Specializing In Loans To Trusts And Estates

California Trust And Estate Lender for Proposition 58. Call 877-464-1066

Trust Loans

We specialize in loans to trusts and estates. When a child beneficiary is inheriting a parent’s home as his or her share of a trust distribution or estate and they want to take advantage of Proposition 19 or Proposition 58 to avoid property tax reassessment, we can provide the financing needed for an equal distribution to be made. If you are hoping to keep your parent’s low Proposition 13 tax base and your attorney is recommending a 3rd party trust loan, we can assist you. We are one of the only California lenders who will lend directly to an irrevocable trust or probate estate. We specialize in providing the loans needed to take advantage of a Prop 19 property tax benefit and reassessment exclusion. On average we save our clients over $6,400 per year in property taxes. We are a direct lender and can close your loan in as little as 7 days. You can expect:

  • An easy application process
  • Flexible underwriting guidelines (No credit score minimums)
  • The highest level of customer service

Please complete the following form to have one of our knowledgeable representatives contact you regarding our Trust & Estate Mortgages, or call us at 877-464-1066 for immediate assistance.




Additional Trust & Estate Loan Information

Private Money Lender - Loans to Trusts, Probate and Estates

Common Questions

What does Commercial Loan Corporation do?

We provide financing to illiquid trusts for the non pro rata distributions of those trusts. Our borrowers are trusts that hold real property desired by one of the children-beneficiaries. These acquiring beneficiaries are hoping to keep the property tax rate (Proposition 13) paid by their parents. When there is a shortage of liquid assets to make an even distribution, the trust must borrow money to make an even distribution with the acquiring beneficiary taking the real property encumbered by our loan. This procedure is required so the acquiring beneficiary may obtain the parent to child transfer exclusion for reassessment of property taxes afforded by Proposition 58 and Proposition 19.

What is Proposition 58?

Proposition 58 became effective on November 6, 1986 and with certain limitations allows for the exclusion for reassessment of property taxes on transfers between parents and children. Proposition 193 provides some of the same exclusions as Proposition 58 for Grandparents and Grandchildren when all of the qualifying parents of the Grandchildren are deceased.

What is Proposition 19?

California Proposition 19 is the Home Protection for Seniors, Severely Disabled, Families, and Victims of Wildfire or Natural Disasters Act. Prop 19 was approved by California voters on November 3, 2020. California Proposition 19 takes effect on February 16, 2021. Proposition 19 modified California Proposition 58 by requiring that the child or children use the residence as their principal residence in order to avoid property tax reassessment. Additionally Prop 19 put a cap of $1,000,000 on the amount of property value that can be excluded from reassessment. As of February, 2023 the California Proposition 19 benefit cap has been increased to $1,022,600.

Why can’t the acquiring beneficiary lend the money to the trust when needed to make an even distribution?

The Board of Equalization (BOE) views this as a child buying out another child as opposed to a parent to child transfer. The exclusion for reassessment requires a transfer from parent to child.

Why can’t the acquiring beneficiary go to a conventional lender to get a loan?

The acquiring beneficiary does not own the property. The trust owns the property. Almost all conventional lenders are opposed to lending to trusts. They will typically ask the trustee to put the title in the name of the acquiring beneficiary before funding their loan. If this is done before the even distribution of the trust, the exclusion for reassessment will usually be denied.

Does Commercial Loan Corporation ask for a personal guarantee?

We do not ask for a personal guarantee any longer. It is our understanding that the BOE will view a personal guarantee by the acquiring beneficiary the same as the acquiring beneficiary putting in money to equalize the distribution of the trust. In other words, the BOE views it as a child buying out another child as opposed to a parent to child transfer.

Does Commercial Loan Corporation charge a prepayment penalty on their loans?

We do not charge any prepayment penalties. Many of our borrowers have the money necessary to buy out their sibling(s), but need to follow the procedure required to obtain exclusion for reassessment of the property taxes. We allow them to pay all or most of the balance off immediately to save money in interest charges. If they pay down the balance, we lower their payments to cover just the interest that accrues over a 30 day period. Some of our clients want to wait until the exclusion for reassessment is approved before paying the loan off completely.

What if the acquiring beneficiary does not have the money to pay off the loan to Commercial Loan Corporation?

Our trust loan terms are generally twelve (12) months. The acquiring beneficiary will need to get a conventional refinance to pay us off. We require a pre-approval letter from a known lender before funding our loan. If an acquiring beneficiary wants us to process his/her refinance, we are happy to provide this service.

Is it always smart to get a 3rd party trust loan?

It depends on the property tax savings versus the costs of getting a 3rd party loan. We provide a calculator on our website that will help estimate the property tax savings and the loan costs. The calculator will estimate how long one must hold onto the property to have the property tax savings cover all the loan costs. If the property is not going to be held long enough to cover the costs of the loan, it may not make financial sense to obtain a 3rd party loan unless a new primary residence is purchased and one uses Proposition 19 to transfer the tax base from the parents’ home to the new home.

Please look through our website; start the loan process here or call us at 877-464-1066.