2023 Laws of Puerto Rico › TITLE THIRTEEN - Taxation and Finance (§§ 1 — 33423) › Subtitle 17 - Internal Revenue Code of 2011 (§§ 30001 — 33423) › PART III - Decedent’s Estate and Gifts (§§ 31001 — 31176) › Chapter 1025 - Tax Returns, Payment of Taxes, Procedure and Administration (§§ 31121 — 31176) › Subchapter D - Tax Liens (§§ 31161 — 31165) › § 31165 - Prohibited actions unless document crediting lien cancellation is submitted

(a) Property comprising decedent’s estate. — Regarding any property subject to the lien imposed in § 31161 of this title on account of having been transferred as inheritance, bequest or legacy, in connection to which a lien cancellation certificate as provided in § 31162 of this title has not been submitted, the following rules shall be observed:
(1) Courts, notaries, and property registrars. — Except in the specific cases authorized in §§ 31128 and 31121 of this title, no court shall approve the division or distribution, sale, surrender, assignment or mortgage foreclosure without there being a deduction, to be deposited with the court, of the proceeds of the auction, in favor of the Secretary, the amount of the taxes that he/she has determined or determines to be attributable to such property; and no notary shall authorize, issue or certify any document pertaining to a division or distribution, sale, surrender, assignment or mortgage on such property, with the exception from this prohibition of the certification of documents executed before the time of death of the decedent; and no property registrar shall record in any register under his/her care, any notary document, judgment or court action, executed, ruled or issued, in connection with any division or distribution, sale, surrender or mortgage of said property.
(2) Financial institutions. — No financial institution shall surrender to the heirs, legatees or beneficiaries of a decedent the funds in accounts to the name of the deceased, or the deceased and another person jointly, in any amount that exceeds fifteen thousand dollars ($15,000), or twenty-five percent (25%) of the amount of such funds, whichever amount is greater, unless the Secretary authorizes a greater amount pursuant to the provisions in § 31128 of this title, or that a lien cancellation certificate as provided in § 31162 of this title is submitted to the financial institution. For purposes of this section, the term “financial institution” shall include banks, investment trusts, savings and loan associations, brokerage houses or securities firms, and savings and credit unions doing business in Puerto Rico.
(3) Safe deposit boxes. — Any person who, as a main or collateral function within his/her operations, shall be required to keep current, for inspection by and information of the Secretary, a Register with the names and addresses of the persons to whom such safe deposit boxes are leased during every calendar year, which Register shall include the number of each safe deposit box, the date of the lease contract, and in the event that such lease contract has been assigned, the date of assignment and the name and address of the assignee. When dealing with leases made out to two or more persons jointly, he/she shall keep the same information in connection with the co-lessees. Likewise, he/she shall keep a register indicating the date and time in which said person or the lessees open said safe deposit boxes. Such person shall not allow the safe deposit box to be opened by anyone when such safe deposit box is leased by any decedent or by him/her jointly with any other person, without there being an authorized representative of the Secretary present.
(4) Insurance. — No person engaged in the insurance business shall surrender any amount before having obtained authorization from the Secretary, except in the event that the amount to be surrendered does not exceed five thousand dollars ($5,000) or forty percent (40%) of the cash amount of said insurance policy or agreement, whichever amount is greater, or except when the Secretary authorizes that a greater amount be surrendered pursuant to the provisions of § 31128 of this title.
(b) Requirement to notify payments. — The persons listed in clauses (2) and (4) of subsection (a) shall give written notice to the Secretary about payments made under the provisions of such clauses within thirty (30) days following the date each payment is made. Such notice shall include the names and addresses of the persons receiving such payments, the amount paid, and the additional amount, if any, pending payment.
(c) Property transferred by gift. — Regarding any property subject to the lien imposed in § 31161 of this title on account of having been transferred by gift, in connection with which property no lien cancellation certificate as provided in § 31162 of this title is submitted, no registrar shall record in any register under his/her care, any notary instrument, judgment or court action executed, ruled, or issued in connection with any division, distribution, surrender, sale or mortgage on such property.
History —Jan. 31, 2011, No. 1, 2054.05, retroactive to Jan. 1, 2011.