reglab/statecodes huggingface dataset:
2023 Laws of Puerto Rico › TITLE THIRTY-TWO - Code of Civil Procedure (§§ 1 — 3576) › Subtitle 4 - Special Legal Proceedings Law (§§ 2241 — 3355a) › PART V - Other Actions (§§ 2951 — 3355a) › Chapter 266 - Trust Act (§§ 3351 — 3355a) › Subchapter II - Private Trusts (§§ 3352 — 3353aa) › § 3352a - Content

The trust instrument shall specify:
(a) The date and the place where a trust is created;
(b) the express statement of the intention to create said trust;
(c) the name of the trust being created;
(d) a description of the trust property, or the portion thereof, subject to the trust. If such description is not possible at the time of constitution, a description of the requirements and characteristics of the property must be included;
(e) the designation of the person who may include other assets in the trust and, in that case, the manner in which such other assets may be included;
(f) the full and clear designation of the trustor, the trustee, and the beneficiary or substitutes thereof, if it applies. In case of future beneficiaries or types of beneficiaries, sufficient circumstances for their designation must be included;
(g) The powers and duties of the trustee and any prohibitions and limitations imposed thereon while administering the trust;
(h) any rights reserved by the trustor;
(i) the term or conditions, as the case may be, to which the trust is subject;
(j) the rules for accumulation, distribution, or disposition of the assets, income and proceeds of the trust assets; and
(k) any other clause that the trustor may wish to include; provided, that it is not contrary to the law, morality, or public order.
History —Aug. 31, 2012, No. 219, § 8.
2023 Laws of Puerto Rico › TITLE THIRTY-TWO - Code of Civil Procedure (§§ 1 — 3576) › Subtitle 4 - Special Legal Proceedings Law (§§ 2241 — 3355a) › PART V - Other Actions (§§ 2951 — 3355a) › Chapter 266 - Trust Act (§§ 3351 — 3355a) › Subchapter II - Private Trusts (§§ 3352 — 3353aa) › § 3352b - Subject matter of the trust

A trust is created only upon designation of the assets that shall constitute the trust property.
Any type of assets, whether existing or future, tangible or intangible, real or personal property, or livestock, may be held in a trust. Trusts may be created to hold determined or determinable assets and all or part of an estate.
If a trust is created to hold future assets, an autonomous estate shall not be constituted until such assets are effectively transferred to the trust. Upon the creation of a trust, the trustor or a third party designated by the same may add or substitute trust assets with the consent of the trustee, insofar as it does not hinder the purpose of the trust.
The provisions of the Civil Code and civil law in general on this convention shall govern the application of the provisions of this section.
History —Aug. 31, 2012, No. 219, § 9.
2023 Laws of Puerto Rico › TITLE THIRTY-TWO - Code of Civil Procedure (§§ 1 — 3576) › Subtitle 4 - Special Legal Proceedings Law (§§ 2241 — 3355a) › PART V - Other Actions (§§ 2951 — 3355a) › Chapter 266 - Trust Act (§§ 3351 — 3355a) › Subchapter II - Private Trusts (§§ 3352 — 3353aa) › § 3352c - The legitime in trust

The provisions of § 2367 of Title 31 notwithstanding, the legitime may be placed in a trust -that is, the legal portion and the extra portion- of an underage or disabled legatee, provided that the latter is designated as sole beneficiary of both income and principal.
If it has not been previously terminated because the legatee has reached legal age or no longer suffers a disability, trusts thus created are terminated when the minor is emancipated, the disability ends, or the legatee dies.
The testator may place in a trust the third of an estate that constitutes the extra portion in favor of one or some of his children or descendants subject to the provisions of § 3351e of this title.
History —Aug. 31, 2012, No. 219, § 10.
2023 Laws of Puerto Rico › TITLE THIRTY-TWO - Code of Civil Procedure (§§ 1 — 3576) › Subtitle 4 - Special Legal Proceedings Law (§§ 2241 — 3355a) › PART V - Other Actions (§§ 2951 — 3355a) › Chapter 266 - Trust Act (§§ 3351 — 3355a) › Subchapter II - Private Trusts (§§ 3352 — 3353aa) › § 3352d - Trusts on real property

Real property held in a trust shall be recorded in the Property Registry under the name of the trust.
History —Aug. 31, 2012, No. 219, § 11.
2023 Laws of Puerto Rico › TITLE THIRTY-TWO - Code of Civil Procedure (§§ 1 — 3576) › Subtitle 4 - Special Legal Proceedings Law (§§ 2241 — 3355a) › PART V - Other Actions (§§ 2951 — 3355a) › Chapter 266 - Trust Act (§§ 3351 — 3355a) › Subchapter II - Private Trusts (§§ 3352 — 3353aa) › § 3352e - Purpose of the trust

A trust may be created for any purpose, insofar as such purpose is contrary to the law, morality, or public order.
History —Aug. 31, 2012, No. 219, § 12.
2023 Laws of Puerto Rico › TITLE THIRTY-TWO - Code of Civil Procedure (§§ 1 — 3576) › Subtitle 4 - Special Legal Proceedings Law (§§ 2241 — 3355a) › PART V - Other Actions (§§ 2951 — 3355a) › Chapter 266 - Trust Act (§§ 3351 — 3355a) › Subchapter II - Private Trusts (§§ 3352 — 3353aa) › § 3352f - Who may be a trustor

Any natural or juridical person with the capacity to create a trust in favor of a beneficiary or for a specific purpose may be a trustor.
An inter vivos trust may have more than one trustor.
History —Aug. 31, 2012, No. 219, § 13.
2023 Laws of Puerto Rico › TITLE THIRTY-TWO - Code of Civil Procedure (§§ 1 — 3576) › Subtitle 4 - Special Legal Proceedings Law (§§ 2241 — 3355a) › PART V - Other Actions (§§ 2951 — 3355a) › Chapter 266 - Trust Act (§§ 3351 — 3355a) › Subchapter II - Private Trusts (§§ 3352 — 3353aa) › § 3352g - Capacity of the trustor

