Keith Mack
Puerto Rico's inheritance laws are governed by the Puerto Rico Civil Code. The code states that heirs are only responsible for a deceased person's debts up to the value of the property they inherit. This means that if the only asset left by the deceased is some land, for example, the beneficiaries who inherit that land will not be personally responsible for paying off any remaining credit card balances. In addition, credit card debt is generally not inherited by heirs named in a will. However, the amount of the estate that is deemed taxable is determined following funerary costs, the disbursal of decedent debts, and charitable gifts bequeathed by the deceased.
| Characteristics | Values |
|---|---|
| Main law regarding estate succession and real property rights | Puerto Rico Civil Code |
| Protection for surviving spouse | Right to remain in the family home for life |
| Inheritance without a will | First order goes to offspring and descendants |
| Inheritance with a will | Forced heirs are entitled to one-half of the estate |
| Inheritance with a will | Testator is free to bequeath the other half of the estate as desired |
| Inheritance with a will | Testator may appoint an administrator of the estate |
| Inheritance with a will | Testator can prohibit distributions of the estate for up to 4 years |
| Inheritance of debt | Heirs are only responsible for debts up to the value of the property inherited |
| Inheritance of debt | Heirs are not personally liable for debts unless they use estate assets to pay debts |
| Inheritance of debt | Credit card debt is generally not inherited |
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What You'll Learn
The Puerto Rico Civil Code
The Civil Code also includes provisions for the surviving spouse, giving them the right to remain in the family home for life, known as "occupancy rights for life". This modification allows the widow or widower to decide to stay in the house instead of receiving a percentage of the inheritance. This also prevents other heirs from requesting the sale of the property to divide the money.
In terms of inheritance, if there is a will, forced heirs are entitled to one-half of the Puerto Rico Estate, with the testator free to bequeath the other half as they desire. If there is no will, forced heirs inherit the entire estate in equal proportions. Additionally, if property is inherited by minors or individuals not of legal age, a guardian must be appointed to manage the property.
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Succession and wills
The Puerto Rico Civil Code is the primary law governing estate succession and real property rights in Puerto Rico. A foreign property owner is treated the same as a local owner, and no distinction is made between foreigners of different nationalities or religions.
The Civil Code was overhauled in 2020, and the new code includes several changes to succession and wills. Under the new code, there are only two types of wills: open wills (in deed form before a notary public) and holographic or handwritten wills. Closed wills, which were allowed under the previous code, have been eliminated.
The new code also gives protection to the surviving spouse, who now has the right to remain in the family home for life. This means that the widow or widower can choose to stay in the house instead of receiving 50% of the inheritance. This also prevents the rest of the heirs from requesting the sale of the property to divide the money. If the spouse is a joint owner, their consent is required to sell or convey the property.
Under both the new and previous codes, if there is a will, the forced heirs are entitled to one-half of the estate in equal portions (the "legitimate portion"). The testator can bequeath the other half as they desire. If there is no will, the forced heirs inherit the entire estate in equal proportions. The surviving spouse also has a usufruct over a portion of the estate.
The new code allows the testator to appoint an administrator of the estate, who may be someone other than the executor, to manage the estate until each heir accepts their inheritance. The testator may also prohibit distributions of the estate for up to four years, and the heirs may agree to extend this period.
In terms of debt inheritance, according to Puerto Rico law, credit card debt is generally not inherited by heirs named in a will. Article 584 of the Civil Code states that heirs are only responsible for a deceased person's debts up to the value of the property they inherit. Once the estate assets are exhausted, the debt does not transfer to the heirs.
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Inheritance of credit card debt
In Puerto Rico, credit card debt is generally not inherited by heirs named in a will. Article 584 of the Puerto Rico Civil Code states that heirs are only responsible for a deceased person's debts up to the value of the property they inherit. So, if the only asset left by the deceased was some land, the beneficiaries who inherit that land would not be personally responsible for paying off any remaining credit card balances.
