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.

USC Gould Trust and Estate Conference 2023

USC Gould Trust and Estate 2023 Conference

The 2023 USC Gould Trust and Estate Conference

The 49th Annual Trust and Estate Conference will take place on Friday, November 17, 2023, at the Westin Bonaventure Hotel in Downtown Los Angeles. Commercial Loan Corporation will once again be sponsoring the event. Two of our Senior Account Executives, Tanis Kluever and Thad Farrell will be attending the event and available to answer any questions you may have on California Proposition 19 and our Trust and Estate loan programs.

For 49 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 participants for unrivaled networking and learning opportunities from both the speakers and your professional colleagues. The Conference is 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. what’s included?

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.

If you have any questions regarding a loan to a trust or estate or about qualifying for a California Proposition 19 Parent to Child Property Tax Transfer, please call us at (877) 464-1066 and we can answer any questions you have.

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 Loans and the Proposition 19 Exclussion from Property Tax Reassessment

Trust Loans and the Parent to Child Exclusion for Reassessment

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.

Additional information on this is available on the California Board of Equalization website located here.

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.

Commercial Loan Corporation – A Complete Trust & Estate Loan Solution

California Trust and Estate Lender

California Trust and Estate Lender

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.

Trust Loans

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.

Probate Loans

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.

2022 USC Gould Trust & Estate Conference

Join Commercial Loan Corporation at the USC Gould Trust and Estate Conference

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:

When?

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.

Why attend?

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.

What’s included?

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!

If you have questions on California Proposition 19 prior to the conference or are currently in need of a trust loan, please call us at (877) 464-1066 so that we may assist you. If you would like to signup for or find additional information on the 2022 USC Gould Trust and Estate Conference, please visit here. Or view the PDF version of the brochure here: USC Gould Trust & Estate Brochure

Parent to Child Property Tax Transfer

Parent to Child Property Tax Transfers in California

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.

Do property taxes increase when you inherit a home?

Do property taxes increase on an inherited home?

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.