California Proposition 19 and Keeping a Parents Low Property Tax Base on an Inherited Home
Did you know that in the State of California you can keep a parent’s low Prop 13 protected property tax base on an inherited home? Thanks to California Proposition 19, it is true; providing that you meet all of the necessary requirements.
We specialize in assisting clients keep a parent’s low property tax base on an inherited home. You can call us at (877) 464-1066 for a free benefit analysis. We will help you determine if you qualify for Prop 19 and how much you might be able to save each month in property taxes by transferring your parent’s property tax base and avoiding property tax reassessment on an inherited home.
Each month we work with attorneys and California property tax consultants, helping their clients avoid property tax reassessment. Doing so saves the client on average over $6,520 a year in property taxes. We also provide attorneys with free California State Bar approved continuing legal education on Proposition 19 and Parent to Child Property Tax Transfers. If you are an attorney or professional fiduciary and are interested in taking our course and receiving your 1 hour of participatory CLE credit, please contact us at (877) 464-1066 to schedule a time that is convenient for you.
We are California’s #1 Trust and Estate Lender. We have helped over 500 clients keep a parent’s low property tax base on an inherited home. Our average client saves over $6,550 a year in property taxes by avoiding reassessment. We provide loans to irrevocable trusts and probate estates. A trust and estate loan allows for an equal distribution to be made so that you can qualify for a California Proposition 19 Parent to Child Transfer and avoid property tax reassessment on an inherited home. This enables one child to keep the home with the parent’s low property tax base while the other child beneficiarie(s) receive an equal share of cash.
Call us today at (877)464-1066. We can provide you with a free cost benefit analysis which will let you know how much you can save by avoiding property tax reassessment. We can answer all of your questions and work with your attorney to help you qualify for a Proposition 19 parent to child transfer and exclusion from property tax reassessment. We can provide financing in as little as 10 business days and help you and your family save tens of thousands of dollars by avoiding costly realtor fees. Our trust loans do not carry a prepayment penalty, so you can pay down or pay off your trust loan as quickly as you like.
A bridge loan is a sum of money lent by a lender to cover a short duration of time between two transactions. Bridge loans are typically used for the buying of one house and the selling of another or during the construction of a home. The bridge loans that we provide at Commercial Loan Corporation are done to help the beneficiary of a trust keep a parents low property tax base on an inherited home.
Can a trust get a bridge loan?
Yes, a trust can receive a bridge loan. That being said, very few lenders will make a loan to an irrevocable trust. Unlike other California lenders, we specialize in helping clients who require a loan on a property that is currently held in an irrevocable trust. We also provide bridge loans on properties that are currently in probate. Not only do we provide bridge loans, loans to irrevocable trusts and probate loans, but we can also provide the funds needed to prepare a home in a trust or estate for sale. We can also assist you in getting an immediate cash offer for a home if you prefer.
When you contact us, we can provide you with a free assessment of all of your options so that you can make the decision that works best for you. We are California’s top Trust and Estate Lender and have helped hundreds of clients avoid property tax reassessment on an inherited home with our bridge loans to trusts.
Trust Bridge Loans
Our trust bridge loans have been purpose designed to assist beneficiaries in taking advantage of the California Proposition 19 Parent to Child Property Tax Transfer. Prop 19 allows a parent to transfer their low property tax base to a child and avoid property tax reassessment on the inherited home. Commercial Loan Corp provides a bridge loan directly to the irrevocable trust or probate estate, with no personal guarantee requirement from the beneficiary inheriting the home. This bridge loan meets the California Board of Equalization equalized distribution requirement and avoids a sibling to sibling buyout, which can put your exclusion from property tax reassessment at risk. The bridge loan to a trust loan process is quick and easy. We are able to close a trust bridge loan in as little as 7-10 business days. Our trust bridge loans help clients avoid costly realtor fees and save on average over $6,500 in property taxes annually by avoiding reassessment. If you, a client or family member are inheriting a home and have questions about a bridge loan to a trust, please call us at (877) 464-1066 and we can answer all of your questions and provide you with a free quote on a trust bridge loan.
