Non Pro Rata Distribution Loans For Trusts and Estates – Call Commercial Loan Corporation at 877-464-1066
Non Pro Rata Distribution Loans For Trusts and Estates
Commercial Loan Corporation is one of California’s leading providers of loans to trusts and estates. Our specialized mortgage infuses a trust or estate with cash so that a non pro rata distribution can be made. A non pro rata distribution occurs when each heir or beneficiary receives an equal proportion of the entire estate or trust distribution but not of each asset. When a trust or estate does not hold sufficient cash assets, our loan provides the trust or estate with the cash needed to equalize the distribution or payout of the estate. This allows one of the beneficiaries or heirs to keep an inherited home and take advantage of the Proposition 58 tax benefit; which allows the California Proposition 13 protected low tax base from their parent to be transferred to the child who is inheriting the home.
On average our Non Pro Rata Trust Distribution and Probate Estate Distribution Loans save clients over $6,200 per year in property taxes. Our process is quick and easy. In fact we can often times complete a non pro rata loan in as little as 7 business days. Our loan is made directly to the trust.
If you, a family member or a client that you represent requires a California Proposition 58 Non Pro Rate Distribution Loan, please call us at 877-464-1066. Even if you are attempting to distribute and irrevocable trust, we have loan programs that can assist you. We can answer any questions you have on our non pro rate distribution loans and provide you with a free cost benefit analysis to see if one of our trust and estate loans makes sense for you.
At Commercial Loan Corporation, we specialize in providing financing to Trusts. Our loan provides the cash needed for an irrevocable trust or estate to make an even distribution when one of the beneficiaries is inheriting a home as their share of the distribution. The California Board of Equalization requires that an even distribution be made to take advantage of Proposition 58’s Parent to Child Transfer and avoid a reassessment of property taxes. Exclusion for reassessment of property taxes allows a child to keep their parents’ low property tax payment. Our loan helps clients save on average over $6,000 per year in property taxes. In just a few short minutes we can help a client determine how much they could save by taking advantage of California’s Proposition 58’s Exclusion for Reassessment of Property Taxes.
When it comes to choosing a California Private Money Lender or California Hard Money Lender, you have a handful of options to choose from. Selecting the right one might be more important than you think.
Interest Rates, Penalties & Fees
For instance, choosing the best private mortgage lender can have a significant impact on your pocketbook. Lenders make money on a loan in a few different ways. The most common ways are through fees, interest rate premiums and penalties. One of the most important things that separates Commercial Loan Corporation from other California Private Money Lenders is that we do not charge any form of prepayment penalties, we offer competitive fees and have some of the lowest interest rates in the hard money lending marketplace. Prepayment penalties alone can cost a borrower potentially tens of thousands of dollars or even worse, trap them in a high interest rate loan that they no longer want or need!
Another important factor to consider when selecting the right private money lender is customer service. We are aware, that in this day and age, the phrase “Customer Service” almost sounds sarcastic. At Commercial Loan Corporation you are more than just a loan number. We might be a relatively small private money lender, but we are big on the customer experience. Regardless of your loan amount, you will always be treated with respect and courtesy by every member of our team. It is a sincere goal of ours to provide you with the fastest and best mortgage transaction that you have ever experienced. In many cases, we can fund a private money loan to a trust or estate in as little as 7 days. Please view some of our recent customer testimonials located here.
As you may be aware, in some situations California Proposition 58 grants residents the ability to transfer Real Estate along with a Proposition 13 protected property tax base from a parent to child. Sometimes in order to qualify for this exclusion against reassessment of property taxes, the beneficiary or heir may require a private money bridge loan or hard money loan. When it comes to Trust & Estate Bridge Loans and Third Party Private Money Loans to Trusts and Estates, experience with these types of loans is critical. The truth is that most California hard money lenders either never or rarely lend money to a trust or estate for Proposition 58 tax benefit purposes. If the financing is not conducted properly, the County Tax Assessors office is likely to reject the borrowers requests for a property tax reassessment exclusion. Even a small mistake could mean missing out on possibly thousands of dollars annually in property tax savings. At Commercial Loan Corporation, we specializes in providing short term financing and bridge loans to help our clients obtain Proposition 58 property tax reassessment exclusions. Every member of the Commercial Loan Corporation team has at least 15 years of mortgage experience and combined, our team has over 90 years of mortgage experience.