A natural person has the capacity to be a trustor to the extent that he has the capacity to transfer property free of trust inter vivos or mortis causa.
A juridical person has the capacity to be a trustor to the extent that it has the capacity by law to transfer the trust property to a particular trust.
Government entities authorized by law may hold their own assets in a trust and act as trustees thereof in order to further their purposes through a statement made according to the formalities herein established. Government entities may act as trustees if the purposes of the trust are within the objectives of such entity.
History —Aug. 31, 2012, No. 219, § 14.
2023 Laws of Puerto Rico › TITLE THIRTY-TWO - Code of Civil Procedure (§§ 1 — 3576) › Subtitle 4 - Special Legal Proceedings Law (§§ 2241 — 3355a) › PART V - Other Actions (§§ 2951 — 3355a) › Chapter 266 - Trust Act (§§ 3351 — 3355a) › Subchapter II - Private Trusts (§§ 3352 — 3353aa) › § 3352h - Reservation of right

In the trust instrument, a trustor may reserve the right to modify such trust, whether in whole or in part, either for himself or to delegate such right to a third-party.
History —Aug. 31, 2012, No. 219, § 15.
2023 Laws of Puerto Rico › TITLE THIRTY-TWO - Code of Civil Procedure (§§ 1 — 3576) › Subtitle 4 - Special Legal Proceedings Law (§§ 2241 — 3355a) › PART V - Other Actions (§§ 2951 — 3355a) › Chapter 266 - Trust Act (§§ 3351 — 3355a) › Subchapter II - Private Trusts (§§ 3352 — 3353aa) › § 3352i - Trustee

The trustee is the natural or juridical person designated in the trust instrument to administer the trust property in favor of the beneficiary according to the provisions of such trust instrument.
History —Aug. 31, 2012, No. 219, § 16.
2023 Laws of Puerto Rico › TITLE THIRTY-TWO - Code of Civil Procedure (§§ 1 — 3576) › Subtitle 4 - Special Legal Proceedings Law (§§ 2241 — 3355a) › PART V - Other Actions (§§ 2951 — 3355a) › Chapter 266 - Trust Act (§§ 3351 — 3355a) › Subchapter II - Private Trusts (§§ 3352 — 3353aa) › § 3352j - Capacity of the trustee

A natural person has the capacity to be a trustee to the extent that he has the capacity to administer the trust property for his own benefit.
A juridical person has the capacity to be a trustee to the extent that it has the capacity and authority by law to administer the trust property for a particular trust.
The trustor can be a trustee.
The beneficiary can be a trustee, provided he is not the sole beneficiary. If the trust has several beneficiaries, they can all be trustees.
The State can be a trustee, provided that it is expressly empowered by law for a particular trust.
History —Aug. 31, 2012, No. 219, § 17.
2023 Laws of Puerto Rico › TITLE THIRTY-TWO - Code of Civil Procedure (§§ 1 — 3576) › Subtitle 4 - Special Legal Proceedings Law (§§ 2241 — 3355a) › PART V - Other Actions (§§ 2951 — 3355a) › Chapter 266 - Trust Act (§§ 3351 — 3355a) › Subchapter II - Private Trusts (§§ 3352 — 3353aa) › § 3352k - Multiple trustees

The trustor may designate multiple trustees to carry out duties jointly or successively by indicating the order and terms under which they must operate jointly or successively, as the case may be.
History —Aug. 31, 2012, No. 219, § 18.
2023 Laws of Puerto Rico › TITLE THIRTY-TWO - Code of Civil Procedure (§§ 1 — 3576) › Subtitle 4 - Special Legal Proceedings Law (§§ 2241 — 3355a) › PART V - Other Actions (§§ 2951 — 3355a) › Chapter 266 - Trust Act (§§ 3351 — 3355a) › Subchapter II - Private Trusts (§§ 3352 — 3353aa) › § 3352l - Successor trustees

The trustor may designate one or more successor trustees in the trust instrument in the event of unwillingness to act of the person so designated or removal of the trustee for any reason. The trustor may delegate the designation of a successor trustee himself or to a third party.
If the trust instrument fails to set forth the manner in which a vacancy shall be filled, the successor trustee shall be designated by the court.
In modifiable trusts, the trustor, or the person so authorized by the trustor, may replace the trustee or designate new trustees at any time following the same formalities with which the trust instrument was executed.
History —Aug. 31, 2012, No. 219, § 19.
2023 Laws of Puerto Rico › TITLE THIRTY-TWO - Code of Civil Procedure (§§ 1 — 3576) › Subtitle 4 - Special Legal Proceedings Law (§§ 2241 — 3355a) › PART V - Other Actions (§§ 2951 — 3355a) › Chapter 266 - Trust Act (§§ 3351 — 3355a) › Subchapter II - Private Trusts (§§ 3352 — 3353aa) › § 3352m - Acceptance of the designee in testamentary trusts

A person designated as trustee who has not yet accepted the trusteeship may reject the trusteeship, but may not accept part of it and reject the other. A designated trustee who does not accept the trusteeship within a term of sixty (60) days, is deemed to have rejected the trusteeship, unless a competent court rules that a longer term is necessary given the particular circumstances. A person designated as trustee accepts the trusteeship by substantially complying with the method of acceptance provided by the trustor in the terms of the trust. If the terms of the trust do not provide for this method or the method provided in the terms is not expressly made inclusive, the trustee may state such acceptance by executing the trust or a separate instrument.
However, a person designated as trustee, before accepting, may:
(a) Act to preserve the trust property if, within a reasonable time after acting, the person sends a rejection of the trusteeship to the trustor or his heirs.
(b) Inspect or investigate trust property to determine potential liability.
History —Aug. 31, 2012, No. 219, § 20.
2023 Laws of Puerto Rico › TITLE THIRTY-TWO - Code of Civil Procedure (§§ 1 — 3576) › Subtitle 4 - Special Legal Proceedings Law (§§ 2241 — 3355a) › PART V - Other Actions (§§ 2951 — 3355a) › Chapter 266 - Trust Act (§§ 3351 — 3355a) › Subchapter II - Private Trusts (§§ 3352 — 3353aa) › § 3352n - Lack of testamentary trustee

