimate reason.
3. Accuse the testator of a felony.
4. Fail to post bail, having the resources to do so.
5. Being negligent in providing care.
6. Attempting to murder the opposite parent.

Causes to disinherit a spouse:

1. All the causes to grant a divorce.
2. All the casuses to deprive a parent from patria potestas, such as:

• Cause, or risk, physical, mental or emotional damage to a child, or permit another person to do so

• Fail to accompany a minor as stated by law, supervise the minor’s education and development, or provide adequately for sustenance, clothing, shelter, health care, in accordance to a parent’s economic capacity, or those provided by the State, or any other physical or private entity. Health care is comprised of the medical treatment necessary to treat any physical, mental or emotional condition, or to prevent a condition from occurring.

• If, while having the economic capacity to do so, fail to provide care and custody of the minor.

• Failing to provide a reasonable amount of child support, according to economic capacity.

• Failing to visit or communicate with the minor.

3. Decline to provide sustenance to the testator, or his/her children.
4. Attempt to murder the testator.

What are the effects of the disinheritance?

1. It has the effect of depriving the forceful heir of his legitimate portion of the estate.
2. The disinheritance prevents the disinherited heirs off spring from inheriting.
3. Any forceful heir that has received a donation from the testator, and is disinherited afterwards is considered a third-party to the estate, or a stranger, and therefore the donation is attributed to the free disposition third.
4. If an heir is disinherited, and the reason cannot be proven, or is invalid, the institution of other heirs in the testament is not invalidated. The other heirs must now redistribute the estate’s assets to include the once disinherited heir.

Finally, as you can see, the disinheritance is a complex estate matter. It is both uncommon, and has several formal requirements to be effective. The institution of a forceful heir is protected in our jurisdiction, which is why it is so difficult to disinherit a forceful heir in Puerto Rico. Regardless, a testator can recur to several reasons specified by law to this inherent, and has the option to do so if the heir has offended him or her in such a great matter that the heir must be excluded from the estate.

Before we begin discussing the importance of this recent amendment, we must clarify three main topics:

• Paternity Presumption
• Voluntary Recognition
• Paternity Contest

Paternity Presumption

There is a presumption that establishes that any child born from a married couple is theirs.  In addition, it is presumed that all children born after 300 days after the dissolution of the marriage, or divorce, are children of the male spouse. The father of this presumed child is the presumed father. All fathers can expect that all children born to their wives during their marriage are presumably theirs, and these children can be inscribed in the demographic registry without their consent, because it is presumed that if they are married or they are born during the 300 days after the divorce, these children are theirs. The reality is that sometimes this is not true, and the biological reality is substantially different, and before this law, the time period of three months or six months was final and could not be extended.  This is no longer the case.

Voluntary Recognition

Voluntary recognition is the process by which the father recognizes his son as his. This applies only to fathers.  Oftentimes, the father accompanies the mother of the minor to the demographic Registry and both parents affirm in writing that the minor that is being inscribed at that moment is theirs. Frequently, we’ll hear of a father who “gave his last name” to a minor that knowingly wasn’t his, for sentimental,  economic, or moral reasons. This constitutes a voluntary recognition, and that recognized child is, and will be, for all legal purposes, his child for the rest of his life. Therefore, this child will have a right to obtain child support from his or her father, use his or her father’s last name, and inherit in an equal matter as any other child would, be it presumed or recognized.

Paternity Contest

A paternity contest is the process by which the paternity of a presumed or voluntarily recognized child is contested, or denied. This process usually requires the filing of a lawsuit, or undergoing an administrative process through ASUME. Before this new law was approved, in addition to the time period being so short, the statute of limitations was calculated from the time the minor was inscribed in the demographic registry.

¿So how is it now?

The most important change that this law provides is that the time to contest paternity was extended to six months, which is calculated from the moment the parent is informed or finds out that his or her child is not theirs. In addition to this, any and all parents that have wanted to contest the paternity of their presumed children in the past, but were unable to because the statute of limitations had run out, are now able to do so, because the new law opens a window of six months from its date of approval. The law was approved on January 28, 2010, so any parent that wants to contest the paternity of their children must file a lawsuit before July 28, 2010.

Also, biological parents will have a longer time period to contest the paternity of the legal parent, and therefore be named legal parents of the minor they are intending to recognize as theirs as they will have a maximum of one year calculated from the time of inscription in the demographic registry.

The law states as follows: “… Based upon the date at which knowledge is obtained of the error or approval of this law, whichever is longer.”

The second-most important change brought on by this law are the persons authorized by law who will be able to contest the paternity. These are:

1. The presumed father
2. The biological father
3. The mother
4. The child, by himself or herself, or through their legal representation (if he or she is a minor)

These are the two most important changes in the law. For more details, you can read the law in Spanish, as approved, by clicking this link:

Law Number 215 of December 29 of 2009

Para más información, pulse este enlace.