In a world where to increase profits many lenders opt to use overly complicated phone systems to replace live customer support; we believe that customer service holds a greater value. At Commercial Loan Corporation we are determined to provide you with the best customer service experience possible.
Regardless of if you are an attorney representing a client on a trust loan or a borrower looking for third party financing to make an equal distribution of a parents estate; our professional staff is here to assist you. We are happy to take as much time as is needed for you to understand the loan process and will keep you informed along the way. In addition to setting the highest standards in customer service, we also fund the majority of our trust and estate loans with our own capital. This is important because it allows us to underwrite the loan to our own guidelines, quickly grant an approval you can rely on and also complete your financing more quickly; often times in as little as 7 days.
We don’t stop there. Unlike most of our competitors in the Trust & Estate loan marketplace, we do not charge any form of loan prepayment penalty or set any minimum days of interest collected requirements. That may not sound like a big deal, but depending on your loan amount and interest rate, it could potentially save you tens or thousands of dollars in pre-payment penalties or interest fees! We even go a step further and if you pay down your trust or estate loan, we will recalculate your payment based on the new lower outstanding mortgage balance.
Perhaps the best indication of customer service is communicated through the words of some of our past clients. Here are just a handful of testimonials from past Commercial Loan Corporation customers and business partners; more are located here:
“I am a California licensed Professional Fiduciary and needed a hard money loan for one of my clients. My client had been turned down for a Second TD by two conventional lenders before I received a cute ad mailer from Commercial Loan Corporation. From my first phone call to Commercial Loan Corporation (when the owner actually answered the phone!), to my last call with Autumn after the loan had been funded, I enjoyed every moment of this loan process. (How many lenders can you honestly say that about?) I look forward to our next loan together and would not hesitate to recommend Commercial Loan Corporation to anyone needing short term funds. You will be treated professionally and with kindness every step of the way.” – Clarice H. – Grover Beach, CA
“CLC was: Professional, Efficient, Thorough, Organized and Extremely Prompt in getting my Loan approved, signed, closed, recorded and Funded. They were ready to Fund within 5 business days! I highly recommend CLC. It was a complete pleasure to work with Mike Riggs and Autumn Skerritt! I’m very glad my attorney recommended CLC. I’m sure you will be extremely pleased, as well.” – Sonia T. – Costa Mesa, CA
“Exceeded expectations. Best service I have experienced with ANY lender! Went above and beyond at every opportunity. Took great care of a client that we referred to them. Response times to any communications from the client or from our office were prompt and complete. Loan processing times were FAST.” – Menke Law Firm, APC, – Long Beach, CA
If you are in need of a professional and reliable, California Trust and Estate loan provider allow us to assist you. Please call us at 877-464-1066.
Commercial Loan Corporation – California Private Money Lender. Joseph Minton, Autumn Skerritt & Kerry Smith
Here Is How The Process Works For A California Trust or Estate Private Money Loan From Commercial Loan Corporation
By: Autumn Skerritt
Hi, I am Autumn from Commercial Loan Corporation. As the loan processor, I typically get introduced to the Trustee or Borrower after our Account Executive has informed them of the loan details and provided them with a clear understanding of the mortgage fees. After making an introduction call to the client, I put a “Needs List” together. A needs list is a list of conditions that I will need the client to provide before we can close the trust loan, estate loan, probate loan or mortgage. At Commercial Loan Corporation we try to make this process as painless as possible for our Trustees and Clients. My goal is for the “needs list” to have less items on it than there are syllables in the word tri-ni-tro-phen-yl-meth-yl-ni-tra-mine. The best part is, doing a trust or estate loan with Commercial Loan Corporation is easier than pronouncing the word.
