What is a Probate Loan?

Probate Loans

Probate Loans

Probate Loans & Estate Loans

Commercial Loan Corporation is a California based provider of probate loans. Our probate and estate loans are specifically designed to help heirs, beneficiaries and administrators who are in need of financing on a home involved in the probate process. Commercial Loan Corporation is California’s premier probate lender. We have helped our clients save over 12 million dollars in property taxes by transferring a parent’s low property tax base on an inherited home. We provide estates with the cash needed to make an equal distribution and qualify for a California Parent to Child Property Tax Transfer.

Our specialized probate loans and estate loans allow heirs, beneficiaries and probate administrators to buy out siblings, settle debts, make improvements to a home, and prevent property tax reassessment on a home being inherited from a parent. We offer affordable loans that are customized to your needs. We provide each client with a Free Upfront Probate Loan Benefit Analysis that shows your estimated loan proceeds, property tax savings and the costs associated with the loan.  On average our probate loans, estate loans and trust loans save our clients over $6,550 in property taxes each year by avoiding property tax reassessment on an inherited home.

If you, a sibling or a client is interested in a California Probate Loan, Loan to a Trust or Estate Loan, we are here to assist you. Call us at 877-464-1066 and we can provide you with a free estimate showing you how much you might be able to save by avoiding property tax reassessment with the help of a probate loan.

What is a Probate Loan?

Probate loans are loans provided to a home involved in the probate process. Probate is the administration of a deceased person’s estate, with or without a will. A probate loan or estate loan provides funds to the probate estate to accomplish a goal that requires the conversion of equity in the real estate into cash. The probate loan is made directly to the estate. A probate loan must be approved by the probate administrator. We can help guide your through the process and if needed, put you in contact with an Attorney or Property Tax Consultant to assist you with the process.

Why is a Probate Loan needed in some situations?

A Probate loan or estate loan, provides cash to the estate for a variety of purposes. During the probate process, which can be lengthy, the administrator of the estate may need funds to administer the estate. Examples of this may include utility costs, property taxes, property insurance, association fees, legal expenses, paying off outstanding debt, mortgage payments, or property maintenance expenses. Without a probate loan, the estate may not be able to afford to meet the costs of these expenses. A probate loan or estate loan is also often used to buy out siblings when multiple siblings are inheriting a home from a parent. For example, the child that wants to keep the family home can take out an estate loan and buy out the other siblings with the cash provided from the probate loan. If a child wants to keep a parents low property tax base on an inherited home, the County Assessors Office must approve the exclusion for reassessment. One of the requirements of a California Property Tax Transfer and Exclusion for Property Tax Reassessment is that an equal distribution of assets be made to all child heirs / beneficiaries and that if sufficient cash assets do not exist in the estate, that a non-personally guaranteed 3rd party loan be used to equalize the distribution. If the process is not done correctly, the property may be reassessed at the current market value. On average we are able to save our clients over $6,500 per year in property taxes by helping them avoid property tax reassessment on the inherited home. Additionally, we save the estate over $50,000 on average by avoiding the costly realtor fees associated with selling a home, and all of the heirs / beneficiaries are able to take advantage of that savings. If you are interested in finding out if a probate loan might be a good option for you, please call us at (877) 464-1066

Trust & Estate Loan Benefit Calculator

Trust & Estate Loan Benefit Calculator

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.

So watch this short video on our Trust & Estate loan benefit calculator and then try the calculator yourself at https://cloanc.com/nprd-calculator/

For any additional assistance or to begin the Trust or Estate loan process, please call us at 877-464-1066.

Trust and Estate Terminology

Trust and Estate Terms

Trust and Estate Terms

Terms for Trusts & Estates

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.

Information and terms for trusts and estates found at: trustandestate.loans

Always Watch Out For Prepayment Penalties

Trust and Estate Loans - Beware of Prepayment Penalties

Trust and Estate Loans – Beware of Prepayment Penalties

Trust and estate mortgages provide liquidity to an otherwise illiquid trust. This cash infusion to the trust or estate allows for an even asset distributions to be made. The equal distribution of a trust or estate becomes critical when one of the beneficiaries or heirs wants to take advantage of California Proposition 58 (parent to child property transfer) and benefit from an exclusion for property tax reassessment. Depending on the property’s current value, the parents assessed property tax value and the property tax rate; doing so could mean a savings of thousands or even tens of thousands of dollars annually! Here is an example of how it works.

Proposition 58 Exclusion From Property Tax Reassessment Example

Say your parent initially purchased the home for $75,000 and over the years the home has increased in value to $850,000. Thanks to California’s Proposition 13, the property’s tax assessed value can not increase by more than 2% annually. So even though the actual value of the property is $850,000 the County’s assessed value for property tax purposes may be only $112,000 (as an example). If the property tax rate for the area is 1.2% here is what you would be looking at:

Current Property Taxes = $112,000 x 1.2% = $1,344
Property Taxes If Reassessed = $850,000 x 1.2% = $10,200
Proposition 58 Exclusion From Reassessment Annual Tax Savings = $8,856

So if an equal distribution of the trust or estate can be made allowing for the child inheriting the property to qualify for the Proposition 58 exclusion from property tax reassessment, the savings in property taxes can be significant!