Este conteo regresivo muestra el tiempo que falta para poder iniciar una demanda para impugnar la paternidad:

Lo sentimos, ya el tiempo expiró.

Luego de transcurridos los 6 meses, solamente se podrá presentar la demanda para impugnar la paternidad o reconocimiento voluntario en ciertas excepciones, según dispuestas por la Ley.

Este corto plazo NO SE PUEDE PRORROGAR, NI SE PUEDE INTERRUMPIR. Si usted tiene dudas, o si cree que esta ley podría aplicarle, consulte con un abogado INMEDIATAMENTE.

Esta certificación le permite descubrir si la persona fallecida registró o no un Testamento debidamente notarizado en Puerto Rico, y le proveerá la información del Notario que redactó el Testamento.  Esta información se solicita del Registro de Poderes y Testamentos de la Oficina de Inspección de Notaría del Tribunal Supremo de Puerto Rico.

Generalmente, este es el segundo paso más importante para iniciar un proceso de partición de herencia en Puerto Rico, siendo el primero la solicitud del Certificado de Defunción de la persona fallecida.  Aunque la solicitud sólo está disponible en español, esta solicitud agiliza sustancialmente el proceso, ya que no requiere el uso del correo postal, ni suministrar el pago de los $3.00 en cheque o giro postal.

Pulse este enlace para radicar electrónicamente la Solicitud.

Pero, antes de comenzar a discutir la importancia del cambio de esta ley, debemos tener tres conceptos claros:

• Presunción de Paternidad

• Reconocimiento Voluntario

• Impugnación de Paternidad

Presunción de Paternidad

Se presume que todo hijo nacido de una pareja casada es su hijo. También se presume que todo hijo nacido después de trescientos (300) días luego de la disolución, o divorcio del matrimonio, es hijo del marido. El padre de este presunto hijo es el presunto padre. Una marido puede esperar que todos los hijos que tenga su esposa sean presuntamente suyos, y los hijos pueden ser inscritos en el Registro Demográfico, ya que se presume que si están casados, o si nació dentro de los 300 días luego del divorcio, el hijo es suyo. La realidad no siempre es así, y antes de entrar en vigor esta ley, el plazo de tres y seis meses era final para impugnar esta presunción. Ya no es así.

Reconocimiento Voluntario

Reconocimiento Voluntario es el proceso por el cual un padre reconoce un hijo como suyo. A veces, el padre acompaña a la madre del menor al Registro Demográfico, y juntos reconocen que el nacimiento que se está inscribiendo en ese momento es producto de ambos. Frecuentemente escuchamos que alguien “le dio el apellido” a un hijo, aún a sabiendas de que ese hijo no era suyo. Esto constituye un reconocimiento voluntario, y ese hijo reconocido es, y será, hijo de quien lo reconozca por el resto de su vida. Así mismo, el hijo tendrá derecho a solicitar una pensión alimentaria, a llevar el apellido de su padre, y a herededar de igual manera que cualquier otro hijo, presunto o reconocido.

Impugnación de Paternidad

La impugnación de paternidad es el proceso mediante el cual se niega que un hijo presunto o reconocido es de un padre. Antes de entrar en vigor le nueva ley, además de ser el plazo tan corto, sólo se calculaba el tiempo desde la inscripción del hijo en el Registro Demográfico.

¿Y cómo es ahora?

El cambio más grande de la ley es que el término de tiempo se amplió a seis meses, y son contados a partir desde que el padre se entere de que su hijo no es suyo. Además, todos los padres que han querido impugnar su paternidad, pero no han podido porque el plazo había caducado, así podrán hacerlo, hasta seis (6) meses desde que entre en vigor esta ley. La ley entró en vigor el 28 de enero de 2010, por lo cual podrán instar una demanda de impugnación de paternidad hasta el 28 de julio de 2010.

Los padres biológicos tendrán un plazo mayor para impugnar la paternidad del padre legal, y así poder ser nombrados padres del menor que intentan reconocer.  El plazo del padre biológico es de un (1) año a partir de la inscripción del menor en el Registro Demográfico.

La ley dice lo siguiente: “…contados a partir de la fecha de que advenga en conocimiento de la inexactitud de la filiación o a partir de la aprobación de esta Ley, lo que sea mayor.”

El segundo cambio más grande de esta ley son las personas que podrán impugnar la paternidad. Estos son:

1. El presunto padre
2. El padre biológico
3. la madre
4. el hijo, por sí o por su representante legal (si es menor de edad)

Estos son los cambios más sustanciales de la nueva ley de paternidad.  Para un estudio más detallado, puede leer el texto de la ley, según aprobada, pulsando el siguiente enlace:

Ley Número 215 del 29 de diciembre de 2009

En BoricuaLaw.com ya habíamos descrito cómo se solicitaban documentos judiciales por correo postal y fax.