To give you an idea of what type of conditions we need on a typical trust or estate third party mortgage, here is a great example of a typical “Needs List” that I send out to our clients:
Copy of the Appraisal done for the Trust or Estate – If you do not have one, we can order one for you
Copy of the Trust and all Amendments (if applicable)
Copy of the Trust Tax ID Number (if applicable)
Copy of your ID
Proof of Repayment Funds or a Pre-Approval letter for future financing. We can also assist you with this if needed.
Copy of Insurance Declaration Page (we can get this before funding if you don’t have it handy)
Copy of Death Certificates so title can file an affidavit of death (we will need the originals for closing)
Bank Account information for the Trust (if applicable)
I always review the needs list with the client so that I may answer any questions they might have. On occasion, I also use my ESP to answer some questions they have before they even ask them. Here is an example of some commonly asked questions.
When conducting a third party private money trust loan, most clients have been instructed by their counsel that created the Trust to get the home appraised at the time of death. We can often times use that appraisal for our trust loan. Doing so saves the client hundreds of dollars and can speed up the trust loan process. Once I receive that appraisal, I submit it to our review department to confirm the value still holds true and that the home is in habitable condition. That appraisal review process typically takes 24-48 hours to complete. “What if we never got an appraisal done at the time of death?” GREAT question! I am happy you asked that…. we have can offer a few simple options for you. We can order an appraisal for you! Appraisals are usually completed in 2-5 business days; depending on the area where the home is located. A full residential appraisal typically costs between $350-$550, depending on the area, approximate size and value of the home.
A Copy of the Trust and all Amendments. This condition is only applicable when we are providing a mortgage to a trust. If a client does not have this information available, it is typically easy to solve by calling their Trust attorney and requesting them to email a copy over to me. Often times trust documents ranges from 5 to over 100 pages in size. I know it’s a pain if you are one of the lucky ones that have a very thick trust and no access to a scanner. To help we can always send you an overnight FedEx envelope so you can provide us with the trust documents that way. Once I receive the trust information, I review it with title and escrow. We confirm how many trustees there are and that they have the ability to sign on behalf of the trust. This review process typically takes about 24 hours.
The Trust Tax ID Number is the condition that I typically get calls from clients on the most.The most common question is “where I can find our trust tax ID #”. The Trust Tax ID Number is not typically in the Trust paper work. It is issued by the IRS. I usually request an old tax form from the client which shows that tax ID number. Some clients have accountants associated with the trust and can also them for the Trust Tax ID Number. The Trust Tax ID Number is needed because at the end of each year we send out a 1098 to each and everyone of our clients so they have it for tax season.
The reason why we ask for a current ID is to confirm that the Trustee name matches our clients. We also use it to confirm the mailing address on the ID.
Because our loans are typically “short term” loans we want to make sure that the client has a plan or the ability to pay off the mortgage. We request review either the most recent bank statement showing that the funds are available for repayment, or an approval letter from a license mortgage banker showing you qualify for permanent. We can also provide you with permanent financing if needed and assist you with getting approved.
The reason we require a Copy of the Insurance Declaration Page is because while our loan is out, we need to make sure that it is covered by insurance in case of damage or disaster. If a client has a hard time getting this policy, no problem. I can always move this to a funding conditions and help the client obtain a policy from the insurance agency. If the home is not currently covered by hazard insurance, we have a handful of insurance agents we can recommend that will take excellent care of the client.
We ask for a Copy of Death Certificates on every file because 8 out of 10 clients have not filed an Affidavit of Death on title. An Affidavit of Death is used to notify businesses, courts, and other places of someone’s death. This legal document is a sworn statement that legally states someone has passed away. The affidavit of death is typically used in conjunction with a certified death) In order to lend to the trust after passing, this must be filed before the new deed gets filed. This is a added service we do for all of our clients at no extra charge. We want to make sure that its done the right way, so years after our transaction you will not run into problems.
