Category Archives: Trust Loan Blog

Tanis Kluever on the benefits of a California Proposition 19 Trust Loan

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Commercial Loan Corporation is California’s premier lender for Proposition 19 Trust Loans. We specialize in providing trust loans to clients who are inheriting a family home and would like to keep a parents low property tax base but do not have the funds available in a trust or estate to make an equal distribution to all of the heirs or beneficiaries. Our trust loans help clients accomplish exactly that. In this video, Senior Account Executive Tanis Kluever explains how a trust loan can benefit you and the other beneficiaries of the trust or estate. On average we allow the person who is inheriting the family home to save over $6,400 a year in property taxes by avoiding property tax reassessment. Additionally, we help the other members of the trust save on average over $40,000 by avoiding the costly realtor fees associated with selling the family home.  Those funds are then able to be distributed to all of the beneficiaries, allowing for everyone to benefit.

Are your or a family member interested in preserving a parents low property tax base on a family home?  Did your attorney or fiduciary recommend that you obtain a trust loan? Look no further. We help more clients obtain a trust loan than any other lender in California. We have helped hundreds of clients keep a parents low property tax base with a loan to trust and we can help you as well.  Call us at (877) 464-1066 and we will provide you with a free cost benefit analysis.

What is a trust loan?

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Please watch our video covering some of the benefits on a trust loan or loan made directly to a probate estate. If you would like to learn more about a trust loan or how much you may be able to save by equalizing a trust and avoiding property tax reassessment, please call us at (877) 464-1066.

Trust Equalization Loan

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Trust Equalization Loan

Trust Equalization Loan

A trust equalization loan is a loan to a trust or irrevocable trust to facilitate an equal distribution of assets when disproportionate assets such as a home are involved. Trust equalization loans can be a requirement when one of the child beneficiaries is attempting to do a parent to child transfer in order to keep a parents low property tax base on an inherited home and the trust contains insufficient cash assets to make an equal distribution.

We provide more loans to irrevocable trusts than any other lender in California. We specialize in assisting beneficiaries who inherit a home, transfer and keep a parents property tax base.  We have provided over 550 trust equalization loans and on average save our clients more than $6,500 a year in property taxes.

Are you in the process of inheriting a home from a parent? If so, call us at (877) 464-1066 and we can provide you with a free trust equalization loan benefit analysis. I will let you know exactly how much you can expect to save each year in property taxes and one of our helpful trust loan account executives will answer all of your questions on how the process works.

Meet our team at the CalCPA Springfest Event on May 23rd

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CalCPA Event

CalCPA Event

Meet the Commercial Loan Corporation Trust & Estate Loan team at this years 2023 CalCPA Springfest Event at Excite Ballpark (San Jose Giants Stadium). Mix and mingle with Silicon Valley’s top attorneys, bankers, and CPAs. This is a great opportunity to energize and expand your professional network while enjoying the historic sporty ambiance with its inviting outdoor spaces. Commercial Loan Corporation is sponsoring this years event and we hope to see you there. For more information or to sign up for the event, visit CalCPA.org

Proposition 19 Transfer Benefit Increased to $1,022,600 on 2/16/2023

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Proposition 19 Benefit Increase

Proposition 19 Benefit Increase

California Proposition 19 allows transfers of a family home or family farm between parents and their children without causing a change in ownership for property tax purposes. It is an exclusion from change in ownership. Allows transferee to retain the
taxable value of the transferor. “Taxable value” means the base year value plus inflationary adjustments, commonly referred to as the factored base year value.

Proposition 19 applies to a purchase or transfer of a family home between parents and their children if the property continues as the family home of the transferee. The transferee must live in the home as their primary residence within one year of transfer and file for the homeowners’ or disabled veterans’ exemption within one year of transfer to qualify for the exclusion.

• For a family farm, defined as real property under cultivation or which is being used for pasture or grazing or that is used to produce any agricultural commodity as used in Government Code section 51201, there is no requirement that the family farm contain a home that the transferee lives in to qualify.

• There is a limit to the value that can be excluded for a family home or each legal parcel of a family farm. The value limit is equal to the property’s taxable value (factored base year value) at time of transfer plus $1 million. If the market value exceeds this limit, the difference is added to the taxable value. (Note: The $1 million allowance will be adjusted annually by the State Board of Equalization (BOE) beginning in 2023.)