A testamentary trust shall not become null because the designated trustee rejects such designation or, having accepted the same, ceases to be the trustee for any reason, unless the express intent of the trustor was that only the designated person could be the trustee or that, given the nature of the trust, only the designated person could be the trustee. In such cases, the provisions of § 3352l of this title.
History —Aug. 31, 2012, No. 219, § 21.
2023 Laws of Puerto Rico › TITLE THIRTY-TWO - Code of Civil Procedure (§§ 1 — 3576) › Subtitle 4 - Special Legal Proceedings Law (§§ 2241 — 3355a) › PART V - Other Actions (§§ 2951 — 3355a) › Chapter 266 - Trust Act (§§ 3351 — 3355a) › Subchapter II - Private Trusts (§§ 3352 — 3353aa) › § 3352o - Powers of the trustee

The trustee may only exercise the powers:
(a) Granted by the trustor to him in the trust instrument; and
(b) granted by law, provided they are necessary and convenient to fulfill the purposes of the trust, unless such powers are prohibited by the terms thereof.
If the trustor grants the trustee discretion in the exercise of a particular power, such exercise shall not be subject to judicial review unless it is to prevent abuse of the discretion granted.
History —Aug. 31, 2012, No. 219, § 22.
2023 Laws of Puerto Rico › TITLE THIRTY-TWO - Code of Civil Procedure (§§ 1 — 3576) › Subtitle 4 - Special Legal Proceedings Law (§§ 2241 — 3355a) › PART V - Other Actions (§§ 2951 — 3355a) › Chapter 266 - Trust Act (§§ 3351 — 3355a) › Subchapter II - Private Trusts (§§ 3352 — 3353aa) › § 3352p - Powers of disposition

Upon acceptance of the designation, the trustee may dispose of or encumber the trust property when the purposes of the trust so warrant without the need for the consent of the trustor or the beneficiary, unless there was an agreement to the contrary. The trustee is empowered to take any actions as appropriate to defend the trust property against third parties as well as against the beneficiary.
History —Aug. 31, 2012, No. 219, § 23.
2023 Laws of Puerto Rico › TITLE THIRTY-TWO - Code of Civil Procedure (§§ 1 — 3576) › Subtitle 4 - Special Legal Proceedings Law (§§ 2241 — 3355a) › PART V - Other Actions (§§ 2951 — 3355a) › Chapter 266 - Trust Act (§§ 3351 — 3355a) › Subchapter II - Private Trusts (§§ 3352 — 3353aa) › § 3352q - Powers of administration

With regards to the administration of the trust, the trustee shall also represent the trust and have the power to:
(a) Accept additions to the trust property;
(b) continue the business or other enterprise and incorporate, dissolve, or otherwise changing the form of business organization;
(c) make final and binding decisions regarding what constitutes trust principal and what constitutes trust income;
(d) invest and reinvest the trust money, while ensuring to reduce risk through investment diversification, unless it is not prudent under the circumstances; deposit trust money in any bank, even when the bank selected is operated by the trustee;
(e) administer, develop, improve, exchange, partition, or modify any property of the trust or disclaim any interest therein; make any necessary ordinary or extraordinary improvements in and repairs to the buildings held under the trust, or demolish improvements, and erect new structures or make new improvements;
(f) insure the property of the trust against damage or loss, and insures the trustee against liability from third parties.
(g) enter into leasing contracts, even though these may extend beyond the duration of the trust;
(h) take loans to be paid with the assets of the trust or otherwise; advance his own money for the protection of the trust and to pay for expenses, losses, and liabilities incurred in the administration of the trust, which advance plus the interest thereon shall give rise to a lien against the trust property for which the beneficiary shall be chargeable; credit receipts or charge expenditures to income or principal in accordance with the law; charge the trust for his compensation or expense reimbursements in accordance with §§ 3352v and 3352w of this title;
(i) pay or contest any claim, settle a claim by and against the trust through arbitration, mediation, or otherwise; release, in whole or in part, a claim belonging to the trust, insofar as such claim is uncollectible or has been satisfied, and to pay taxes of any kind;
(j) contract with attorneys, accountants, investment advisors and agents, even when the same are somehow associated to the trustee to provide the trustee with advice and assistance in the discharge of administrative duties and to hire agents to carry out administrative duties rather than acting personally;
(k) prosecute or defend an action, claim, or judicial proceeding to protect the trust and trust property and the trustee and the trustee’s property in the performance of the trustee’s duties; and
(l) sign and deliver instruments as necessary or convenient in the performance of the trustee’s duties.
History —Aug. 31, 2012, No. 219, § 24.
2023 Laws of Puerto Rico › TITLE THIRTY-TWO - Code of Civil Procedure (§§ 1 — 3576) › Subtitle 4 - Special Legal Proceedings Law (§§ 2241 — 3355a) › PART V - Other Actions (§§ 2951 — 3355a) › Chapter 266 - Trust Act (§§ 3351 — 3355a) › Subchapter II - Private Trusts (§§ 3352 — 3353aa) › § 3352r - Power to deviate from the terms of the trust

The trustee has the power to deviate from the terms of the trust upon authorization of the court, in the following cases:
(a) If, compliance therewith, because of circumstances not known to or anticipated by the trustor, would defeat or substantially impair accomplishment of trust purposes, in which case, the court may direct or permit the trustee to do acts which are not authorized or are forbidden by the terms of the trust. However, if such circumstances were known to or should have been known to the trustor, the trustor shall be liable if he fails to apply court authorization to deviate;
(b) if compliance with any instruction becomes unlawful;
(c) if compliance with any instruction becomes impossible;
(d) if following the instructions may cause serious damage to the trust property or poses a risk of loss or harm thereto.
The trustee may deviate from the terms of the trust, as provided in subsection (a) of this section, without first obtaining the authorization of the court if there is an emergency or if the trustee reasonably believes that there is an emergency and before deviating the trustee had no opportunity to apply to the court for permission to deviatae.
History —Aug. 31, 2012, No. 219, § 25.
2023 Laws of Puerto Rico › TITLE THIRTY-TWO - Code of Civil Procedure (§§ 1 — 3576) › Subtitle 4 - Special Legal Proceedings Law (§§ 2241 — 3355a) › PART V - Other Actions (§§ 2951 — 3355a) › Chapter 266 - Trust Act (§§ 3351 — 3355a) › Subchapter II - Private Trusts (§§ 3352 — 3353aa) › § 3352s - Exercise of powers when there is more than one trustee