We ask for the Bank Account information for the Trust (if applicable) because we need to know where to wire the loan proceeds. Because the Trust is borrowing the money, the funds must go to the trust. We typically cannot send the money to an individual when lending to a trust. To be extra cautious we do call the Trustee at the time of closing and ask them to verbally give us the account and routing number. We do that to help prevent fraud. We do our very best to protect our clients. Some of the issues I have ran into with past clients on this, is the bank account has been dissolved at the time of death and the trust is no longer associated to a bank account. In that case we ask the borrowers to call their current banker and ask them to open up a new account in the Trusts name. If the clients have trouble with that, we can contact the attorney to help find a solution, that works best for that client (so far, we haven’t had to do that yet).
That was a mouthful! The most important thing to keep in mind is that I am here to serve you. I am also just a phone call away and you can reach me at 877-464-1066 if there is anything that you need. So here is a quick recap of the Commercial Loan Corporation loan process:
I send out needs list to the borrower
Get everything back on the needs list from the client
I open title and escrow (that comes back within 48 hours typically)
I then submit the appraisal for review to confirm value of home (that comes back within 24 hours)
I do a final review of all the conditions along with title and appraisal review
Once everything is verified, I call the borrower and attorney and give them great news that we are ready to wrap up the trust loan. I then confirm the loan amount, net amount and all fees and terms with both client and attorney.
Once everyone agrees on terms and fees, I draw loan docs and releases them for review to the client and attorney (turn time to draw loan docs in about 3 hours)
Once the Client and attorney give Commercial Loan Corporation the thumbs up on the loan docs, escrow will send a notary out to the client and sit with them while they sign the loan document package. The signing typically takes 30 minutes.
After the documents are verified, the loan is funded!
If you are in need for a third party loan to a trust or estate, please call us at 877-464-1066 so that we can assist you! We successfully help clients receive an exclusion from property tax reassessment every month and we can help you too!
Estate Loans and Third Party Loans To Trusts – Call 877-464-1066 For Assistance
Provider Of California Estate Loans
Thanks to California Proposition 58, a parent is permitted to transfer their low property tax rate to a child on an inherited piece of real estate. Unfortunately, in some situations receiving an exclusion from property tax reassessment can be easier said than done. Specific steps must be taken to receive your exclusion from your local County Tax Assessors Office and if they are not done correctly, you may lose your ability to preserve your parents low property tax rate. Commercial Loan Corporation specializes in providing loans to estates and trusts. These specialty private money mortgages assist our clients in qualifying for the Prop 58 property tax exclusion from reassessment. In addition to providing third party private money trust and estate mortgages, we can also put you in contact with a qualified estate attorney, probate attorney, fiduciary or California property tax consultant to assist you in qualifying for your Proposition 58 benefits.If you need an estate or trust loan, or have questions, please call us at 877-464-1066 or complete our information request form located here.
Proposition 58 Exclusion From Property Tax Reassessment
In 1986 California enacted Proposition 58. Proposition 58 allows for an inheriting property owner to avoid a property tax reassessment when acquiring real estate from their parents. The inheriting owner’s property taxes are calculated on the established Proposition 13 factored value, instead of the current market value, saving them potentially thousands of dollars annually. This is especially important if one of the children inheriting the property wants to either keep the home as a residence or as an investment property. If the parent has owned the home for an extended period of time, there is a high probability that Prop 13 has kept their property tax rate much lower than it would be if the property was reassessed at current market value.
Under Proposition 58, retaining a parents low property tax rate can become complicated when there is not enough liquid assets in the trust or estate to create an equal distribution to all siblings. In this situation a third party loan placed against the inherited home may be the only option to make an equal distribution. The additional cash made available from our 3rd party loan allows each of the siblings to receive an equal share of the assets. If the third party loan is not handled properly, the County Assessors Office may reject your request for a Proposition 58 exclusion from property tax reassessment and the property taxes will be calculated on the homes current assessed value. If you, one of your siblings or a client of yours is in need of a third party loan to take advantage of California Proposition 58’s exclusion from property tax reassessment, call Us at 877-464-1066. We specialize in providing private money loans to trusts and estates and can assist you.