Additional information on the Proposition 19 Intergenerational Transfer can be found here on the California BOE Website

On February 16th, 2023 the California Board of Equalization increased the transfer exclusion benefit from $1,000,000 to $1,022,600. As a policy, every 2 years the Board of Equalization reviews the Proposition 19 benefit and will adjust it based on the Federal Housing Finance Agency house price index numbers. The goal of these modifications is to keep California Proposition 19 effective over time as the values of a home change. The next adjustment to the Proposition 19 parent to child transfer benefit and home property tax transfer benefit is scheduled to occur on February 16, 2025.

The following is the documentation from the California Board of Equalization on the increase to the Proposition 19 Benefit:

California Proposition 19 Benefit Increase for February 16th 2023

If you, a family member or client requires assistance with obtaining a California Proposition 19 Parent to Child Transfer benefit, please call us at (877) 464-1066.

Orange County Bar Association Trust & Estates Spring Social Event

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Orange County Bar Association Spring Social

Orange County Bar Association Spring Social

Commercial Loan Corporation is sponsoring the OC Bar 2023 Spring Social. Tanis Kluever and Jasmine Merritt, two of our Commercial Loan Corporation Account Executives will be in attendance. If you are also attending the Orange County Bar Association Outdoor Spring Social, please make sure that you say hello. You may register online for the event at https://www.ocbar.org/.

The event is being held at the Gokal Law Group Office, located at 505 Technology Drive, Irvine, CA 92618 from 5:30PM to 7:30PM. We look forward to seeing you there.

Proposition 19 Equalization Loan

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California Proposition 19 Equalization Loan

Equalization Loan

Equalization Loan

A property that is a candidate for the parent to child exclusion under Proposition 19 will almost always be held in a trust or an estate. If there is only one beneficiary or all of the child beneficiaries are keeping the property together; the process is fairly simple. If there are multiple child beneficiaries and one or more will not be taking the property as part of the distribution; there are some requirements that must be met if you would like to gain a full exclusion from property tax reassessment. The most important requirements are:

  • The distribution of the assets must be equal.
  • The will or trust may not have language prohibiting a non-pro-rata distribution (a non-pro-rate distribution permits the administrator or trustee to divide the assets among the beneficiaries using different assets. A pro-rata distribution means each beneficiary receives their entitled percentage of each asset).

In the event there are not enough liquid assets to make an even distribution, the irrevocable trust or probate estate can obtain an Equalization Loan from a 3rd party to equalize the distribution. Here is an example of how an equalization loan works. For this example the family home is the only asset of the trust or estate and is valued at $750,000. Let’s assume that there are no liens on the property, there are three child beneficiaries, only one child will keep the property and the other two beneficiaries want cash:

The trust or estate would be valued at $750,000
Each beneficiary would be entitled to $250,000 ($750,000 divided by the 3 children)
The trust or estate would obtain an Equalization Loan in the amount of $500,000
Beneficiary 1 would receive $250,000 in cash
Beneficiary 2 would receive $250,000 in cash
Beneficiary 3 (Acquiring Beneficiary) would receive a $750,000 property with a $500,000 loan against it or $250,000 in equity ($750,000 minus $500,000)

This is a simplified example but gives you an idea of how the equalization loan works. The actual calculations may be different when factoring in loan costs and other expenses of the trust or estate. Most lenders are unwilling to lend to an irrevocable trust or an estate involved in probate, but we specialize in it and helping clients qualify for California Proposition 19 and providing Equalization Loans. If you, a family member or a client is in need of a Proposition 19 Equalization Loan to avoid reassessment on an inherited home, please call us at (877) 464-1066.

More information on Proposition 19 can be found at https://proposition19.org/

California Proposition 19 – Avoiding Property Tax Reassessment on an Inherited Home

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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.

You can learn more about California Proposition 19 at Proposition19.org

Keep a parent’s property tax base on an inherited home

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Loans to Trusts and Estates

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.

Bridge Loans to Trusts

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Bridge Loans to Trusts

Bridge Loans to Trusts

Bridge Loans to Irrevocable Trusts

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.