If a trust has more than one trustee, all trustees must exercise the powers conferred, except as otherwise provided in the trust instrument. However, if the co-trustees fail to reach unanimous agreements, co-trustees may act according to the majority.
If one or more of them rejects the designation, or for whatever reason ceases to be a trustee after having accepted the trusteeship, powers shall be exercised by the remaining trustee or trustees until a successor is designated in accordance with Section 19, except as otherwise provided in the terms of the trust.
History —Aug. 31, 2012, No. 219, § 26.
2023 Laws of Puerto Rico › TITLE THIRTY-TWO - Code of Civil Procedure (§§ 1 — 3576) › Subtitle 4 - Special Legal Proceedings Law (§§ 2241 — 3355a) › PART V - Other Actions (§§ 2951 — 3355a) › Chapter 266 - Trust Act (§§ 3351 — 3355a) › Subchapter II - Private Trusts (§§ 3352 — 3353aa) › § 3352u - Self-dealing prohibition

The trustee may not lend trust funds to himself or his dependents or partners, nor buy trust property for himself or a third-party, either in private sale or public auction, without prejudice to the trustee’s authorization in the trust instrument.
History —Aug. 31, 2012, No. 219, § 28.
2023 Laws of Puerto Rico › TITLE THIRTY-TWO - Code of Civil Procedure (§§ 1 — 3576) › Subtitle 4 - Special Legal Proceedings Law (§§ 2241 — 3355a) › PART V - Other Actions (§§ 2951 — 3355a) › Chapter 266 - Trust Act (§§ 3351 — 3355a) › Subchapter II - Private Trusts (§§ 3352 — 3353aa) › § 3352v - Compensation

The trustor may set the trustee’s compensation in the trust instrument. If the terms of the trust do not specify the trustee’s compensation, the court shall set the turstee’s compensation, if the trustor does not prohibit it, taking into account the nature of the trust, the trust property value, and the relevance of the trustee’s duties.
The trustee may withhold trust property for compensation and justify it in the next account, unless otherwise provided in the trust instrument. However, if the trustee fails to comply with his fiduciary duties, the court in its discretion may deny him all compensation, or allow more or less compensation.
History —Aug. 31, 2012, No. 219, § 29.
2023 Laws of Puerto Rico › TITLE THIRTY-TWO - Code of Civil Procedure (§§ 1 — 3576) › Subtitle 4 - Special Legal Proceedings Law (§§ 2241 — 3355a) › PART V - Other Actions (§§ 2951 — 3355a) › Chapter 266 - Trust Act (§§ 3351 — 3355a) › Subchapter II - Private Trusts (§§ 3352 — 3353aa) › § 3352w - Indemnity for expenses incurred

A trustee is entitled to indemnity from the trust property for expenses properly incurred in the administration of the trust. The trustee may also be indemnified as provided by the trustor.
If the trust property is not sufficient to indemnify a trustee for expenses properly incurred by him in the administration of a trust, a beneficiary shall not be personally liable to the trustee, unless otherwise agreed between them.
The beneficiary shall be personally liable to the trustee for expenses duly incurred during the administration of the trust if, being entitled to indemnity, the trustee transfers trust property to the trust without deducting indemnifiable expenses, but only up to the amount of the value of the transferred assets, unless the trustee had expressed his intent to waive indemnity.
History —Aug. 31, 2012, No. 219, § 30.
2023 Laws of Puerto Rico › TITLE THIRTY-TWO - Code of Civil Procedure (§§ 1 — 3576) › Subtitle 4 - Special Legal Proceedings Law (§§ 2241 — 3355a) › PART V - Other Actions (§§ 2951 — 3355a) › Chapter 266 - Trust Act (§§ 3351 — 3355a) › Subchapter II - Private Trusts (§§ 3352 — 3353aa) › § 3352x - Non-reimbursable expenses

If an expense is not properly incurred in the administration of a trust, a trustee shall not be entitled to indemnity from the trust property, unless:
(a) The trustee has conferred a benefit upon trust property, in which case the indemnity shall only be made to the extent of the benefit conferred:
(b) the transaction in which the expense is incurred is of such a character that the beneficiary would be in a position either to reject or accept it, and he would have accepted it, in which case the trustee is entitled to indemnity for the full amount of the expense.
The provision in the preceding paragraph shall also apply to any contractual or tort liability in which the trustee may have incurred in the administration of the trust.
History —Aug. 31, 2012, No. 219, § 31.
2023 Laws of Puerto Rico › TITLE THIRTY-TWO - Code of Civil Procedure (§§ 1 — 3576) › Subtitle 4 - Special Legal Proceedings Law (§§ 2241 — 3355a) › PART V - Other Actions (§§ 2951 — 3355a) › Chapter 266 - Trust Act (§§ 3351 — 3355a) › Subchapter II - Private Trusts (§§ 3352 — 3353aa) › § 3352y - Resignation of trustee

Upon acceptance of trusteeship, a trustee may resign, upon written notice to the beneficiary and the cotrustees, if any, or with the approval of the court or the consent of all beneficiaries.
The court may authorize such resignation insofar as it does not prove detrimental to the administration of the trust, or if compelling him to carry out such duties could prove unreasonably onerous to the trustee.
History —Aug. 31, 2012, No. 219, § 32.
2023 Laws of Puerto Rico › TITLE THIRTY-TWO - Code of Civil Procedure (§§ 1 — 3576) › Subtitle 4 - Special Legal Proceedings Law (§§ 2241 — 3355a) › PART V - Other Actions (§§ 2951 — 3355a) › Chapter 266 - Trust Act (§§ 3351 — 3355a) › Subchapter II - Private Trusts (§§ 3352 — 3353aa) › § 3352z - Grounds for removal of the trustee

