Mistakes to Avoid When Transferring a Property Tax Base

Irrevocable Trust Loans

California Loans to Trusts

The Right Advice & The Right Trust Loan Lender 

Much to the relief of many Californians who are in the process of inheriting a home from a parent, California Proposition 19 allows you keep a parents low property base on the inherited home in many cases. However, quite often, new homeowners and beneficiaries trigger a property tax hike by accident, and end up facing thousands upon thousands of dollars in property taxes, all due to property tax reassessment. Thankfully that can all be avoided with the right advice and a loan to an irrevocable trust when one is needed. Working with Trust & Estate Attorney’s and Property Tax Consultants, we have helped hundreds of clients take advantage of their Prop 19 & Prop 58 benefit with our loans to Irrevocable Trusts. In fact we have helped clients save over 21 million dollars with our loans.

Due to rapidly increasing property values and California Proposition 13 ( which helps keep property taxes low in California ), we save our average client over $6,500 in property taxes each year by avoiding reassessment on an inherited home. Best of all, the process is easy and every beneficiary wins because you are able to avoid the costly real estate fees involved with selling a home.

The California Parent-to-Child Exclusion

As far as parent to child transfers are concerned, when one beneficiary who is inheriting a home decides to buyout property shares inherited by co-beneficiaries (siblings) – to have complete ownership of the property, it’s easy to misstep and mistakenly trigger property tax reassessment. A parent to child property tax transfer in is line with the effort to  avoid property tax reassessment under Proposition 19’s parent-child exclusion. Therefore a loan to an irrevocable trust working in conjunction with Proposition 19 allows us to transfer property between siblings – buying out property from siblings. In many situations a loan to an irrevocable trust is needed because there is not sufficient cash assets in the trust to make an equal distribution to all child beneficiaries. That is where we come in.

Choosing the Right Trust Lender to Keep a Parent Low Property Tax  Base

Commercial Loan Corporation is one of just a handful of California lenders that will lend money directly to an irrevocable trust with no personal guarantee. We are also the only Trust & Estate Lender in California who works with hundreds of Trust & Estate Attorneys and provides them with California State Bar authorized Continuing Legal Education on the topic of Proposition 19 and lending to an irrevocable trust. If you are a client is in need of a loan to an irrevocable trust, please call us at 877-464-1066. We will answer all of your questions and provide you with a free trust loan benefit analysis.