How to Build Your Act 60 Advisory Team: The 5 Professionals Every Decree Holder Needs

Moving to Puerto Rico under Act 60 is not a one-professional job. The decree touches tax law, estate planning, real estate, insurance, and wealth management — often simultaneously. Yet most decree holders cobble together their advisory team haphazardly, hiring whoever they find first or whoever a friend recommended over drinks.

The result is predictable: missed planning opportunities, conflicting advice, gaps in coverage, and in the worst cases, aggressive tax positions that collapse under IRS scrutiny.

This guide explains who you need on your team, what each professional does, how they should work together, and what red flags to watch for when choosing advisors.

The 5 Professionals Every Act 60 Decree Holder Needs

1. Puerto Rico Estate Planning Attorney

What they do: The attorney is the legal architect of your Act 60 structure. They handle trust formation under Law 219-2012, navigate Puerto Rico's forced heirship rules under the Civil Code of 2020, advise on community property issues, draft prenuptial and postnuptial agreements, and ensure your overall legal structure is compliant and defensible.

When you need them:

• Before you apply for the decree (to structure your affairs correctly from the start)
• When forming trusts or other legal entities in Puerto Rico
• When buying real estate (to review contracts and title issues)
• During any life change — marriage, divorce, birth of children, death of a family member
• When facing an audit or compliance inquiry
• When planning to leave Puerto Rico (exit planning)

Why the attorney coordinates the team: Legal structures are the foundation on which everything else is built. Tax planning, insurance coverage, investment strategies, and real estate decisions all flow from the legal framework. If the legal structure is wrong, every other professional's work is built on a flawed foundation.

The attorney ensures that the CPA's tax strategies are legally sound, that the real estate agent understands the legal implications of property purchases, that the insurance advisor's recommendations align with the trust structure, and that the financial advisor's investment decisions do not create unintended legal consequences.

2. CPA with Puerto Rico Tax Expertise

What they do: The CPA handles tax compliance and planning — both Puerto Rico and federal. They prepare your Puerto Rico tax returns, your federal returns, coordinate the allocation of income between jurisdictions, advise on the tax treatment of investments and business income, and help you maintain compliance with decree conditions.

When you need them:

• Before you move (to model the tax impact of relocation)
• Every tax season (Puerto Rico and federal filing)
• When making significant investment decisions (to understand the tax consequences)
• When your income sources change
• During an audit
• When planning to leave Puerto Rico

What to look for: Your CPA must understand both Puerto Rico tax law and federal tax law, including the interaction between the two. A mainland CPA without Puerto Rico experience will miss critical issues. A Puerto Rico CPA without federal experience may not understand how the IRS views Act 60 positions.

The ideal CPA has experience preparing returns for Act 60 decree holders specifically, not just general Puerto Rico tax returns. The issues that arise for decree holders — income sourcing, pre-move vs. post-move gain allocation, Section 937 residency tests — are specialized.

3. Real Estate Agent with Act 60 Experience

What they do: A real estate agent with Act 60 experience understands the specific needs of decree holders: the requirement to purchase a primary residence in Puerto Rico, the areas where decree holders typically live, the implications of property purchases for residency compliance, and the market dynamics in neighborhoods popular with Act 60 residents.

When you need them:

• When buying your primary residence in Puerto Rico (a decree requirement)
• When purchasing investment property on the island
• When selling Puerto Rico property
• When evaluating rental opportunities

Why Act 60 experience matters: A general real estate agent in Puerto Rico may not understand the specific residency requirements, the importance of the primary residence purchase for decree compliance, or the neighborhoods and property types that serve decree holders well. An agent who works with Act 60 clients regularly can also introduce you to other professionals and help you integrate into the local community.

4. Insurance Advisor

What they do: The insurance advisor evaluates your risk exposure in Puerto Rico and recommends appropriate coverage. This includes property insurance (critical in a hurricane zone), liability insurance, life insurance that coordinates with your estate plan, and potentially umbrella policies that account for your total asset base.

When you need them:

• When purchasing property in Puerto Rico (before closing)
• When reviewing your existing coverage after relocation
• When your financial situation changes significantly
• Annually, to review coverage adequacy
• After any major weather event or loss

Puerto Rico-specific considerations: Insurance in Puerto Rico has unique characteristics. Hurricane coverage, flood insurance, and earthquake coverage are essential considerations that mainland policies may not address. The insurance market in Puerto Rico is also different from the mainland, and an advisor familiar with local carriers and coverage options is valuable.

Additionally, if you hold assets in a trust, the insurance advisor must coordinate with your attorney to ensure that the trust is properly named as an insured party and that coverage aligns with the trust structure.

5. Financial Advisor / Wealth Manager

What they do: The financial advisor manages your investment portfolio, provides retirement planning guidance, and helps you allocate assets in a way that is consistent with your Act 60 objectives and your overall financial goals.

When you need them:

• Before relocating (to evaluate the impact of the move on your portfolio)
• Ongoing, for investment management and financial planning
• When making major financial decisions (selling a business, receiving an inheritance, etc.)
• When life circumstances change

Coordination with the team: The financial advisor must work closely with both the attorney and the CPA. Investment decisions have legal and tax consequences, and the advisor's recommendations must be consistent with the legal structures in place and the tax positions being taken.