Come See Commercial Loan Corporation At The PFAC Educational Conference
Come and see Commercial Loan Corporation at the 2018 Annual PFAC Education Conference. Commercial Loan Corporation will be hosting a booth in the Exhibit Hall. This year the 23rd Annual PFAC Educational Conference will be celebrating the legacy of success of California licensed professional fiduciaries. PFAC is proud to serve this honored profession by providing some of the most comprehensive and current education in the industry, partnering with proven presenters and speakers imparting skills and knowledge that you can put to use in your practice. Commercial Loan Corporation is proud to support this event and if you are attending we will be happy to see you there. The PFAC Educational Conference will be held at the Riverside Convention Center this year on May 30th – June 2nd, 2018.
Commercial Loan Corporation PFAC Ad 2018 Educational Conference
Mike Riggs will be on hand at the conference to answer any questions that you may have on Proposition 13, Proposition 58 and how to best take advantage of the savings benefits with our trust & estate mortgages. You may also visit our Homepage for additional information on our Trust & Estate loans. For additional information on how to find us at the 23rd Annual FPAC Conference or about our specialized loans to trusts and estates, please call us at 877-464-1066.
The Importance Of Working With A Residential Property Tax Specialist
Working with the right business professionals can make all the difference. When it comes time to secure a Proposition 58 Exclusion From Property Tax Reassessment, through Prop 58, that could not be more true. The process of obtaining your exclusion from property tax reassessment can be littered with pitfalls. Even just one small mistake can be the difference between obtaining an exclusion or not. Retaining a Parent’s or Grandparent’s low Proposition 13 property tax rate can save you potentially thousands of dollars each year. That is why it is important to have a good Private Money Lender, Attorney and or California Property Tax Specialist on your side to help guide you.
When providing clients with a third party loan to a trust, we always recommend that they work with either a Trust & Estate Attorney, Qualified Trust Administrator and or a Property Tax Specialist. Attorneys and Residential Property Tax Specialists provide different services. Some California Residential Property Tax Consultants specialize in assisting clients in obtaining a Proposition 58 exclusion from property tax reassessment. Their expertise in these matters can be invaluable. The best of them even have experience working for the County as a Property Tax Assessor. This gives them a great deal of insight into what the assessors office will need in order to grant your exclusion. It can be especially helpful in complex situations where time is of the essence. In California, you only have three years to file for the exclusion from property tax reassessment. A long process can also delay the distribution of a trust in some cases.
The complexities of obtaining an exclusion from property tax reassessment should not be understated. Unless you deal with California’s Proposition 58 Exclusions From Property Tax Reassessments on a regular basis, it can be difficult to avoid mishaps. Here are just a few examples of issues that a qualified California Property Tax Consultant can assist you with.
Common Proposition 58 Exclusion From Property Tax Reassessment Mistakes:
Not conducting the 3rd party financing properly and causing a property tax reassessment to occur.
Not keeping track of each eligible transferor’s $1 million limit; thereby exceeding the $1 million limit and triggering a reassessment for the overage.
Avoiding situations where an acquiring beneficiary lends money to the trust when funds are needed to make an even distribution. The California Board of Equalization 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.
These are just a few examples of circumstances where a California Property Tax Specialist can assist you. If you are in need of a third party loan for a trust, a qualified Trust & Estate Attorney or a Property Tax Consultant referral, please call us at 877-464-1066 so that we may assist you.
If you are a California Trust & Estate Attorney, Probate Attorney, Fiduciary, Estate Planner, CPA, Wealth Manager or Property Tax Specialist and would like to be added to our list of Trust & Estate Professionals, please use the following link to apply to become a Commercial Loan Corporation recommend Trust & Estate Professional. Credentials will be reviewed and verified.