Trust Loans and the Parent to Child Exclusion for Reassessment
When California Proposition 19 went into effect on April 1st, 2021, it replaced Proposition 58. California Proposition 58 previously controlled how a person inheriting a home from a parent could avoid property tax reassessment. Under the newly passed Proposition 19, a few of the rules for obtaining an exclusion from reassessment have changed.
Under Proposition 58, a child inheriting a home from a parent could apply for an exclusion from property tax reassessment with no value limitation, providing it was a primary residence. With Prop 58 you could also keep an investment property with a 1 million dollar exclusion per parent. Under Proposition 19, there is a limit of the current taxable value plus $1,000,000 on a primary home. Additionally, Proposition 19 eliminated the ability to avoid reassessment on an inherited home that will not be used as your primary residence.
There are additional requirements when it comes to receiving an exclusion from reassessment on an inherited home. One key point for the Assessor’s Office is to show that everyone receives their equal share according to what the trust states. If an equal distribution is required, a loan cannot be made to the trust by any of the beneficiaries who intend on keeping the real property. Doing so would be considered a sibling to sibling buyout resulting in a transfer between beneficiaries rather than a transfer from parent to child. For example, if the only asset in the trust was a home worth $900,000 and one of the three child beneficiaries wanted to keep that home, a loan would need to be made to the trust for $600,000. In this situation the two beneficiaries who did not want the home would each receive their $300,000 cash and the other child receives the home with $300,000 equity left in it after the trust loan was made.
When there are insufficient cash assets for an equal distribution to be made from an irrevocable trust, a person will often require the assistance of a trust and estate lender. As documented by the California Board of Equalization, the acquiring beneficiary may not utilize their own funds or make a personal guarantee on the loan. Doing so would create a sibling to sibling buyout, disqualifying them for the full parent to child transfer exclusion. The loan will need to be made directly to the trust, without first removing the property from the trust or requiring a personal guarantee from the acquiring beneficiary. A qualified trust and estate lender will make a loan directly to the trust, providing enough cash for the equalized distribution to be made. The trust lender often works directly with an attorney or property tax consultant. A trust loan is typically a short term loan with no pre-payment penalty. Once the property has been transferred from the trust to beneficiary, the loan can be paid off or refinanced into a conventional mortgage.
If you, a family member or client is in need of a loan to a trust or irrevocable trust, you may contact us at (877) 464-1066. One of our Trust Loan Account Managers can answer any questions you may have on the trust loan process and put you in contact with a Qualified Trust & Estate Attorney or California Property Tax Consultant in your area if you are in need of assistance. We will also provide you with a no cost trust loan benefit analysis that will estimate how much you can expect to save by using a trust loan to avoid property tax reassessment on an inherited home.
Trust Loans, Estate Loans, Probate Loans & Loans to Prepare A Home for Sale
Commercial Loan Corporation is a one stop shop for all of your Trust & Estate Loan needs. Unlike other lenders, we specialize in helping clients who need a loan for a home in an irrevocable trust or currently in probate. Most lenders refuse to lend on these properties, but that is what we specialize in. Not only do we provide trust loans and probate loans, we can also lend funds to prepare a home for sale. In addition to lending services, we can also help you get an immediate cash offer for a home you wish to sell. We can provide you with a free assessment of all of your options so that you can determine which makes the most sense for you.
Our trust loans are specially designed to help beneficiaries and heirs take advantage of the California Proposition 19 parent to child property tax transfer and avoid property tax reassessment on an inherited home. We lend directly to irrevocable trusts and estates in probate, with no personal guarantee requirement from the beneficiary inheriting the home. This meets the California Board of Equalization equalized distribution requirement and avoids a sibling to sibling buyout, which can put your exclusion from property tax reassessment at risk. The loan process is quick too. We can fund a trust loan in as little as 7 business days. Our trust loans help clients avoid costly realtor fees and saving on average over $6,500 in property taxes each year by avoiding reassessment.
Much like a trust loan, a probate loan is typically used to help a client avoid property tax reassessment on an inherited home. The key difference is that the home is in the probate process and opposed to locked in an irrevocable trust. We can help you simplify a complex situation and secure your low property tax base. We will answer all of your questions on the process and help you determine if a probate loan is right for you.