For example, if your attorney has established a trust to hold certain investments, the financial advisor must manage those investments within the trust framework. If the CPA has identified specific income sourcing issues, the financial advisor should be aware of how investment decisions affect the tax analysis.

How the Team Should Work Together

The most common failure in Act 60 advisory teams is the silo problem: each professional works independently, unaware of what the others are doing. This leads to conflicting advice, missed opportunities, and structural inconsistencies.

The Attorney as Coordinating Hub

The estate planning attorney should serve as the coordinating hub of the team. This does not mean the attorney manages every professional relationship — it means the attorney ensures that the legal framework is understood by all team members and that their advice is consistent with it.

In practice, this looks like:

• Initial planning meeting. When you first establish your Act 60 structure, the attorney and CPA should meet (together or sequentially) to align on the legal and tax strategy.
• Annual review. At least once a year, the attorney should review any changes to your trust structures, property holdings, or legal situation and communicate relevant updates to the CPA and financial advisor.
• Triggered consultations. When a major event occurs — a property purchase, a business change, a family event — the attorney should be the first call, and they can then coordinate with the relevant team members.

Communication Protocols

Establish clear communication expectations with your team:

• Each professional should have the contact information for all other team members.
• When one professional identifies an issue that affects another's area, they should flag it proactively.
• Sensitive communications should be routed through the attorney to preserve attorney-client privilege where applicable.
• Annual meetings or calls involving the full team are worthwhile for high-net-worth decree holders.

Red Flags When Choosing an Advisor

Not every professional who claims Act 60 expertise has it. Here are the warning signs:

No Puerto Rico License or Credentials

• An attorney advising on Puerto Rico law should be licensed to practice in Puerto Rico.
• A CPA handling Puerto Rico tax returns should be licensed in Puerto Rico or have a formal arrangement with a licensed Puerto Rico CPA.
• A real estate agent should be licensed in Puerto Rico.

Aggressive Tax Positions

Be cautious of any advisor who:

• Guarantees 0% tax on all your income
• Dismisses IRS scrutiny of Act 60 as unlikely
• Suggests you do not need to track pre-move vs. post-move appreciation
• Recommends structures that seem designed primarily to obscure income sources
• Markets their services based on how much tax they can "save" without discussing compliance risk

No Malpractice Insurance

Every professional on your team should carry malpractice or errors and omissions insurance. If an advisor makes a mistake that costs you money, their insurance provides a path to recovery. An advisor without insurance either cannot afford it (a red flag about their practice) or has chosen not to carry it (a red flag about their judgment).

Ask directly. A reputable professional will not be offended by the question.

Lack of References

Any advisor you engage should be able to provide references from other Act 60 decree holders. If they cannot, they may not have the specific experience they claim.

Conflicts of Interest

Be alert to advisors who earn commissions or referral fees from products or services they recommend to you. This is not always disqualifying, but it should be disclosed and understood.

Questions to Ask Each Professional

For the Attorney

• Are you licensed to practice in Puerto Rico?
• How many Act 60 decree holders do you currently represent?
• Do you handle both trust formation and ongoing compliance?
• How do you coordinate with CPAs and financial advisors?
• Do you carry malpractice insurance?

For the CPA

• Are you licensed in Puerto Rico?
• How many Act 60 returns do you prepare each year?
• How do you handle pre-move vs. post-move gain allocation?
• What is your approach to IRS audit defense for Act 60 clients?
• Do you carry errors and omissions insurance?

For the Real Estate Agent

• How many Act 60 clients have you worked with?
• Do you understand the primary residence requirement for decree compliance?
• Can you explain the property tax (CRIM) system in Puerto Rico?
• Do you work with a real estate attorney for closings?

For the Insurance Advisor

• Do you have experience insuring properties in Puerto Rico?
• Can you coordinate coverage with trust structures?
• Do you understand hurricane and flood insurance requirements in Puerto Rico?
• Are you independent or affiliated with a specific carrier?

For the Financial Advisor

• Are you a fiduciary?
• Do you have experience working with Act 60 decree holders?
• How do you coordinate investment decisions with tax counsel?
• Do you understand the income sourcing implications of investment decisions for Puerto Rico residents?

Start with Legal Counsel

The most common mistake decree holders make is starting with the wrong professional. They hire a CPA first, or a financial advisor first, and build the legal structure around existing advice instead of the other way around.

Start with your attorney. Get the legal framework right. Then build the rest of the team around that foundation.

Attorney Hans E. Riefkohl works with Act 60 decree holders to establish sound legal structures and build coordinated advisory teams. Whether you are just beginning the Act 60 process or need to strengthen your existing team, start with a conversation about your legal foundation.

Hans E. Riefkohl Riefkohl Law Phone: (787) 236-1657 Email: hans@riefkohllaw.com

Learn more about Act 60 Tax Incentives | Estate Planning Services | CPA Referral

This article is for informational purposes only and does not constitute legal advice. Consult with qualified professionals before making decisions about your Act 60 advisory team.