Anteriormente, era necesario enviar la solicitud por correo ordinario, o por fax. Ahora, sólo hay que enviar un correo electrónico a programa.documento@ramajudicial.pr, y recibirá las instrucciones para el recibo por correo postal de los documentos solicitados, el pago del trámite o instrucciones de cómo recoger personalmente los documentos.

Agradecemos esta actualización del trámite por parte de la OAT, y esperamos que así se agilice el proceso sustancialmente.

Para más información, visite:

http://www.ramajudicial.pr/Prensa/2010/01-19-10.htm

Banking policy in Puerto Rico establishes that all the decedent’s bank accounts are to be frozen as soon as the bank is notified of the passing.  This means that regardless of the account being single, or co-joined, all deposited money is automatically frozen until the bank receives a copy of the Puerto Rico Estate Tax Release granted by the Department of Hacienda.

This creates a huge problem for the surviving spouse, because all bank accounts in Puerto Rico where the decedent is a signor are frozen until further notice.  This is further aggravated by the fact that the Puerto Rico Tax Estate Tax Release usually takes several months to be granted.  Oftentimes, the surviving spouse is left without any money to cover for funeral arrangements, or medical expenses incurred by the decedent.

There are a few ways to mitigate the damage that this limitation may impose on the surviving spouse.

Here are five tips to help you plan ahead:

1.  Have enough cash around to cover living expenses for at least three (3) months.

While having cash lying around the house may be a nuisance at best, and a security risk at worst, given the propensity of bank accounts in Puerto Rico being frozen immediately after one spouse’s passing, it’s always a good idea to have enough cash on hand to cover for the first few months after passing.  This will serve as a sure-fire “buffer” guarantee to be able to gather information regarding the estate division ahead, and serves as a safety net for the grieving surviving spouse.  The higher the monthly cost of living, the more cash one has to store at home, or at a trusted location.   A small home vault, which can be found at very reasonable prices, can be fixed to a concrete wall, and its combination set and shared with a trusted party, is usually the best bet when storing cash at home. It is always advisable to conceal these vaults, and entrust its location with a confidant with specific written instructions and its combination.  Bank safety deposit boxes are not a safe location, because as with bank accounts, banks in Puerto Rico can freeze them, and prevent the surviving spouse from opening them until the PR Estate Tax Release is granted.

2.  Have separate bank accounts with enough funds to cover living expenses for one (1) year.

Any conscientious investment portfolio must always include a portion of cash assets to cover for unforeseen expenses, while leaving long term investments accrue.  It is always wise to have enough funds to cover anything from 8 to 11 months of living expenses.  In the case of a newly deceased spouse, it is essential that the same amount be kept in two separate accounts, since co-joined accounts will be frozen.  This way, the surviving spouse will be able to cover for any living expenses while the estate division is carried out, and the PR Estate Tax Form is filed, and subsequently, its release has been granted, thus enabling the spouse and heirs to withdraw from the accounts.

3.  Set aside funds to cover legal fees.

Some estate divisions are more complex than others.  If your proposed estate division is complex, it is a good idea to also include a portion of the saved funds to cover for the legal fees, or at least a retainer, that will be required by the attorney handling the estate division.  This retainer can also be negotiated and agreed upon before any untimely passing, and many attorneys can accommodate pre-paid terms on a future estate division.  Consulting legal counsel before a spouse passes away paves the road for a smooth estate division and asset transition.

4.  Have a Life Insurance Policy naming the surviving spouse as beneficiary.

Life insurance policies are not subject to most estate division laws in Puerto Rico.  They are unaffected by forced heirship, and do not require a PR Estate Tax Release.  They can be disbursed at the time of passing without further documentation or legal proceedings, other than those required by the insurance company.  Always check with the insurer, and review the terms of the policy in order to determine the specific requirements, which are oftentimes much less stringent than any other legal proceeding pertaining estate divisions in Puerto Rico.

5.  Keep a file with copies of all the important documents regarding properties.

The single most time consuming task of any estate division, contrary to the public’s general belief that it is quibbling heirs, is searching and gathering all the estate properties.  While estate divisions can be done in portions, it is much easier and cheaper to divide the complete estate in large portions, or all at once.  Since finding properties in Puerto Rico is a labor intensive, costly and time consuming task, having a file with all the properties substantially lowers the footwork required to gather an estate inventory.

While these tips are not a guarantee that the estate division will go smoothly, they will help substantially during the transitioning period right after the decedent’s passing.  Further estate planning is always advisable, but a little foresight will go a long way, and prevent unforeseen economic quagmires during the beginning of the estate division process.

¡Vítores a mis compueblanos cibernéticos del Tribunal Supremo!

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Primer Encuentro Nacional de Blogueros en Puerto Rico.

Este evento se celebrará el día miércoles, 6 de mayo de 2009 a las 9:00AM en el Centro de Empresas Emergentes en Ciencias y Tecnología, en la Urbanización Valle Tolima en Caguas.

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La actividad es gratuita, y contará con varios conferenciantes y actividades.

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