The court may remove a trustee on its own initiative or at the request of any person authorized therefor under the terms of the trust:
(a) If the trustee’s own interests are incompatible with the purposes of the trust;
(b) if the trustee misappropriated funds, committed fraud, or was negligent in the administration of trust property; or
(c) because of disability or unfitness of the trustee.
History —Aug. 31, 2012, No. 219, § 33.
2023 Laws of Puerto Rico › TITLE THIRTY-TWO - Code of Civil Procedure (§§ 1 — 3576) › Subtitle 4 - Special Legal Proceedings Law (§§ 2241 — 3355a) › PART V - Other Actions (§§ 2951 — 3355a) › Chapter 266 - Trust Act (§§ 3351 — 3355a) › Subchapter II - Private Trusts (§§ 3352 — 3353aa) › § 3353 - Beneficiary

The beneficiary is a natural or juridical person, government entity, or partnership that benefits from the income, the principal, or both. It may also be a person who does not exist at the time the trust was created, but is expected to exist within the term established in § 3351e of this title.
History —Aug. 31, 2012, No. 219, § 34.
2023 Laws of Puerto Rico › TITLE THIRTY-TWO - Code of Civil Procedure (§§ 1 — 3576) › Subtitle 4 - Special Legal Proceedings Law (§§ 2241 — 3355a) › PART V - Other Actions (§§ 2951 — 3355a) › Chapter 266 - Trust Act (§§ 3351 — 3355a) › Subchapter II - Private Trusts (§§ 3352 — 3353aa) › § 3353a - Types of beneficiary

The beneficiary of income is a distributee of periodical income or the person in the interest of whom such income is accumulated.
The beneficiary of principal is the person who, upon the termination of the trust, shall receive the principal.
History —Aug. 31, 2012, No. 219, § 35.
2023 Laws of Puerto Rico › TITLE THIRTY-TWO - Code of Civil Procedure (§§ 1 — 3576) › Subtitle 4 - Special Legal Proceedings Law (§§ 2241 — 3355a) › PART V - Other Actions (§§ 2951 — 3355a) › Chapter 266 - Trust Act (§§ 3351 — 3355a) › Subchapter II - Private Trusts (§§ 3352 — 3353aa) › § 3353b - Capacity of the beneficiary

A beneficiary may be a natural or juridical person, government entity, or partnership that may or may not exist when the trust was created; in this last case, sufficient circumstances must be provided to ascertain the beneficiary.
The trustor may be a beneficiary of the trust, even if the trustor is the sole beneficiary.
The trustee may be a beneficiary; provided, that the trustee is not the sole beneficiary or, if the trustee is the sole beneficiary, the trust shall have at least one more designated trustee.
The members of a defined class of persons may be trust beneficiaries.
History —Aug. 31, 2012, No. 219, § 36.
2023 Laws of Puerto Rico › TITLE THIRTY-TWO - Code of Civil Procedure (§§ 1 — 3576) › Subtitle 4 - Special Legal Proceedings Law (§§ 2241 — 3355a) › PART V - Other Actions (§§ 2951 — 3355a) › Chapter 266 - Trust Act (§§ 3351 — 3355a) › Subchapter II - Private Trusts (§§ 3352 — 3353aa) › § 3353c - Multiple beneficiaries; successors

In a single trust, the trustor may designate one or more beneficiaries and such successors as the trustor may wish in case that the beneficiary cannot or does not accept the trust, or having accepted it, dies before the same is executed.
If two or more beneficiaries have been designated, they shall receive equal benefits, unless otherwise provided in the trust instrument.
History —Aug. 31, 2012, No. 219, § 37.
2023 Laws of Puerto Rico › TITLE THIRTY-TWO - Code of Civil Procedure (§§ 1 — 3576) › Subtitle 4 - Special Legal Proceedings Law (§§ 2241 — 3355a) › PART V - Other Actions (§§ 2951 — 3355a) › Chapter 266 - Trust Act (§§ 3351 — 3355a) › Subchapter II - Private Trusts (§§ 3352 — 3353aa) › § 3353d - Remedies available to the beneficiary

The beneficiary, or the legal counsel thereof, may seek in court the appropriate remedies to:
(a) Compel the trustee to perform the trustee’s duties or enjoin the trustee from committing a breach of trust;
(b) compel the trustee to redress the trust for damages caused for breach of trust;
(c) request the appointment of a special fiduciary to take possession of the trust property and administer the trust;
(d) request the removal of the trustee; and
(e) require the trustee to pay any amount of money or to immediately and unconditionally restore trust property to which the beneficiary is entitled under the terms of the trust.
If the trust has multiple beneficiaries, any of them may seek the remedies set forth herein. However, if any of the beneficiaries is incapacitated, or if the beneficiaries are unable to reach an agreement as to the remedy, the court shall grant the remedy deemed more appropriate to achieve the purposes of the trust.
History —Aug. 31, 2012, No. 219, § 38.
2023 Laws of Puerto Rico › TITLE THIRTY-TWO - Code of Civil Procedure (§§ 1 — 3576) › Subtitle 4 - Special Legal Proceedings Law (§§ 2241 — 3355a) › PART V - Other Actions (§§ 2951 — 3355a) › Chapter 266 - Trust Act (§§ 3351 — 3355a) › Subchapter II - Private Trusts (§§ 3352 — 3353aa) › § 3353e - Death of a beneficiary

If a trust has several beneficiaries and one of them dies, the trust instrument shall provide the manner in which to dispose of said interest.
If the trust has several income beneficiaries and one or several beneficiaries of principal who must receive said income upon the death of the last income beneficiary, in the event of death of one of the income beneficiaries, the other income beneficiaries shall accumulate said interest until the last income beneficiary dies, except as otherwise provided in the trust instrument.
History —Aug. 31, 2012, No. 219, § 39.
2023 Laws of Puerto Rico › TITLE THIRTY-TWO - Code of Civil Procedure (§§ 1 — 3576) › Subtitle 4 - Special Legal Proceedings Law (§§ 2241 — 3355a) › PART V - Other Actions (§§ 2951 — 3355a) › Chapter 266 - Trust Act (§§ 3351 — 3355a) › Subchapter II - Private Trusts (§§ 3352 — 3353aa) › § 3353f - Trust income and principal