Trust & Estate Loans to prepare a home for sale
In some situations a trust or estate would like to sell the home for top value but does not have the funds needed to make repairs or prepare the home for sale. We make loans to trusts and estate so that they can be rehabilitated, repaired or remodeled; allowing you to fetch top dollar when it is sold. In some cases speed is of the essence and the client wants to get a quick cash offer for the home and avoid a potentially length home sale process. We have contacts throughout California who can assist you and and in some cases purchase your home in as little as 10 business days.
If you are inheriting a home and have questions about a trust loan, probate loan or getting a cash offer for a home; please call us at (877) 464-1066. We can answer all of your questions on the process and provide you with a free quote and benefit assessment.
Commercial Loan Corporation is a California based provider of probate loans. Our probate and estate loans are specifically designed to help heirs, beneficiaries and administrators who are in need of financing on a home involved in the probate process. Commercial Loan Corporation is California’s premier probate lender. We have helped our clients save over 12 million dollars in property taxes by transferring a parent’s low property tax base on an inherited home. We provide estates with the cash needed to make an equal distribution and qualify for a California Parent to Child Property Tax Transfer.
Our specialized probate loans and estate loans allow heirs, beneficiaries and probate administrators to buy out siblings, settle debts, make improvements to a home, and prevent property tax reassessment on a home being inherited from a parent. We offer affordable loans that are customized to your needs. We provide each client with a Free Upfront Probate Loan Benefit Analysis that shows your estimated loan proceeds, property tax savings and the costs associated with the loan. On average our probate loans, estate loans and trust loans save our clients over $6,550 in property taxes each year by avoiding property tax reassessment on an inherited home.
If you, a sibling or a client is interested in a California Probate Loan, Loan to a Trust or Estate Loan, we are here to assist you. Call us at 877-464-1066 and we can provide you with a free estimate showing you how much you might be able to save by avoiding property tax reassessment with the help of a probate loan.
What is a Probate Loan?
Probate loans are loans provided to a home involved in the probate process. Probate is the administration of a deceased person’s estate, with or without a will. A probate loan or estate loan provides funds to the probate estate to accomplish a goal that requires the conversion of equity in the real estate into cash. The probate loan is made directly to the estate. A probate loan must be approved by the probate administrator. We can help guide your through the process and if needed, put you in contact with an Attorney or Property Tax Consultant to assist you with the process.
Why is a Probate Loan needed in some situations?
A Probate loan or estate loan, provides cash to the estate for a variety of purposes. During the probate process, which can be lengthy, the administrator of the estate may need funds to administer the estate. Examples of this may include utility costs, property taxes, property insurance, association fees, legal expenses, paying off outstanding debt, mortgage payments, or property maintenance expenses. Without a probate loan, the estate may not be able to afford to meet the costs of these expenses. A probate loan or estate loan is also often used to buy out siblings when multiple siblings are inheriting a home from a parent. For example, the child that wants to keep the family home can take out an estate loan and buy out the other siblings with the cash provided from the probate loan. If a child wants to keep a parents low property tax base on an inherited home, the County Assessors Office must approve the exclusion for reassessment. One of the requirements of a California Property Tax Transfer and Exclusion for Property Tax Reassessment is that an equal distribution of assets be made to all child heirs / beneficiaries and that if sufficient cash assets do not exist in the estate, that a non-personally guaranteed 3rd party loan be used to equalize the distribution. If the process is not done correctly, the property may be reassessed at the current market value. On average we are able to save our clients over $6,500 per year in property taxes by helping them avoid property tax reassessment on the inherited home. Additionally, we save the estate over $50,000 on average by avoiding the costly realtor fees associated with selling a home, and all of the heirs / beneficiaries are able to take advantage of that savings. If you are interested in finding out if a probate loan might be a good option for you, please call us at (877) 464-1066
Join Commercial Loan Corporation and have your Proposition 19 Trust Loan questions answered at the USC Gould Trust and Estate Conference on 11/9/2022.
