Trust, Probate & Estate Loans

Loans to Trusts & Estates

The most common loans we do at Commercial Loan Corporation are mortgages to provide liquidity for family trusts and estates. Often times, one of the primary goals of these loans is to keep the Proposition 13 tax base in place by taking advantage of Proposition 58 or Proposition 193. These California propositions allow our clients to keep the low property tax base charged to their parents or grandparents, avoiding reassessment and saving our clients potentially thousands of dollars annually. We are a direct lender and can close your loan with our own funds. When dealing with Commercial Loan Corporation, you can expect:

  • An easy application process
  • Flexible underwriting guidelines (No credit score minimums)
  • Loans closed in 7 to 10 calendar days

If you are interested in more information on our estate loan and trust loan programs, please call us at 877-464-1066 or complete this quick information request form:

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Additional Information On Trust Loans and Estate Loans

Proposition 58, effective November 6, 1986, is a constitutional amendment approved by the voters of California which excludes from reassessment transfers of real property between parents and children. Proposition 58 is codified by section 63.1 of the Revenue and Taxation Code.

If you are the trustee of a trust that is looking for a 3rd party loan to help facilitate the non pro rata distribution of that trust, you were probably referred to us by your estate planning / probate attorney. If that is not the case and you are looking for a good attorney referral, please call us. We can help you find an attorney in your area. We believe that you should be working with an attorney if you are trying to take advantage of Proposition 58 and are in a situation where a 3rd party loan is required for the non pro rata distribution of the trust.

Your attorney will make sure that all the paperwork is prepared correctly and the details of the process are followed. There is another consideration that we feel is important to address. This 3rd party loan is not inexpensive. The costs associated with this type of loan need to make sense when compared to the tax savings. We are very flexible about accepting prepayments without charging a penalty. We also lower payments to cover just the interest on the remaining balance after prepayments are made. However, if the sole purpose of the loan is to take advantage of the property tax break, please use the Cost / Benefit Calculator to understand the numbers and how long it will take the tax savings to pay for the loan costs.

( Click Here For the CLC Cost / Benefit Calculator or call us at 877-464-1066 so that we may assist you)

This calculator is for the loan fees only and does not take into account the interest charged on the loan. In most cases our borrowers pay back most of the loan immediately because they do not want to pay interest if they can help it.

Please call us at  (877) 464-1066 or complete this information request form for more information on our Loans to Trusts.