Editor's note (October 2026): An earlier version of this article stated that Allio v. Santiago Chardón confirmed that trusts created in other U.S. jurisdictions are recognized and enforceable in Puerto Rico. That was incorrect. This article has been rewritten to reflect the Court's actual holding.
Published: March 2026 | Updated: October 2026 | Author: Riefkohl Law
Category: Trust Law, Act 60, Multi-Jurisdictional Planning
Case: Allio v. Santiago Chardón, 2026 TSPR 13 (P.R. Feb. 3, 2026)
People moving to Puerto Rico under Act 60 often ask whether their estate plan survives the move. In Allio v. Santiago Chardón, the Puerto Rico Supreme Court did not answer that question. Instead, it declared trusts written into a Puerto Rico will void because they were not registered, a ruling every trust owner here should understand.
The Case
In May 2021, David John Allio Littauer signed an open will before a Puerto Rico notary. The will named his two children as sole heirs and created two trusts for them: a "Life Trust," with distributions staged by age until 35, and a "Support Fund" for their care. His brother, Michael Allio, was named executor and trustee.
Mr. Allio died in February 2023. His will was recorded in Puerto Rico's Registry of Wills. The trusts, however, were not registered in the Special Registry of Trusts, which is kept by the Office of Inspection of Notaries (ODIN). An ODIN certification later confirmed this.
After the death, the executor signed two new trust documents: a "Life Trust" executed in Rhode Island and a "Support Trust" executed by Puerto Rico deed. The children's mother, Carmen Santiago Chardón, asked the trial court to declare the testamentary trusts void. The trial court refused without explanation, and the Court of Appeals declined to intervene.
The Ruling
Article 5 of Puerto Rico's Trust Law (Law 219-2012) is blunt: every trust constituted in Puerto Rico must be registered in the Special Registry of Trusts "bajo pena de nulidad," on pain of nullity. The Court held that, although these trusts were expressly created in a will, "al no haberse cumplido con el requisito de su inscripción, estos son nulos." Because they were not registered, they are void.
The Court reversed both lower courts, holding that the Court of Appeals should have taken the case, and sent it back for an evidentiary hearing as soon as possible.
Why This Matters for Act 60 Residents
Recording the will is not enough. The Allio will was properly recorded. The trusts inside it still failed because they were not in the Special Registry of Trusts.
The duty is the notary's, but the consequence is the family's. Article 5 requires the notary who executes the trust to notify ODIN within the first ten days of the following month. But the penalty for non-registration is a void trust. Here, the trusts a father designed for his children were declared void, and the family was still litigating nearly three years after his death.
The rule is not going away. Act 153-2026, effective six months after its July 2026 approval, amends the Trust Law to, among other things, allow revocable trusts. It keeps Article 5's registration requirement and its penalty of nullity.
What the Court Did Not Decide
The Court did not decide whether out-of-state trusts are recognized or enforceable in Puerto Rico. The executor argued that his Rhode Island "Life Trust" did not need to be registered here. The Court did not rule on that. It said the executor's post-death trusts "no son los fideicomisos constituidos en el testamento." It left the trial court to decide whether he exceeded his powers and whether those trusts are valid and properly executed. Justices Pabón Charneco and Estrella Martínez would have declared those trusts ultra vires in this appeal.
The Court did not address the Incentives Code. Section 2022.07 of the Code (13 LPRA § 45147) covers trusts of Resident Individual Investor decree holders. Under subsection (c), no one may challenge the provisions of a trust validly executed outside Puerto Rico by a decree-holding resident individual investor based on a Puerto Rico law or regulation that may be contrary to or inconsistent with them. Allio did not say how that provision interacts with the registry requirement, or whether it reaches a trust signed before the decree.
Allio should not be read as confirming that mainland trusts work in Puerto Rico, or that they do not. That question remains open.
What You Should Do
Confirm registration. For any trust created in Puerto Rico, by deed or in a will, ask the notary for proof that it was notified to ODIN, or have your attorney request an ODIN certification.
Review any will that creates a trust. If a trust in your will was never registered, fix it now, while you can still sign a new will.
Define your executor's powers. The remand in Allio centers on whether the executor could create new trusts after the death. Spell out what your executor and trustee may and may not do, and keep your Puerto Rico and mainland documents consistent.
Have your mainland trusts reviewed. Because the question is open, have an attorney review how your existing trusts would be administered and challenged in Puerto Rico, including whether Section 2022.07 applies to you.
Need help reviewing your will or trust, or confirming that a Puerto Rico trust is properly registered? Contact Riefkohl Law — serving clients in Puerto Rico and across the United States.
riefkohllaw.com | hans.riefkohl@riefkohllaw.com
This article is provided for educational and informational purposes only. It should not be construed as legal advice. Consult with a qualified attorney regarding your specific situation.