Trust income is the proceeds, in money or in kind, from the use of the principal.
The trust principal is composed of the trust property allocated by the trustor, or another person with the power to do so, to be delivered to the beneficiary of principal provided that, until they are to be delivered, any income generated by such property is delivered to or accumulated for the income beneficiary.
History —Aug. 31, 2012, No. 219, § 40.
2023 Laws of Puerto Rico › TITLE THIRTY-TWO - Code of Civil Procedure (§§ 1 — 3576) › Subtitle 4 - Special Legal Proceedings Law (§§ 2241 — 3355a) › PART V - Other Actions (§§ 2951 — 3355a) › Chapter 266 - Trust Act (§§ 3351 — 3355a) › Subchapter II - Private Trusts (§§ 3352 — 3353aa) › § 3353g - Credit or charge to trust income or principal

Trust receipts shall be credited and expenditures charged to income or principal, in whole or in part, in the terms of the trust. If the trust does not provide the item to which such receipts and expenditures shall be charged or credited, respectively, it shall be done according to what is just and reasonable to the interest of both beneficiaries and to what an average prudent person would do while administering his own affairs.
However, if the terms of the trust empower the trustee to credit a receipt or charge an expenditure to trust income or principal, or partially to each, failure of the trustee to act in accordance with this chapter shall not entail imprudence or prejudice.
History —Aug. 31, 2012, No. 219, § 41.
2023 Laws of Puerto Rico › TITLE THIRTY-TWO - Code of Civil Procedure (§§ 1 — 3576) › Subtitle 4 - Special Legal Proceedings Law (§§ 2241 — 3355a) › PART V - Other Actions (§§ 2951 — 3355a) › Chapter 266 - Trust Act (§§ 3351 — 3355a) › Subchapter II - Private Trusts (§§ 3352 — 3353aa) › § 3353h - Rights of the income beneficiary

Income beneficiaries are entitled to such income as of the date set by the trustor in the trust instrument or, if such a date has not been set, as of the date in which the property becomes part of the trust principal.
Upon termination of his right to trust income, such beneficiary or his heirs shall be entitled to:
(a) Undistributed income as of the date of termination;
(b) income owed but not paid to the trustee as of the date of termination; and
(c) income in periodic payments, other than corporate distributions, such as rent, interests, and annuities not yet due as of the date of termination and earned on a day-to-day basis.
History —Aug. 31, 2012, No. 219, § 42.
2023 Laws of Puerto Rico › TITLE THIRTY-TWO - Code of Civil Procedure (§§ 1 — 3576) › Subtitle 4 - Special Legal Proceedings Law (§§ 2241 — 3355a) › PART V - Other Actions (§§ 2951 — 3355a) › Chapter 266 - Trust Act (§§ 3351 — 3355a) › Subchapter II - Private Trusts (§§ 3352 — 3353aa) › § 3353i - Trust Advisor—Definition and duties

A trust advisor shall be any person other than a trustee who, under the terms of the trust or through a court order, has a power with respect to a trust, including, but not limited to one or more of the following:
(a) To modify or amend the terms of the trust to achieve favorable tax status or respond to changes in any applicable federal or Puerto Rico laws affecting the trust, including, but not limited to any regulations, guidelines, administrative decisions, or rulings implementing such laws;
(b) To amend or modify the terms of the trust to take advantage of or respond to changes in any applicable federal or Puerto Rico laws affecting, benefitting, or restricting the terms of the trust and administration thereof, including regulations, guidelines, administrative decisions, or rulings implementing such laws;
(c) To appoint a successor trust advisor or successor trustee absent an express or appropriate mechanism, or for the reasons provided in the terms of the trust;
(d) To review and approve a trustee’s trust reports or accountings;
(e) To remove or replace any trust protector on the grounds stated in the trust instrument;
(f) To consent to the actions of a trustee or cotrustee when making distributions in a trust;
(g) To consent to the actions of a trustee or cotrustee regarding investments, property, or other trust assets.
History —Aug. 31, 2012, No. 219, § 43.
2023 Laws of Puerto Rico › TITLE THIRTY-TWO - Code of Civil Procedure (§§ 1 — 3576) › Subtitle 4 - Special Legal Proceedings Law (§§ 2241 — 3355a) › PART V - Other Actions (§§ 2951 — 3355a) › Chapter 266 - Trust Act (§§ 3351 — 3355a) › Subchapter II - Private Trusts (§§ 3352 — 3353aa) › § 3353j - Rights of creditors

Creditors shall have the following rights with regards to the trust’s property, subject matter, or principal:
(a) Except as expressly provided in subsections (b) and (c) of this section, a creditor of the beneficiary of a trust shall have over or with regards to such beneficiary’s interest or the property under said trust those rights that have been expressly granted thereto by the terms of the instrument that creates or defines the trust or by the laws of Puerto Rico.
The provisions of this subsection shall take effect and in no way be limited by the nature or extent of the beneficiary’s interest, whether or not such interest is subject to the discretion of one or more trustees, and even if the beneficiary has taken or is about to take any action.
(b) Any interest in a trust, in trust property, or in income of any of these that is not subject to the rights of a beneficiary’s creditors pursuant to this section shall be exempt from foreclosure, attachment, eviction, auction, and any other remedy or legal proceedings filed by or on behalf of any creditor, including, without any limitation, legal actions or claims against one or more trustees or other beneficiaries seeking a remedy that directly or indirectly affect the beneficiary’s interest, such as, for example and without limitation, an order issued at the request of a creditor or the court itself that could:
(1) Compel the trustee or a beneficiary to notify a creditor about any distribution made or to be made.
(2) Compel the trustee or beneficiary to make a distribution despite the fact that such distributions may or may not be subject to the trustee’s discretion; or
(3) Forbid the trustee or beneficiary from making a distribution despite the fact that such distributions may or may not be subject to the trustee’s discretion.
Except as provided in this chapter or the terms of the trust, no trustee shall be liable to any beneficiary’s creditor for payments, expenses, debts or obligations of such beneficiary.
History —Aug. 31, 2012, No. 219, § 44.
2023 Laws of Puerto Rico › TITLE THIRTY-TWO - Code of Civil Procedure (§§ 1 — 3576) › Subtitle 4 - Special Legal Proceedings Law (§§ 2241 — 3355a) › PART V - Other Actions (§§ 2951 — 3355a) › Chapter 266 - Trust Act (§§ 3351 — 3355a) › Subchapter II - Private Trusts (§§ 3352 — 3353aa) › § 3353k - Liability for breach of trust

