Heirs Living Outside Puerto Rico: Handling It From Afar

Many Puerto Rican families are spread out between the island, Florida, New York, Texas or even Spain. When a mother, father or grandparent who lived in Puerto Rico dies, the children who live elsewhere often wonder whether they have to move back for a while to settle the inheritance. Usually, no. With a little organization, almost everything can be done remotely.

In this guide, the causante is the person who died (the deceased person whose estate it is); the sucesión is the group of their heirs (the estate); and the caudal relicto is the set of property and debts they left behind (the decedent's estate).

Your rights do not change because you live elsewhere

You inherit the same as your siblings. Where you live does not reduce your share. What decides who inherits and how much is whether there was a will and which civil code applies based on the date of death.

Until the estate is divided, everything belongs to everyone. From the death until the partición (division of the estate), there is a comunidad hereditaria (co-ownership among heirs): each heir holds an abstract share of the whole, not a specific item (Art. 1599 of the Civil Code). Each heir can sell their share, but specific assets, such as the house, can only be sold with everyone's consent (Art. 1604). That is why your signature, or the signature of someone who represents you, will be needed.

The power of attorney: your main tool

A power of attorney (poder) is a document in which you authorize another person (the agent, or apoderado) to act on your behalf. It can be a sibling who lives on the island, a trusted relative or a professional.

Where to sign it

• Before a Puerto Rico notario (in Puerto Rico a notary is an attorney), if you come for a visit. This is the simplest option, because the document is created as a Puerto Rico public instrument from the start.
• Before a notary where you live. A notarial document executed outside Puerto Rico needs to be protocolized here (protocolización) to have the effect of a public instrument, and the same fees are paid as if it had been executed on the island (Ley Notarial, the Notarial Act, Art. 38). In plain terms, protocolizing means that a Puerto Rico notary incorporates the document into their official record of instruments (their protocolo).
• Additional certifications. Generally speaking, a document notarized in another state or another country usually needs a certification from an authority in that place confirming the notary's signature, such as an apostille or an authentication, depending on the place. Requirements vary, so ask the Puerto Rico notary who will use the document exactly what they need before you sign.

What the power of attorney should say

Be specific. A general power of attorney may not be enough to sell real estate. If the plan is to sell the house, the power of attorney should expressly authorize your agent to sell, sign the deed, receive the money and, if applicable, cancel mortgages. If the agent will represent you in the declaratoria de herederos (declaration of heirs), in the partición or before Hacienda, it is a good idea to say so as well.

Choose the right person. The agent acts in your name. If there is tension in the family, it may be better to name a neutral person (see disputes among heirs).

Signing from a distance: the real options

The steps you can do online

Information return and relevo in SURI

For deaths on or after January 1, 2018, there is no estate tax in Puerto Rico, but you do have to file the estate information return, Form SC 2800 C (planilla informativa de caudal relicto, Modelo SC 2800 C), within 12 months of the death (Código de Rentas Internas, the Internal Revenue Code, Section 2051.01(e)). Some older pages from the Departamento de Hacienda ("Hacienda", Puerto Rico's Treasury) still say 9 months; that was the deadline under the previous system.

Since December 10, 2018, the return, the extension and the request for the relevo (Hacienda's lien release, formally the Certificación de Cancelación de Gravamen, which cancels Hacienda's lien on the property) are handled in SURI, Hacienda's online system (suri.hacienda.pr.gov). The person acting as administrator registers in SURI; no account is opened in the deceased's name. You can also authorize a representative in SURI (Carta Circular de Rentas Internas 18-19). This lets an heir in Orlando or Madrid take part without going to an office. Note that SURI and most Hacienda materials are in Spanish. Learn more in the estate information return and Hacienda's lien release.

The 6-month extension

If the person responsible for the return is outside Puerto Rico, the extension can be for up to 6 months instead of 3 (Section 2051.03; Form SC 2777). Keep in mind:

• You must request it before the original deadline passes.
• The form asks for the estate's employer identification number. That number is the federal EIN, which the IRS issues online for free.
• The SC 2777 instructions still mention the old 9-month deadline; current law says 12 months for deaths since 2018.

The deceased's bank accounts

Without the relevo, a bank or credit union cannot release to the heirs more than $15,000 or 25% of the funds, whichever is greater, and that includes joint accounts (Section 2054.05). If doña Ana's account had $48,000, 25% would be $12,000, so the bank could release up to $15,000 without the relevo. Each bank has its own process for heirs who live elsewhere; ask which documents it accepts by mail. See bank accounts of the deceased.

Selling the family home from afar

First, the inheritance paperwork. Before selling, you need the document that says who the heirs are: the will or the declaration of heirs. You also need Hacienda's relevo, because without it no notary can authorize the sale of an estate asset (Section 2054.05).

Second, everyone signs. All the heirs appear in the deed of sale, in person or through their agent. If one of them does not want to sell, the sale of the whole house cannot go forward until the disagreement is resolved; any heir can ask for the partición at any time (Art. 1775).

Third, the money. If three siblings sell a house in equal shares for $240,000, each would be entitled to $80,000 before paying debts, expenses and taxes. If you are not a resident of Puerto Rico, the buyer is required to withhold tax at the source on the payment that corresponds to you (Section 1062.08(g)). The guide selling an inherited house explains the tax basis and that withholding.

In the meantime, the house needs attention. Someone has to pay the CRIM property tax, the insurance and the upkeep. Agree in writing on who does it and how they will be reimbursed.

Practical tips for a family spread out

• Choose one coordinator on the island and share a digital folder with the death certificate, the will certificate, the declaration of heirs, the CRIM certifications and the account statements.
• Put important decisions in writing, even if only by email.
• Plan a single visit for the most important signing, if you can.
• If any of you holds property of the deceased in another state, also read estates with property in the U.S..

If the situation gets complicated, you can request a consultation with an attorney-notary.

CaudalRelicto.com is an independent guide. It is not Puerto Rico's Departamento de Hacienda, the courts or any government agency. This page is general information, not legal advice from an attorney who knows your case. Names and figures in examples are hypothetical. Found an error? Tell us.