Commercial Loan Corporation is the featured sponsor for tonight’s Orange County Estate Planning Council Event. Mike Riggs and Tanis Alonso will be on hand to answer finance related questions pertaining to California Proposition 58, Parent to Child Real Estate Transfers, Trust Loans, and avoiding property tax reassessment on an inherited property. Tonight’s Estate Planning council is focusing on INGs and Spousal Lifetime Access Non-Grantor Trusts (SLANTs) PLUS IRC 678 and the Beneficiary Deemed Owner Trust. The event will be from 4:30pm – 8:00pm at the Santa Ana Country Club in Santa Ana, Ca. Tonight’s Orange County Estate Planning Council speaker is Edwin Morrow from US Bank Private Wealth Management.
The presentation will be focusing on INGs and Spousal Lifetime Access Non-Grantor Trusts (SLANTs) – Not Just for State Income Tax Avoidance: How “INGs” and “SLANTs” Can Save State Income Taxes and Why Tax Reform Makes Them Even More Powerful. This segment of the presentation will be from 4:30 to 5:30 PM . IRC 678 and the Beneficiary Deemed Owner Trust will be presented from 7PM to 8 PM focusing on income tax benefits of such trusts include much simpler tax reporting, lower tax brackets, capital gains tax exclusions for residences, much more favorable Section 179 expensing, disregarded transactions, firmer S corporation status, charitable deductions for business income, more favorable life insurance and annuity rules, better treatment for capital losses, and many more benefits often overlooked. Asset protection for such trusts, while seemingly substandard, is hardly a disaster. Any ill effects of a withdrawal power can not only be counteracted but even turned into an advantage over other trust designs. A 50-state comparison chart will be included which summarizes the various state asset protection statutes and law around powers of withdrawal and lapses.
Both of these presentations qualify for 1-hour of CE for MCLE, CPA, Professional Fiduciary and Trust Officers.
Commercial Loan Corporation is a California Lender specializing in Loans to Irrevocable Trusts. We lend the cash you need to distribute a trust and receive your proposition 58 exclusion from property tax reassessment on an inherited home.
Loans to Irrevocable Trusts in California
When it comes time to distribute an irrevocable trust and funds are needed to make an equal distribution, you will find that most lenders are unwilling to lend on real estate that is held in a trust. This becomes extremely problematic if you plan on filing for a California Proposition 58 exclusion from property tax reassessment on real estate being inherited from a parent.
One of the requirements to qualify for an exclusion from property reassessment is for the trust to make an equal distribution of the trust assets to all child beneficiaries. Often times that is not possible to do if one of the trust assets is an expensive piece of California real estate. In the situation where a home is creating an unequal trust distribution, a mortgage or third party loan must be taken out to infuse the trust with enough cash so that the equal distribution can be made. That way one child receives the encumbered property while others receive cash and or other assets, equalizing the distribution of the trust. The state does not allow for the acquiring beneficiary to use their own funds to equalize the distribution. Doing so would create a sibling to sibling buyout and make the beneficiary ineligible for an exclusion from reassessment. That is why a third party loan is required. The problem is that most California lenders will require that the property be removed from the trust in order to lend on the home. Unfortunately, once that is done, you have jeopardized your ability to qualify for the Prop 58 property tax reassessment exclusion since the assets of the trust were distributed unevenly at that point.
The solution is to have a mortgage placed on the home while the property is still held in the irrevocable trust. That is where Commercial Loan Corporation comes in. We are a leading California lender of mortgages for homes held in an irrevocable trust. What makes us unique is that we lend to the trust as opposed to a beneficiary; allowing the beneficiary to qualify for the California Proposition 58 exclusion from property tax reassessment on a home inherited from a parent.
If you, a client, or someone that you know is in need of a loan to a trust, please have them call us at 877-464-1066. We specialize in the process and can answer any questions that they may have. We can also provide them with a free loan benefit proposal. The proposal compares the cost of the trust loan to the benefits received from a Prop 58 parent to child property transfer, ensuring that the trust loan is beneficial. We can also determine how much additional funds you would receive by maximizing your trust distribution. On average we help clients distribute an additional $42,000 to beneficiaries my maximizing their trust distribution.
As is typical with Autumn Skerritt our Operations Manager; she went above and beyond when it came to meeting the expectations of a client! If fact, the client was so appreciative of Autumn, she sent her a bouquet of flowers and a very thoughtful card to thank her!
Autumn assisted her client in processing a complex trust loan where an old lien needed to be cleared from title before the loan could close. She helped the client make an equal distribution on their trust. This allowed them to preserve their parents property tax base on the inherited home, saving them thousands of dollars each year in property taxes. Autumn stayed in contact with the client throughout the entire trust loan process and did everything she could to help them close as quickly as possible! Her hard word and dedication to her clients needs sets her apart from other people in the industry. Those are just a few of the qualities that makes Autumn such a a pleasure for her clients and coworkers to work with.
Thank you for everything that you do for your clients and our company Autumn!
Trust Loans Booth at the California NAELA Joint Chapters 2019 Summit in San Francisco
Loans to Trusts & Estates
Mike Riggs, Senior Account Executive for Commercial Loan Corporation is attending this years California NAELA Joint Chapters 2019 Summit in San Francisco. If you are an attendee and have any questions on our California Proposition 58 safe loans for Trusts & Estates, please visit Mike at our booth. He can review our Trust Loan Benefit Calculator with you and determine if a trust loan makes sense for your client. As you can see from the sign in the photo above, on average we save our clients $6,200 per year in property taxes by helping them qualify for a parent to child transfer and exclusion from property reassessment.
If you are not attending the California NAELA 2019 Summit, but would like more information on our Proposition 58 third party loans to trust and estates, or would like information on maximizing your trust distribution; please call us at 877-464-1066. We can answer any questions that you might have provide you with a free benefit analysis. On average we help clients distribute an additional $41,000 in proceeds to beneficiaries!
Call Us At 877-464-1066 For Trust Loan Information