21. Allio v. Santiago Chardón
Citation: 2026 TSPR 13, 217 DPR ___, CC-2025-0050, Tribunal Supremo de Puerto Rico (Feb. 3, 2026). Opinion of the Court by Justice Rivera Pérez. Justices Pabón Charneco and Estrella Martínez each concurred in part and dissented in part, and each joined the other's writing.
Relevant Facts
On May 25, 2021, David John Allio Littauer executed an open will (Escritura Pública Núm. 16) before a Puerto Rico notary. The will named his two children as sole and universal heirs.
The will created two trusts for the children. One was a "Life Trust," with distributions staged by age and ending at 35. The other was a "Support Fund" for the children's care and upbringing. The will named his brother, Michael K. Allio Littauer, as executor (albacea) and trustee (fiduciario).
The testator died on February 12, 2023. The will was recorded in the Registro de Poderes y Testamentos. On March 21, 2023, the Court of First Instance issued letters testamentary (cartas testamentarias) to the executor.
Acting as administrator of the estate, the executor then executed two new instruments:
a "Life Trust u/w of David John Allio, dated May 25, 2021," signed in Providence County, Rhode Island and notarized April 5, 2023;
the "Allio Siblings Support Trust u/w of David John Allio," executed in Puerto Rico by Escritura Núm. 17 on June 30, 2023.
On August 11, 2023, the executor petitioned to divide the hereditary estate. On September 13, 2023, Carmen Santiago Chardón moved to declare the testamentary trusts void. She is the children's mother and at that time had custody and patria potestad. She also asked that a defensor judicial be appointed for the minors.
On January 8, 2024, the Court of First Instance denied the nullity request without stating reasons. The children were emancipated by public deeds on April 2, 2024, and in July 2024 they renewed the request.
On the trial court's order, ODIN issued Certification CFID-2024-000045 on August 15, 2024, stating that the instrument did not appear as registered in the Registro de Fideicomisos. On August 20, 2024, the trial court maintained its January 8 ruling.
On December 19, 2024, the Court of Appeals denied the certiorari petitions filed by both sides (KLCE202401032 and KLCE202401060). The Supreme Court first denied certiorari ("no ha lugar") on February 21, 2025, then granted reconsideration on May 2, 2025.
Legal Issues
Whether the Court of Appeals erred in refusing to review, by certiorari, the trial court's interlocutory refusal to declare the testamentary trusts void. Whether trusts created in a Puerto Rico open will are void under Article 5 of Law No. 219-2012 when they are not registered in the Registro Especial de Fideicomisos.
Positions of the Parties
Petitioners (Santiago Chardón and the children): The testamentary trusts are void because they were not registered as Law No. 219-2012 requires. The petitioners also challenged the Support Trust and asked that the trusts be terminated, that the trust created in Rhode Island be created and registered in Puerto Rico, and that the executor and trustee be removed.
Allio: He constituted the trusts in accordance with the testator's will. The "Allio Siblings Support Trust" (Escritura Núm. 17) was registered in the Registro de Fideicomisos (he cited inscription no. FDC-30062023-2475). The Rhode Island "Life Trust" did not need to be registered in Puerto Rico. Santiago Chardón lacked standing to seek nullity.
Decision of the Court
The Supreme Court reversed both lower courts. It reversed the Court of Appeals because that court "debió atender el recurso instado." It reversed the Court of First Instance "debido a que los fideicomisos testamentarios son nulos." It remanded for the trial court to schedule, "a la mayor brevedad posible," an evidentiary hearing "conforme a lo aquí resuelto." Given that ruling, the Court found it unnecessary to address the remaining assigned errors.
Reasons for the Decision
Under Rule 52.1 of Civil Procedure, an interlocutory order may be reviewed by certiorari when waiting for the appeal would be "un fracaso irremediable de la justicia." The Court found that denying the writ was a failure of justice, that the controversy arose "en una etapa idónea," and that this was the most opportune moment to examine the nullity of the testamentary trusts.
Article 5 of Law No. 219-2012 (32 LPRA sec. 3351d) provides: "Todo fideicomiso constituido en Puerto Rico se inscribirá en el Registro Especial de Fideicomisos, bajo pena de nulidad." The Registry is attached to ODIN. The notary who executes the trust must notify ODIN within the first ten days of the month following its execution.
A trust constituted in an open will must comply with Law No. 219-2012. The will itself was duly recorded in the Registro de Poderes y Testamentos, but ODIN's certification showed that the trusts were not registered. Therefore, "a pesar de que los fideicomisos fueron expresamente constituidos en testamento, al no haberse cumplido con el requisito de su inscripción, estos son nulos."
The trusts the executor created after the death "no son los fideicomisos constituidos en el testamento." The trial court must decide whether the executor exceeded his powers in constituting them and analyze "su validez y las formalidades de su otorgamiento." That court is best positioned to issue the orders needed for an orderly transfer of the assets, if it so determines. The Court noted that the record contained no evidence of the bank accounts or financial institutions to which the assets were transferred, and directed that the evidentiary hearing be scheduled promptly. In a footnote, the Court noted that the Rhode Island statute requires a trust memorandum sworn before a notary public (R.I. Gen. Laws § 34-4-27).
Justices Pabón Charneco and Estrella Martínez agreed that the testamentary trusts are void but dissented from the remand. Justice Pabón Charneco reasoned that, absent an express provision by the testator, an executor's powers are those set out in the Civil Code, so the executor's trusts should also have been held ultra vires. Justice Estrella Martínez would have declared those trusts "nulos y ultra vires." In his view, the remand leaves "la puerta abierta" to validating the executor's actions.