When you are considering keeping an inherited home from a parent and need to borrow money to buyout siblings or beneficiaries, it is important to make sure that it makes financial sense to do so. To assist you in doing so, we created the Commercial Loan Corporation Trust & Estate Loan Benefit Calculator.
Our trust and estate loan benefit calculator will help you quickly and easily determine if it makes sense to apply for a Proposition 58 exclusion from reassessment and take out a trust or estate loan. The loan benefit calculator compares your property tax savings to your estimated loan expenses and determines approximately how long it will take to recover those costs. If you plan on keeping the home longer than it will take to recoup the fees, then the loan is of benefit; if not then it would make more sense to not conduct the loan.
Dealing with Trusts and Estates can be a complicated matter. It can go from complex to incomprehensible if you do not understand the terminology. To help you better understand, we have compiled a list of some of the most common terms used in trust and estate matters to assist you. If you need any additional clarification, we are here to assist you. Please call us at 877-464-1066 for any needs you may have.
Common Terms For Trusts And Estates
Appointer – The appointer is the person who can appoint a new trustee or remove an existing one.
Appointment – The act of appointing, giving an asset from the trust to a beneficiary; or the name of the document which gives effect to the appointment. The trustee’s right to do this, where it exists, is called a power of appointment. Sometimes, a power of appointment is given to someone other than the trustee, such as the settlor, the protector, or a beneficiary.
Beneficiary – A beneficiary is anyone who receives benefits from any assets held by the trust.
Bridge Loan – A bridge loan is short term financing that is typically paid back or refinanced. Often times the term on a bridge loan can range from 3 to 12 months.
Estate Planning – The process of arranging ones property and affairs to insure their disbursement in the most effective way possible.
Power of Attorney – A power of attorney is a legal instrument that empowers another person as agent to deal with one’s property and affairs.
Executor – The one nominated in a Will and or appointed by Probate Court to manage and distribute a decedent’s estate in accordance with the terms of the Will.
Fiduciary – A fiduciary is a person to whom property or power is entrusted for the benefit of another.
Proposition 13 – California Proposition 13 is a constitutional amendment enacted in 1978. The Proposition 13 Amendment limits the tax rate increase that can be charged annually on real estate in California. The proposition restricts the annual increases of assessed value of real property to an inflation factor, not to exceed 2% per year. California Proposition 13 also prohibits reassessment of a new real estate property tax base year value except for in cases of either change in ownership, or completion of new construction.
Proposition 58 – California Proposition 58 allows for the exclusion for reassessment of property taxes on transfers between parents and children. If the sale or transfer of real property is between a parent and their child, under limited circumstances, the property will not be reassessed if certain conditions are met and the proper application is filed in a appropriate amount of time. Proposition 58 allows the new property owner to avoid property tax increases when acquiring property from their parents. The new owner’s taxes are instead calculated on the established Proposition 13 factored base year value, instead of the current market value when the property is acquired from the parent.
Protector – A protector may be appointed in an express, inter vivos trust, as a person who has some control over the trustee usually including a power to dismiss the trustee and appoint another.
Settlor – This is the person or persons who creates the trust. They may also be known as a Grantor.
Trust – A trust is an arrangement in which ownership of assets is transferred to a Trustee, who thereafter has a fiduciary duty to distribute the trusts assets to the beneficiaries of the Trust.
Trust Deed – A trust deed is a legal document that defines the trust such as the trustee, beneficiaries, settlor and appointer, and the terms and conditions of the agreement.
Trust Distributions – A trust distribution is any income or asset that is given out to the beneficiaries of the trust.
Trustee – A person, corporation who administers a trust. A trustee is considered a fiduciary and owes the highest duty under the law to protect trust assets from unreasonable loss for the trust’s beneficiaries.
If you require a third party bridge loan to take advantage of the benefits of proposition 58, please call us at 877-464-1066 so that we may assist you.
Commercial Loan Corporation is very excited to welcome Tanis Alonso as the latest addition to our team! Tanis is an Account Executive in our Trust & Estate Bridge Loan Department. Her primary role is to assist clients, attorneys, trust administrators, paralegals and fiduciaries in obtaining short term bridge loan financing for beneficiaries and heirs that want to take advantage of Proposition 58’s exclusion from property tax reassessment to preserve a parents low Proposition 13 tax base on inherited property.
“My commitment to my clients is that i will always put your needs first! You can expect 100% transparency from me and i will always look out for your best interest.
Prior to joining the Commercial Loan Corporation team, I attended California State University, Fullerton for Business Management. I obtained my Real Estate license in 2005, but continued down the path of Restaurant Management advancing into a Customer Service Specialist and Developmental Training Manager. I have a passion for taking care of others, am very detail oriented and have a do whatever it takes mentality.
Outside of work, I like to spend my free time with my family and volunteering with various organizations. My favorite thing to do is take my dog Beau to the dog park so he can play with all his friends.
I am beyond excited to start a new journey with Commercial Loan Corporation and to be working alongside a group of individuals with the upmost integrity and expertise.”
Contact Information For Tanis Alonso:
Tanis Alonso, Account Executive for the Trust & Estate Bridge Loan Department can be reached at 714-442-8995 or by email at firstname.lastname@example.org. If you are interested in more information on our Private Money Bridge Loans for Trusts & Estates, please call Tanis or complete the short form located here. For immediate assistance from any member of the Bridge Loan department, please call us at 877-464-1066.
For additional information on our bridge loans that assist clients who are inheriting real estate from a parent and want to keep the existing low property tax payment, please click here.
Commercial Loan Corporation Will Make You Look Like A Hero
At Commercial Loan Corporation, we believe that one of our jobs is to make our business partners look good! When you save your clients thousands of dollars in property taxes each year, simply by recommending a Commercial Loan Corporation Trust or Estate Loan, you are going to look like a Superhero!
Commercial Loan Corporation specializes in making 3rd party loans to trusts and estates. These trust and estate loans allow acquiring beneficiaries and heirs to qualify for an EXCLUSION FOR REASSESSMENT OF PROPERTY TAXES granted by California Proposition 58. When a trust or estate does not have sufficient liquid assets to make an even distribution, you can show your clients how a 3rd party loan will allow them to retain their parents low Proposition 13 property tax base. The process is typically both faster and less expensive than having a client sell their home. In fact, we can often times fund a third party trust or estate loan in as little as 7-10 days. We specialize in these transactions, we are here to serve you and we charge absolutely no prepayment penalties.
Do you currently have any clients that may be able to benefit from one of our loans or have any questions I may be able to answer? If so, please call us or pass on our information to your client. We can be reached at 877-464-1066!