A trustee who commits a breach of trust shall be liable for any loss or depreciation of trust property resulting from such breach. The trustee shall also be liable for any profit made by him through breach of trust, of for any profit that would have accrued to the trust property if there had been no breach of trust.
However, a trustee is not liable to a beneficiary for breach of trust if the beneficiary consented to the action or omission constituting the breach, held the trustee harmless, or ratified such action or omission.
History —Aug. 31, 2012, No. 219, § 45.
2023 Laws of Puerto Rico › TITLE THIRTY-TWO - Code of Civil Procedure (§§ 1 — 3576) › Subtitle 4 - Special Legal Proceedings Law (§§ 2241 — 3355a) › PART V - Other Actions (§§ 2951 — 3355a) › Chapter 266 - Trust Act (§§ 3351 — 3355a) › Subchapter II - Private Trusts (§§ 3352 — 3353aa) › § 3353l - Joint liability of trustees

If there is more than one trustee and all trustees commit breach of trust, they shall be held jointly liable to the trust.
History —Aug. 31, 2012, No. 219, § 46.
2023 Laws of Puerto Rico › TITLE THIRTY-TWO - Code of Civil Procedure (§§ 1 — 3576) › Subtitle 4 - Special Legal Proceedings Law (§§ 2241 — 3355a) › PART V - Other Actions (§§ 2951 — 3355a) › Chapter 266 - Trust Act (§§ 3351 — 3355a) › Subchapter II - Private Trusts (§§ 3352 — 3353aa) › § 3353n - Immunity of successor trustee

Except as otherwise provided in the terms of the trust or a court order, a successor trustee appointed under the terms and conditions of the trust or by the court shall not be required or have the duty to review the records, accounts, accounting, or reports of a predecessor trustee, or to inquire about the actions or omissions of the predecessor trustee. Nor shall the trustee be liable for any fault or failure to request or obtain any remedy or redress for any action or omission of a predecessor trustee. The successor trustee shall only be liable for the property, assets, or investments handed over to him by the predecessor trustee, the trustor or trustees, or the beneficiary or beneficiaries. The successor trustee shall have all the powers and discretion granted to predecessor trustees under the terms of the trust.
History —Aug. 31, 2012, No. 219, § 48.
2023 Laws of Puerto Rico › TITLE THIRTY-TWO - Code of Civil Procedure (§§ 1 — 3576) › Subtitle 4 - Special Legal Proceedings Law (§§ 2241 — 3355a) › PART V - Other Actions (§§ 2951 — 3355a) › Chapter 266 - Trust Act (§§ 3351 — 3355a) › Subchapter II - Private Trusts (§§ 3352 — 3353aa) › § 3353o - Reimbursement and repayment between cotrustees

If two trustees are liable to the beneficiary due to breach of trust, a trustee is entitled to a proportional contribution from the other trustee unless:
(a) One trustee was substantially more at fault than the other, in which case the former shall not be entitled to contribution from the other trustee;
(b) one trustee received personal benefit from the breach of trust, in which case such trustee shall reimburse the other trustee to the extent of the benefit received.
If a trustee committed the breach of trust in bad faith, such trustee shall not be entitled to a proportional contribution or reimbursement from cotrustees.
A trustee who acts in bad faith shall not be entitled to a contribution or reimbursement.
History —Aug. 31, 2012, No. 219, § 49.
2023 Laws of Puerto Rico › TITLE THIRTY-TWO - Code of Civil Procedure (§§ 1 — 3576) › Subtitle 4 - Special Legal Proceedings Law (§§ 2241 — 3355a) › PART V - Other Actions (§§ 2951 — 3355a) › Chapter 266 - Trust Act (§§ 3351 — 3355a) › Subchapter II - Private Trusts (§§ 3352 — 3353aa) › § 3353p - Attachment or execution of the beneficiary’s interest

The beneficiary’s creditors may attach or execute the beneficiary’s interest to satisfy claims against the beneficiary, unless:
(a) The trust property is non-attachable according to the law;
(b) the trustor provided for the prohibition of voluntary or involuntary alienation of the interest of a beneficiary who is entitled to receive the principal at a future date;
(c) the trust determines that the interest of the income beneficiary shall end if the beneficiary’s creditors attach or execute such interest or if the same is adjudicated in bankruptcy proceedings;
(d) the trust was created for a group of people as beneficiaries and the interest of each one is non-severable from the others;
(e) the terms of the trust provide that the trustee shall allocate portions of income or principal as are necessary for the education or support of the beneficiary;
(f) the interest of the beneficiary is a highly personal interest; or
(g) the trust has a spendthrift provision setting forth that the income beneficiary’s interest shall not be subject to voluntary or involuntary transfer, except in those circumstances and to the extent set forth in § 3353q of this title.
History —Aug. 31, 2012, No. 219, § 50.
2023 Laws of Puerto Rico › TITLE THIRTY-TWO - Code of Civil Procedure (§§ 1 — 3576) › Subtitle 4 - Special Legal Proceedings Law (§§ 2241 — 3355a) › PART V - Other Actions (§§ 2951 — 3355a) › Chapter 266 - Trust Act (§§ 3351 — 3355a) › Subchapter II - Private Trusts (§§ 3352 — 3353aa) › § 3353q - Ineffectiveness of spendthrift provision with respect to the income beneficiary