Come meet Mike Riggs and Autumn Skerritt from Commercial Loan Corporation tonight at the Orange County Bar Association Trust & Estates Continuing Education Presentation. Tonight’s presentation will be Tips And Strategies For Practicing In Probate Court. This presentation is ideal for those of you who are new to probate court or those who are looking for a refresher. Tonight’s speakers include Alan L. Armstrong, Alan D. Davis and Gianna Gruenwald.
Mike and Autumn will be onsite to assist you with any questions that you might have pertaining to loans to trusts and estates. They will be at the Commercial Loan Corporation exhibit table out front of the presentation hall and look forward to seeing you there. The presentation will be hosted at the Chapman University, Fowler School of Law. Chapman University, Fowler School of Law is located at 370 N. Glassell, Orange, CA 92866.
Commercial Loan Corporation specializes in mortgages to trusts and estates to help facilitate a successful parent to child transfer and exclusion for property tax reassessment. If you have a question on or need assistance with a third party loan to a trust or estate and are unable to make it to tonight’s event, please feel free to call us at 877-464-1066 so that we can assist you.
Commercial Loan Corporation, A California Proposition 58 Lender
Why Commercial Loan Corporation
There are several things that separate Commercial Loan Corporation from other California private money lenders. Perhaps most important is that Commercial Loan Corporation specializes in loans to trusts with the specific goal of retaining the original prop 13 tax status. There are a few lenders that consider these transactions occasionally but these loans are a small percentage of what they do. It is critically important that this transaction is done correctly to ensure that the county doesn’t reassess the property. There are a lot of mistakes that can be made if it’s not done correctly. We work directly with both the customer and the attorney to assist in this process. We have adjusted our documents with the help of numerous attorneys to provide a seamless transition when the property is distributed from the trust to the individual taking the property in the distribution from the trust. We understand the process better than most, because it’s all we focus on. And we are the lender so we make all of the decisions ourselves. You are right at the source.
Another very important thing that separates us from anyone out there is our policy on early payment. You will find that other private money lenders want to make as much interest as possible off of the transaction. This is not a bad thing. Companies are in business to make a profit. However, our policy on prepayment penalties helps us stand apart from other lenders. Most lenders, in addition to their loan costs, require a pre-payment penalty of some sort. This can be a standard 6 month or 1 year early payoff penalty or in some cases can be a specific number of months of required interest. If a lender requires that you make 3 or 6 payments of interest on a loan prior to being paid off, it is the same thing as a prepayment penalty. A requirement for certain number on month’s interest guarantees a lender that the loan will be more profitable. If a borrower is required to make a specific number of interest payments, it adds to the cost of the loan. For example, if a borrower is required to make 90 days of payments on a loan, it is the equivalent of adding 2 to 3 percent of the loan amount in loan costs.
Commercial Loan Corporation has no prepayment penalties of any kind. None. This can be extremely beneficial to the customer financially. If the money to pay the loan back is readily available we have worked with customers that pay off our loan immediately eliminating virtually any interest costs on the loan. This means that the initial fees charged for the loan is the entire cost of the loan.
Here is an example…
Say the customer has a personal line of credit available to pay off our loan from their lending institution. We can work with them to determine the best timing to fund our loan depending on the availability of their funds. If we fund our loan on Monday, they can pay off our loan on Tuesday, effectively eliminating the accrual of interest. This can be a great tool to potentially save thousands of dollars in interest payments.
We also work with the attorney and the customer to decide when to file the re-conveyance showing that the loan has been paid off. Some of the attorneys we work with want to wait to file the reconveyence (proof the loan is paid off) until they are satisfied that the county has concluded the Exemption for Reassessment of property taxes. We can accommodate the preference of the attorney in the timing of filing the reconveyence.
Don’t let any of this confuse you, we are here to answer any questions you have on the subject and look forward to helping! We tend to do business the old-fashioned way. We do what we say we’re going to do and we focus on speed and customer service.
For assistance, contact us at 877-464-1066 or call our California Account Executive Mike Riggs at 714-442-8901 or firstname.lastname@example.org.