Come and meet Tanis Alonso-Kluever and Thaddeus Farrell at the USC Gould Trust and Estate Conference on November 9th, 2022. This years trust & estate conference will be held at the Westin Bonaventure Hotel. Commercial Loan Corporation is sponsoring the event and will be on hand to answer all of your questions on California Proposition 19 Parent to Child Transfers and our specialized Trust Loans to assist clients in qualifying for a full exclusion from property tax reassessment.
This years special keynote speakers include Dr. Bonnie Olsen and retired Judge Paul Suzuki. The speakers will discuss the development of the Judicial Guardianship Evaluation Worksheet, a tool for probate judges to evaluate relevant factors in assessing the propriety and scope of conservatorships for older adults. They will complete the 45-minute presentation discussing how the Worksheet may impact consideration of evidence in probate matters. Here are some details about the upcoming USC Gould Trust & Estate Conference:
The 48th Annual Trust and Estate Conference will take place on Wednesday, November 9, 2022, at the Westin Bonaventure Hotel and Suites in downtown Los Angeles.
For 48 years, USC Gould’s Trust and Estate Conference has been delivering practical and real-life solutions from speakers with a proven track record of addressing unexpected problems in estate planning, probate, and trust administration. The Conference typically attracts over 500 of your peers for unrivaled networking and learning opportunities from both the speakers and your professional colleagues.
Who should attend?
The Conference is specially tailored for trust, estate planning, probate and elder law professionals including attorneys, paralegals, trust officers, accountants, financial institution executives, private professional fiduciaries, wealth management professionals, fiduciary officers, underwriters and insurance advisors.
Registration includes all sessions, continental breakfast, networking breaks, luncheon presentation, continuing education credit, and print and downloadable copies of the practical Conference Syllabus, including the popular Resource Guide, a Trust and estate Professional Directory covering Los Angeles, Orange and San Diego counties.
Free WiFi will also be available for attendees at the Conference!
Parent to Child Property Tax Transfers in California
Proposition 19 Parent to Child Transfer
Using our specialized Trust Loans, we help clients take advantage of the California Proposition 19 Parent to Child Property Tax Transfer. The Prop 19 Parent to Child Property Tax Transfer allows a child to transfer a parents low property tax base on an inherited home. On average, doing so saves our clients over $6,500 a year in property taxes.
Trust Loans in California
Normally when a person inherits a home, the County will reassess the property taxes on that home. Thanks to California Proposition 19, a child can avoid property tax reassessment if done correctly and the required documents are filed with the County quickly enough. The majority of our clients receive an inherited home from a trust, but we also help clients who are inheriting a home from probate estates. When multiple child beneficiaries are involved and there are insufficient cash assets to make an equal distribution in the trust or estate, a trust loan is usually required. We specialize in trust loans and provide the funds needed to meet the Prop 19 and California Board of Equalization equal distribution via a third party loan requirements.
Loans to Trusts
We have helped hundreds of clients avoid property tax reassessment with our loans to trust and estates. If you or your client has questions on a trust loan, we provide a free consultation that will answer all of your questions on the trust loan process. We also provide free California Board approved Continuing Legal Education to Attorneys on California Proposition 19 Parent to Child Transfers. Please call us today at 877-464-1066 for a free consultation or to sign up for our Continuing Legal Education course. If you would like to receive additional information on a trust loan, please complete our online Trust Loan form located here.
Trust Loans or Loans to Trusts are loans made directly to a trust as opposed to an individual. With a conventional mortgage, a borrower applies for a loan and signs the loan documents personally guaranteeing the loan. With a trust loan it works a little different. Instead of a borrower guaranteeing the loan, the Successor Trustee will sign loan documents on behalf of the trust and the lender lends to the trust as opposed to a person. With a trust, usually a home is used as the collateral for the trust mortgage or trust loan. Often times there is no credit check, income verification or personal guarantee involved with a trust loan.
What is the purpose of a Trust Loan?