Notwithstanding a spendthrift provision included in a trust as provided in subsection (g) of § 3353p of this title, an income beneficiary’s creditor or assignee may reach the beneficiary’s income interest by means of attachment or execution in the following circumstances and extension:
(a) Income earned or to be earned in the future in excess of $36,000 annually shall be subject to attachment or execution by an income beneficiary’s creditor or assignee.
(b) When the creditor’s claim to his assignee is for: (1) the support of the beneficiary’s spouse or child; (2) the payment of alimony or child support ordered by court for a beneficiary’s former spouse or child; (3) the payment of essential services or goods rendered or delivered to the beneficiary; (4) the payment of a judgment against the beneficiary involving tort liability, the court may order the trustee to satisfy the claim in question, or part thereof, against the amount exempt in subsection (a) of this section when, in his judgment, justice so warrants, taking into account all the circumstances, including the trustor’s express intention.
History —Aug. 31, 2012, No. 219, § 51.
2023 Laws of Puerto Rico › TITLE THIRTY-TWO - Code of Civil Procedure (§§ 1 — 3576) › Subtitle 4 - Special Legal Proceedings Law (§§ 2241 — 3355a) › PART V - Other Actions (§§ 2951 — 3355a) › Chapter 266 - Trust Act (§§ 3351 — 3355a) › Subchapter II - Private Trusts (§§ 3352 — 3353aa) › § 3353r - Debt of the beneficiary

The beneficiary’s interest shall be reached to fulfill his obligations when:
(a) The beneficiary has an outstanding debt with the trustor-testator, unless the testator had cancelled the debt or expressed his intention to allow the beneficiary to enjoy his interest in the trust despite not having satisfied the debt;
(b) the beneficiary has an outstanding debt with the trustee in his capacity as such. In case of a debt with the trustee in the latter’s personal capacity but resulting from the administration of the trust, the beneficiary’s interest shall not be reached unless otherwise agreed on with the trustee; or
(c) one of the beneficiaries has an obligation to the others for misappropriation or any other kind of intervention with the trust property resulting in loss.
History —Aug. 31, 2012, No. 219, § 52.
2023 Laws of Puerto Rico › TITLE THIRTY-TWO - Code of Civil Procedure (§§ 1 — 3576) › Subtitle 4 - Special Legal Proceedings Law (§§ 2241 — 3355a) › PART V - Other Actions (§§ 2951 — 3355a) › Chapter 266 - Trust Act (§§ 3351 — 3355a) › Subchapter II - Private Trusts (§§ 3352 — 3353aa) › § 3353s - Actions of trustee against third-parties

The trustee may initiate actions against third parties on his own motion if the trustee holds the trust property. However, if the trustee unduly fails to initiate an action, the beneficiary may do so joining the trustee as a co-defendant.
History —Aug. 31, 2012, No. 219, § 53.
2023 Laws of Puerto Rico › TITLE THIRTY-TWO - Code of Civil Procedure (§§ 1 — 3576) › Subtitle 4 - Special Legal Proceedings Law (§§ 2241 — 3355a) › PART V - Other Actions (§§ 2951 — 3355a) › Chapter 266 - Trust Act (§§ 3351 — 3355a) › Subchapter II - Private Trusts (§§ 3352 — 3353aa) › § 3353t - Acquisition of trust property title

Whenever a trustee transfers or alienates trust property without committing breach of trust, the third party gains clear title from the trust and is not held liable to the beneficiary.
If the trustee, in breach of trust, transfers or alienates trust property to a third party for valuable consideration, the latter shall hold clear title from the trust and shall not be liable to the beneficiary; provided, that such third party was unaware of the trustee’s breach of trust or the unlawfulness of the transaction whereby such assets were acquired.
If the trustee, in breach of trust, transfers or alienates trust property to a third party who did not acquire such property in good faith, in accordance with the provisions of the previous paragraph, and such third party later transfers his interest to a purchaser in good faith, the latter shall hold clear title from the trust.
History —Aug. 31, 2012, No. 219, § 54.
2023 Laws of Puerto Rico › TITLE THIRTY-TWO - Code of Civil Procedure (§§ 1 — 3576) › Subtitle 4 - Special Legal Proceedings Law (§§ 2241 — 3355a) › PART V - Other Actions (§§ 2951 — 3355a) › Chapter 266 - Trust Act (§§ 3351 — 3355a) › Subchapter II - Private Trusts (§§ 3352 — 3353aa) › § 3353u - Liability of a third-party acquirer in bad faith who has not disposed of the assets

If the trustee, in a breach of trust, transfers or alienates trust property to a third-party acquirer in bad faith who has not subsequently disposed thereof, said acquirer may be compelled to:
(a) Return such assets to the trust along with the income earned therefrom;
(b) pay the value the assets had upon receipt thereof; or
(c) in the event that said third party refused to return the assets to the trust, pay the value thereof as of the time of such refusal, plus interest.
The beneficiary shall encumber the assets, or the proceeds of their disposition, to guarantee they can be reclaimed.
History —Aug. 31, 2012, No. 219, § 55.
2023 Laws of Puerto Rico › TITLE THIRTY-TWO - Code of Civil Procedure (§§ 1 — 3576) › Subtitle 4 - Special Legal Proceedings Law (§§ 2241 — 3355a) › PART V - Other Actions (§§ 2951 — 3355a) › Chapter 266 - Trust Act (§§ 3351 — 3355a) › Subchapter II - Private Trusts (§§ 3352 — 3353aa) › § 3353v - Liability of a third-party acquirer in bad faith who has disposed of the assets

If, under the same circumstances of § 3353u of this title, the third-party acquirer in bad faith has disposed of the assets, said acquirer may be compelled to:
(a) Return the proceeds of their sale and the income received from such assets and the product of their sale;
(b) return the proceeds of their sale with interest, plus the income received before the sale thereof;
(c) pay the value of the assets as of the time the judgment was entered, plus the income generated therefrom; or
(d) pay the value of the assets as of the time of disposability thereof, plus interest.
The beneficiary shall encumber the assets, or the proceeds of their disposition, to guarantee they can be reclaimed.
History —Aug. 31, 2012, No. 219, § 56.