Step Tax and Estate Planning Annual Institute 2024

Step Tax and Estate Planning Annual Institute 2024

Step Tax and Estate Planning Annual Institute 2024

Commercial Loan Corporation is proud to sponsor the Step 2024, 12th Annual Institute on Tax, Estate Planning and World Economy. This years event will take place at the Balboa Bay Club in Newport Beach, California from February 15th-17th, 2024. If you are interested in attending, you can visit the Step OC website here.

The following information on the event was located on the Step Orange County website. Time to begin thinking about STEP Orange County’s Annual Institute on Tax, Estate Planning, and the World Economy!  With the best speakers in the industry coming to Newport Beach from all over the world, and a third-day featuring material that will be of particular interest to practitioners seeking ethics and bias credits. The material is more relevant than ever, and will be delivered in multiple language channels through technology.

We also moved the Institute to a new facility – the fantabulous Balboa Bay Club Resort, right on Newport’s Harbor! As we are at such a beautiful facility near so many fantastic things to see and do, it would be a crime to not take advantage, so we are actually injecting FUN into the conference. There will be Duffy rides, special dinners, local attractions for our out-of-town attendees (and locals too), and maybe even a special Key Note Speaker, who may or may not be in the financial services industry.

Conference program includes:

· Hot Topics – 2024 Estate, Gift and GST updates with Andy Katzenstein
· Advanced Generation Skipping Tax Issues
· International Estate Administration
· US-UK Estate Planning
· US-China Estate Planning
· US-LATAM Estate Planning
· Corporate Transparency Act
· Modern Families and Trusts

Two of our Senior Trust & Estate Loan Account Executives, Tanis Kluever and Thaddeus Farrell will be attending the event. If you have any questions on a trust or estate loan they would be more than happy to assist you. If you have any question on our specialized loans to trusts and estates but are unable to attend this years estate planning event, please contact us at (877) 464-1066.

How to add funds to an Irrevocable Trust

Adding funds to an Irrevocable Trust for a sibling to sibling buyout

Add funds to an irrevocable trust

How do I add funds to an irrevocable trust?

When adding funds to an irrevocable trust in California you need to be cautious depending on that the purpose of adding the funds is. If ultimately one of the child beneficiaries (if multiple are involved) wants to inherit real estate, a third-party lender should be used if they want to transfer the parent’s low property tax base. Failing to do so could be viewed by the County Assessor as a sibling-to-sibling buyout if they inject their own money into the trust and jeopardize a full property tax reassessment exclusion. When obtaining a third-party loan, it is important to keep in mind that very few lenders will provide financing to an irrevocable trust. Most lenders will insist that during the lending process the home is removed from the trust and the loan be made to an individual as opposed to the trust once again putting the full property tax reassessment exclusion at risk.

Commercial Loan Corporation specializes in providing loans to Irrevocable Trusts. In fact, we are the #1 California Lender for trust loans. We can provide funding to an irrevocable trust for a variety of purposes, but the typical reason is to equalized the assets in a trust so that one of the children can keep the parents low property tax base and avoid reassessment. Are you, a sibling or a client in need of a trust loan? If so, call us at (877) 464-1066 or apply online. We will walk you through each step of the process and have established relationships with many of California’s Trust & Estate Attorneys.

Tax and Estate Planning Forum Event

Tax and Estate Planning Forum Event for October 2023

Tax and Estate Planning Forum Event for October 2023

Join us at the upcoming 2023 California Virtual Tax and Estate Planning Forum on October 16 – 20, 2023. Our Trust and Estate Loan Account Executive Tanis Kluever has recorded a video for the event that is available on the Tax and Estate Planning forum website.

This year’s Trust & Estate Forum will be held virtually from October 16 to 20, 2023. This format offers enhanced flexibility, allowing you to tailor your participation to suit your schedule. Additionly, all live sessions will be recorded for your convenience. When you register, your fee will include on-demand online access to these recordings, allowing you to view them at your own pace starting November 4, 2023, and continuing until May 30, 2024.

The virtual online live format enables you to actively engage with the speakers in real time through online participation. You’ll have opportunities for Q&A sessions, and the structure of the format will be designed to meet the requirements for continuing education credit, as permitted by the relevant accrediting agencies.
Certain accrediting agencies mandate continuing education credit exclusively for participants of the live virtual broadcast. You can view the Trust and Estate Planning Forum website or call (800)332-3755 for additional details on this years event. The live virtual format will deliver a seamless and enriching experience, providing the same valuable insights and networking opportunities as the in-person event. We hope to see you there.

If you have questions on a Trust or Estate Loan or are inheriting a home and are interested in transferring a parents property tax base, please call us at (877)464-1066 and one of our qualified Account Executives will answer all of your questions.

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

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?

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

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

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

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

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

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

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

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