Most of the trust loans that we provide are to prepare a trust for distribution so that one of the trust beneficiaries can avoid property tax reassessment on an inherited home. California is one of the few states that provides a property tax security measure which prevents property taxes from increasing too rapidly. In California, Proposition 13 is what achieves this. California Proposition 13 caps the maximum increase of the assessed value of a home at 2% annually. This means that over a 10 year period, if your home doubled in value from $400,000 to $800,0000; you would only be paying property taxes on an assessed value of approximately $487,500 as opposed to the current market value of $800,000. In California, the typically property tax rate is 1% of the assessed value. So in the example above, it would mean an annual property tax savings of $3,125.
California Proposition 13 has been in effect since 1978. As you can imagine, since 1978 property values have increase significantly and Proposition 13 has kept the assessed values of many homes extremely low. In addition to preventing property taxes from increasing too rapidly, California has other laws to protect residents. Proposition 19, allows a parent to transfer a home to a child and avoid reassessment on that home if it is a primary residence. This is where a trust loan becomes very important. California Proposition 19 has specific requirements that must be met if a person inherits a home from a parent and wishes to avoid property tax reassessment on that home. One of those requirements pertains to trusts and estates. The California Board of Equalization requires that an equal distribution of assets be made to all child beneficiaries unless specific language exists in the trust. Information on this can be viewed here on the California Board of Equalization website When a trust is involved, a trust loan is likely the only way to accomplish an equal distribution.
Often times when a trust contains real estate, the home is by far the most valuable asset in the trust. When there are multiple beneficiaries in the trust, that often time means an equal distribution can not be made without cash being added to the trust. The trust loan resolves this issue by injecting cash into the trust while at the same time placing a lien or debt against the real estate. This allows for one child to inherit the home while other children receive an equal amount of cash, creating an equal distribution. Since the loan is made to the trust as opposed to the beneficiary, the child inheriting the home can qualify for the Proposition 19 exclusion from property tax reassessment. On average our clients save $6,500 a year in property taxes by avoiding property reassessment.
If you are inheriting a home and are interested in keeping a parents low property tax base, we may be able to help. We have assisted over 450 clients in avoiding property tax reassessment. We work with Trust & Estate Attorneys and Property Tax Consultants across California. Call us at (877)464-1066 and we can provide you with a FREE Trust Loan Benefit Analysis that will let you know if you may be eligible to avoid property tax reassessment and how much in annual property taxes a trust loan may help you save.
When you inherit a home, do the property taxes get reassessed?
Do property taxes increase on an inherited home?
The simple answer is yes. When the County receives notice that ownership has changed on a home, by default a reassessment is triggered. Even more importantly, in some cases property reassessment can be retroactive to the date of death. When this occurs the person inheriting the home can be hit with a massive tax bill.
Can property tax reassessment be avoided on an inherited home?
The good news is yes, property tax reassessment can be avoided on an inherited home. Each month we help our clients avoid having their inherited home reassessed. California has laws that allow you to avoid property tax reassessment on an inherited home if you qualify and transfer the property in accordance with the Board of Equalization requirements. When multiple siblings are involved things can get a little complicated. The California BOE and County Assessors Office will often require that an equal distribution of assets be made to qualify for a full exclusion from reassessment unless specific abilities are granted in the trust. If the distribution is not equalized or if a child contributes their own funds to buyout other child beneficiaries then the property will likely be reassessed as it is considered a sibling to sibling buyout and opposed to a parent to child transfer. California has no laws that allow siblings to transfer property without reassessment, only parents to children or grandparents to grandchildren.
Commercial Loan Corporation has specialized trust loan programs designed to meet all of the BOE requirements to qualify for a parent to child transfer and avoid property tax reassessment on an inherited home. We work directly with your Attorney, Trust Administrator or California Property Tax Consultant to make sure you will avoid property tax reassessment. In fact we have helped hundreds of clients avoid property tax reassessment on an inherited home and have saved California’s over twenty million dollars in the process. We are California’s top Trust & Estate lender and even offer California State Bar approved continuing legal education on the subject.
If you, a client or a member of a trust may be interested in inheriting a home from a parent, we can provide you with a free trust loan benefit analysis. It will let you know how much you would be eligible to save from avoiding property tax reassessment on an inherited home. On average we save our clients over $6,500 each year in property taxes. The process is quick and easy and we can answer any questions that you have. Please complete our trust loan information request form or call us at 877-464-1066.