P.R. Laws tit. 13, § 31021
(a) In general.— The gross estate of a decedent shall include, up to the limit established in this subchapter, the value at the time of his/her death of all property or rights over personal or real property, tangible or intangible, wherever situated. The term “gross decedent’s estate” shall include the value of the share that by virtue of the marital property corresponds to the surviving spouse to the sole effect of attributing to such share the proportional portion of debts, encumbrances, and obligations corresponding to the marital property hold him/her responsible under the terms of § 31161 of this title of the tax debts demandable from the decedent pursuant to § 31033(a)(2) of this title. Such estate shall not include payments made and the value of services rendered to the decedent’s beneficiaries pursuant to the provisions of the Federal Social Security Act. Furthermore, it shall not include the total sum of gifts made and reported to the Secretary as of the date of approval of this part; however, it shall include the total sum of any gifts, whether taxable or nontaxable, whose term to report had expired by the time of death of the decedent, has not been reported to the Secretary. When by the time of death of the decedent, the term to report gifts has not expired, such term shall be deemed to be expired and the tax payable within ninety (90) days following the time of death of the donor.
(b) Property transferred with reserved rights in favor of the assignor.— The gross decedent’s estate includes, up to the amount of the share in such estate that is attributable to the decedent, the value of all property that the decedent transferred while living if:
(1) He/she retained possession and use of the property or any part thereof, or if he/she received or was entitled to receive a life annuity or the income from the transferred property, or
(2) he/she retained the right, either alone or in conjunction with any person, to designate the persons who shall possess or enjoy the property, the life annuity, or the income therefrom.
(c) Transfer effective upon time of death.— In the case of transfers that are to become effective at the time of death of the decedent, the value of the transferred property shall be included in the gross decedent’s estate up to the limit of the share of the decedent in such property.
(d) Annuities.— gross decedent’s estate includes the value of an annuity or any other payment receivable by any beneficiary under any formal contract or agreement by reason of surviving the decedent, that is, if under the terms of such contract or agreement an annuity was payable or any other payment was due to the decedent or a beneficiary of the latter, or if the decedent, either alone or in conjunction with another person, owned the right to receive the payment of such an annuity during his/her lifetime or for any period not ascertainable without reference to his/her death or for any period which does not in fact end before the time of death, the payment of such an annuity.
(e) Joint interests.— The gross decedent’s estate includes the value of all property to the extent of the interest therein held as joint tenants by the decedent and any other person and that which has been deposited with any person carrying on the banking business on behalf of the decedent and any other person and payable to either or the survivor, except such part thereof as may be shown to the Secretary to have originally belonged to such other person and never to have been received by the latter from the decedent for less than its value. When proven that the other co-owner acquired from the decedent such property or a part thereof for less than an adequate consideration, be it in money or its equivalent, there shall be excepted only such part of the property’s value as is proportionate to the consideration furnished, be it in money or its equivalent, which was the means for said co-owner to acquire the aforementioned property or part thereof. Furthermore, when any property has been acquired by gift, bequest or inheritance, as a tenancy by the entirety by the decedent and his/her spouse, then the exclusion shall be for one-half of the property’s value, or when so acquired by the decedent and any other person as joint tenants and their interests are not otherwise specified or fixed by law, then the exclusion shall be for the value of a fractional part determined by dividing the property’s value by the number of joint tenants.
(f) International insurer or by an international insurer holding company.— The estate of a nonresident alien decedent shall not include the right to receive income from an international insurer or by an international insurer holding company, or shares, interests, bonds, notes, or other obligations of any of these entities.
History —Jan. 31, 2011, No. 1, § 2022.01, retroactive to Jan. 1, 2011; June 20, 2011, No. 98, § 11.