5 Critical Mistakes Act 60 Holders Make with Estate Planning

Content current as of April 2026. This page is for informational purposes only and does not constitute legal advice or create an attorney-client relationship. Consult qualified counsel before acting.

Mistake 1: Not Updating Your Will After Relocating

Puerto Rico is a civil law jurisdiction. The estate and succession rules are fundamentally different from common law states. Under the Civil Code (Ley 55-2020), a portion of your estate—the legítima—is reserved by law for your children. If your mainland will attempts to leave everything to a spouse or trust without accounting for the legítima, a Puerto Rico court can invalidate those provisions.

What to do: Have a Puerto Rico-licensed attorney review your existing will. Consider a dual-will architecture—one for Puerto Rico assets and one for assets elsewhere.

Mistake 2: Ignoring Forced Heirship Rules

Under the Civil Code (Ley 55-2020), one-half of your estate is reserved for your forced heirs—your children and surviving spouse, who share the legítima equally. The remaining one-half can go to anyone you choose.

What to do: Work with an attorney who understands both civil law forced heirship and the trust structures available under Puerto Rico Law 219-2012.

Mistake 3: Using Only a Mainland Trust

Mainland revocable living trusts were not designed with Puerto Rico’s legal framework in mind. Trust recognition, governing law conflicts, and forced heirship interaction all create issues. A mainland trust does not override Puerto Rico’s forced heirship rules.

What to do: Have your existing trust reviewed by a Puerto Rico attorney who understands Law 219-2012. Create a new Puerto Rico trust that works alongside your existing structures.

Mistake 4: Not Coordinating Federal and PR Estate Tax

U.S. citizens in Puerto Rico are subject to federal estate tax on worldwide assets. Act 60 income tax exemptions do not extend to estate and gift taxes. While Puerto Rico abolished its local estate tax through Act 76-2017, federal estate tax still applies, and residency issues can trigger state-level estate taxes in your prior domicile. Without proper planning, your estate may face unexpected tax exposure.

What to do: Engage an attorney and tax advisor who can model your estate tax exposure under both federal and Puerto Rico law. Consider lifetime gifting, ILITs, and charitable planning while the federal exemption is still high.

Mistake 5: Failing to Maintain Residency Documentation

If your residency is challenged posthumously, your estate could be treated as domiciled in your prior state, triggering state estate tax. Your Puerto Rico trust structures may be recharacterized, and Act 60 income tax benefits could be clawed back.

What to do: Maintain meticulous records of your presence in Puerto Rico: flight records, credit card statements, doctor visits, voter registration, community involvement. Instruct your estate planning attorney on where these records are stored.