Your Mainland Trust Works in Puerto Rico: What the Supreme Court’s Ruling in Santiago Chardón v. Allio Means for Act 60 Residents

Published: March 2026 | Author: Riefkohl Law
Category: Trust Law, Act 60, Multi-Jurisdictional Planning

Case: Santiago Chardón v. Allio, PR Tribunal Supremo (Feb. 3, 2026)

One of the most common concerns for individuals relocating to Puerto Rico under Act 60 is whether their existing estate plans survive the move. If you created a trust in Delaware, Rhode Island, New York, or any other mainland jurisdiction, does it still function once you establish residency in Puerto Rico? The Puerto Rico Supreme Court answered that question definitively in February 2026.

The Case

The Puerto Rico Supreme Court examined two testamentary trusts — a Support Trust and a Life Trust — created in Rhode Island by an individual with connections to Puerto Rico. The central issues were whether these mainland trusts could be recognized and enforced in Puerto Rico, how they interacted with Puerto Rico's Special Registry of Trusts, and what procedures applied to fiduciary appointments under the island's fideicomiso framework.

The Ruling

The Supreme Court confirmed that trusts created in other U.S. jurisdictions can be recognized and enforced in Puerto Rico, provided they comply with local registration formalities. The decision bridges two fundamentally different legal traditions — the Anglo-Saxon trust framework familiar to mainland practitioners and Puerto Rico's civil law fideicomiso tradition — confirming that they can operate together.

This isn't a minor procedural clarification. It's a foundational ruling for anyone with assets or legal relationships spanning both the mainland and Puerto Rico.Why This Matters for Act 60 Residents

Act 60 — the Incentives Code — draws thousands of individuals to Puerto Rico each year with its favorable tax treatment of investment income, capital gains, and export services. Many of these individuals arrive with sophisticated estate plans already in place: revocable living trusts, irrevocable asset protection trusts, dynasty trusts, and more. These instruments were typically created under mainland state law — Delaware, Nevada, South Dakota, or wherever the individual previously resided.

The question that has lingered is whether these trusts retain their force in Puerto Rico. If a trust created in Delaware purports to protect assets from creditors, does a Puerto Rico court recognize that protection? If a trust created in New York designates distribution standards, does a Puerto Rico court enforce them?

The Santiago Chardón decision provides the answer: yes, subject to compliance with Puerto Rico's registration requirements. This means Act 60 residents do not need to abandon or restructure their existing trust plans. Instead, they need to ensure those trusts are properly registered in Puerto Rico's Special Registry of Trusts — a procedural step, not a substantive overhaul.

The Fideicomiso Framework

Puerto Rico's trust law operates under the fideicomiso framework — a hybrid system that draws on both civil law traditions and modern trust concepts. Unlike mainland trust law, which developed through centuries of Anglo-Saxon equity jurisprudence, Puerto Rico's fideicomiso is codified by statute and integrates with the island's broader civil code.

The Santiago Chardón decision provides important guidance on how mainland trusts interact with this framework. The court addressed registration requirements, fiduciary appointment procedures, and the mechanisms by which out-of-jurisdiction instruments gain legal force in Puerto Rico. For practitioners, this decision is the roadmap for operating cross-jurisdictional trust structures on the island.Implications for Export Services Decree Holders

The ruling is equally significant for individuals operating under export services decrees. Many export services businesses are structured through entities and trusts established on the mainland. The confirmation that these trust structures are enforceable in Puerto Rico provides legal certainty for business owners who rely on trust-based asset protection, succession planning, and tax optimization.

For entrepreneurs with intellectual property, business interests, or investment portfolios held in mainland trusts while operating businesses in Puerto Rico, the Santiago Chardón decision removes a layer of jurisdictional uncertainty.

What You Should Do

If you've relocated to Puerto Rico under Act 60 or an export services decree and have existing trust structures from another jurisdiction, you should take three steps. First, confirm that your existing trusts are registered with Puerto Rico's Special Registry of Trusts. Registration is the procedural key that activates the protections confirmed in this ruling. Second, review your trust documents with an attorney who understands both mainland trust law and Puerto Rico's fideicomiso framework. The two systems are compatible, but certain provisions may need to be adapted or clarified to ensure smooth administration in PR courts. Third, consider whether your current estate plan takes full advantage of Puerto Rico's unique legal and tax environment. The island's fideicomiso framework offers flexibility that may not exist in your original trust's jurisdiction.

For those who haven't yet established trust structures, Puerto Rico's framework offers a compelling platform for new trust creation that integrates seamlessly with the island's banking system, Act 60 tax advantages, and civil law protections.

The Bigger Picture

The Santiago Chardón decision is part of a broader pattern of Puerto Rico's courts confirming the island's capacity to serve as a sophisticated trust jurisdiction. Combined with cases like Triangle Cayman v. Pérez Mendoza (confirming offshore trust recognition) and BPPR v. Zorrilla Posada (confirming trust-banking integration), the jurisprudence paints a clear picture: Puerto Rico is positioning itself as a viable and attractive jurisdiction for trust planning, especially for individuals who benefit from Act 60's tax framework.

For the growing community of Act 60 residents, this ruling provides essential peace of mind. Your mainland trusts work here. The legal infrastructure supports them. And with the right guidance, your estate plan can leverage the best of both worlds.

Need help registering your mainland trust in Puerto Rico or establishing a new trust under the fideicomiso framework? 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.