Puerto Rico Certificate of Trust with Real Property as Part of the Corpus

State:
Multi-State
Control #:
US-01183BG
Format:
Word; 
Rich Text
Instant download

Description

A certificate of trust is a shortened version of a trust that verifies the trust's existence, explains the powers given to the trustee, and identifies the successor trustee(s). A certificate of a trust agreement which conveys or contains an interest in real property must generally be recorded in the office of the county clerk where deeds are recorded and the property is located.


This form is a generic example that may be referred to when preparing such a form for your particular state. It is for illustrative purposes only. Local laws should be consulted to determine any specific requirements for such a form in a particular jurisdiction.

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FAQ

A will that is drafted, either outside or in Puerto Rico, must be declared valid and must go through a court process to be validated in Puerto Rico. If this process is not followed, the Registry of Property or the Institution that holds the funds will not respond to your requests.

The principal of an estate or trust is the amount originally received, plus capital gains and less debts, expenses, and capital losses. The principal is sometimes called the "corpus" (or body) of the estate or trust. The income is the interest, dividends, and other income earned by the principal.

As of November 28, 2020, inheritances are distributed in two parts. 50% is of free disposition and the other half (legitimate) is divided equally among the forced heirs, which are the children and now include the widow or widower.

When trust beneficiaries receive distributions from the trust's principal balance, they don't have to pay taxes on this disbursement. The Internal Revenue Service (IRS) assumes this money was taxed before being placed into the trust. Gains on the trust are taxable as income to the beneficiary or the trust.

Typically, this is accomplished by signing a general transfer document stating that the property is now owned by the Trustee. Simply file this document with the Trust's other records. The transfer document must contain a list of the assets being transferred to the Trust.

A Puerto Rico Trust must have specific assets that make up its patrimony. These assets can be any kind of present or future property, including real estate and personal property. It can be created over determined or determinable assets, or over all or part of a patrimony.

Property That May Avoid Probate Property held in a trust3 Jointly held property (but not common property) Death benefits from insurance policies (unless payable to the estate)4 Property given away before you die. Assets in a pay-on-death account. Retirement accounts with a named beneficiary.

'Express trusts have been a part of the law of Puerto Rico since enactment of §§ 1-41 of the Act of April 23, 1928, No. 41, page 294.

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Puerto Rico Certificate of Trust with Real Property as Part of the Corpus