Finding the right Trust or Estate Loan

When it comes time to take out a trust, estate or probate loan, you have a few options and choosing the right private money or hard money lender may save you potentially thousands of dollars in fees and expenses! In almost all cases, Trust and Estate loans are intended to be short term financing options. The lender provides the trust or estate with cash, the assets of the trust or estate are distributed equally, and the beneficiary or heir files for the parent to child exclusion from property tax reassessment. Once the exclusion is granted, they are then able to refinance the trust or estate loan with out jeopardizing the low property tax rate that was transferred from the parent. Since these are short term loans, many of our competitors have chosen to charge prepayment penalties to make additional income on the loan. Worse yet, some trust and estate lenders will disguise their prepayment penalty by referring to them as minimum required months payments or set a minimum amount of interest requirement. Depending on the loan amount, those prepaid or required interest charges could add up to several thousand dollars. Commercial Loan Corporation charges NO prepayment penalties and has NO minimum interest requirements. Instead we do our best to provide you with flexibility when it comes to paying off your loan. In fact we will even recalculate your monthly payment for you if you pay down your trust or estate loan mortgage balance, allowing you to save on interest payments!

To learn more about trust and estate loans and why Commercial Loan Corporation is your best option when it comes to a trust or estate mortgage, please call us at 877-464-1066 or complete our trust and estate information request form at www.cloanc.com.

Trust & Estate Loan Benefit Calculator

Trust and Estate Loan Benefit Calculator

Trust and Estate Loan Benefit Calculator

Trust & Estate Loan Calculator

Are you are considering taking out a third party loan in order to equalize a trust or estate distribution and take advantage of California’s Proposition 58’s exclusion for Property Tax Reassessment? The act of doing so has saved some of our clients thousands of dollars annually and in most situations it makes sense to do so if you plan on keeping the home for more than just a few years. To make sure that the loan is financially beneficial, it is important to compare the costs of the loan with the expected property tax savings. At Commercial Loan Corporation we do not want to provide a loan to a client if it is not in their best interest and that is why we have created the Trust & Estate Loan Benefit Calculator.

Our easy to use trust mortgage calculator only requires you to enter a few fields of information and then does the rest of the work for you! Simply input the current value of the property in question, the number of siblings who have an interest in the property, the existing low Proposition 13 protected property tax rate and your desired loan amount. From there we can estimate everything from your Prop 58 Property Tax Savings, your proposed loan costs and the time it will take you to recoup your loan expenses. Here is an example of what our easy to use Trust Loan Benefit Calculator looks like:

Trust Loan Calculators

Trust Loan Calculators

Try Out The Trust & Estate Loan Benefit Calculator

Our Trust & Estate Loan Benefit Calculator is free and easy to use. Click here to try it our for yourself. If you have any problems using the calculator, or have questions on trust or estate loans or would like to start the loan process, please call us at 877-464-1066. The Trust Loan Calculator is meant for estimation purposes only. When we speak with you, we will provide you with a detailed trust loan cost estimate and help you to determine you exact Proposition 58 property tax savings. Often times we are able to complete your trust loan process in under 10 days!

 

Retaining A Parents Proposition 13 Property Tax Rate When Inheriting A Property In A Trust.

Trust Loans, Estate Loans and Probate Loans

Commercial Loan Corporation – Mortgages For Trusts, Estates and Probate. We can assist you in retaining your Proposition 13 tax rate.

Retaining A Parents Low Proposition 13 Property Tax Rate

When inheriting a property, the ability to retain your parents or grandparents low Proposition 13 tax rate can be extremely desirable. In fact, in many cases preserving the lower property tax rate can mean a savings of thousands of dollars per year. Unfortunately, this process can also be complicated to achieve in some situations.

California Proposition 58 permits the transfer of real property between parents and children and grants an exclusion for property tax reassessment in some cases. The process of obtaining the exclusion for property tax reassessment becomes an issue for many people when the real estate is held in a trust with multiple beneficiaries and not enough liquid assets to make an even distribution to all of the beneficiaries. That is where Commercial Loan Corporation can help.

Commercial Loan Corporation provides mortgages to trusts and estates. Our trust loan infuses the trust with cash allowing for the equal distribution of the trust and permitting one of the trustees to take possession of the real estate. The process helps to make the individual eligible for a proposition 58 exclusion for property tax reassessment allowing him or her to preserve the parents low proposition 13 tax rate. In addition to loans to trusts, Commercial Loan Corporation also provides estate loans and probate loans to help protect a parents low property tax rate when it is being transferred to a child.

If you or a client of yours could benefit from a probate loan, estate loan or mortgage on a property held in a trust, please have them call us at 877-464-1066 or complete a request for additional information on our website here.