Once the estate assets are exhausted, the debt does not transfer to heirs. For example, if there are no estate funds left after paying funeral and medical expenses, the inheriting beneficiaries are not responsible for the credit card debt. That said, it is still wise to formally notify all creditors of the death and close any open card accounts. While credit card companies cannot force beneficiaries to pay off debts from their own assets or income, the creditors could potentially make a claim against the estate for payment.
In Puerto Rico, the inheritance of property is distributed to the surviving spouse and children. The new inheritance law states that, after November 28, 2020, the heirs of an estate are the deceased’s spouse and children. Before that date, the estate belonged to the deceased’s children with an inheritance lien in favor of the widowed mother. The new civil code gives protection to the surviving spouse, allowing them to remain in the family home for life.
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Property rights
In Puerto Rico, real property located within its jurisdiction is subject to its laws. This means that if a foreign owner of Puerto Rican property passes away, the inheritance process will be governed by Puerto Rican law, not the law of the owner's domicile.
During the inheritance process, heirs cannot sell, convey, or transfer the inherited property. Foreign heirs must present birth certificates and other necessary documents to establish their legal rights in Puerto Rico. Ownership of real property is determined by the registered ownership in the Property Register of Puerto Rico. If a spouse is listed as a joint owner, their consent is required to sell or convey the property. If the spouse is not listed as a joint owner, the registered owner may transfer the property to anyone, including the new spouse.
The Puerto Rican Civil Code recognises the rights of forced heirs, which include the children of the deceased and, under the New Code, the surviving spouse. Forced heirs are entitled to half of the estate, known as the "legitimate portion". The remaining half, the "free disposition portion", can be bequeathed as the testator wishes. If there is no will, the forced heirs inherit the entire estate in equal proportions.
Under the Previous Code, heirs were liable for all debts of the estate, even if they exceeded the value of the inherited assets. However, the New Code offers protection, stating that heirs are only responsible for the deceased's debts up to the value of the property they inherit. This means that any debts exceeding the value of the inherited assets do not transfer to the heirs.
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Probate
In Puerto Rico, probate is the judicial procedure by which an estate is opened, administered, divided, and closed. This procedure is required to validate a will for distribution or when there is no will. The process starts with a petition to the Probate Court ("Tribunal de Primera Instancia"). This petition can be filed by one of the heirs without the need for the rest to appear in the document. However, before it is reviewed by a Puerto Rico court, the "ODIN" ("Oficina de Inspección de Notaría"), which oversees notarized documents, must certify the existence of a will. If no will exists, the court will issue a resolution declaring the heirs, known as a "Declaratoria de Herederos". An additional hearing may be required for the judge to decide on the heirs.
Through an "instancia" or deed, a lawyer explains to the Registrar of Property the process undertaken to close the estate. Along with the deed, the lawyer must present all the necessary evidentiary documents and information required by the Registrar to record the property under the heir's name. For bank accounts, banks are required by law to freeze the accounts upon notification of the death of an account holder. This prevents the depletion of funds outside of the probate system.
If the deceased resided outside of Puerto Rico, a probate order or decree must be registered in Puerto Rico through an "Exequatur" action in a court with jurisdiction over the matter. Similarly, if the deceased owned properties in multiple jurisdictions, the probate process must be initiated in each jurisdiction simultaneously.
Regarding inheritance, the Puerto Rico Civil Code states that heirs are only responsible for a deceased person's debts up to the value of the property they inherit. Therefore, beneficiaries are not personally responsible for paying off any remaining credit card balances if the only asset inherited was, for example, land. Once the estate assets are exhausted, the debt does not transfer to the heirs.
The Civil Code also includes protections for the surviving spouse, who is now a forced heir and has the right to remain in the family home for life. This implies that the widow or widower can choose to stay in the house instead of receiving 50% of the inheritance. Additionally, if the home exceeds the value of the inheritance, the surviving spouse can enjoy "occupancy rights for life", allowing them to live in the property at no cost.
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Frequently asked questions
Under the New Code, an heir is generally not liable for the debts of the deceased unless they use estate assets to pay off the debt.
If the heir is a minor, a guardian must be appointed to manage the property.
If there is no will, the offspring and descendants of the deceased are the first in line to inherit.
The New Code gives the surviving spouse the right to remain in the family home for life.
