Non Pro Rata Distribution Loans For Trusts and Estates – Call Commercial Loan Corporation at 877-464-1066
Non Pro Rata Distribution Loans For Trusts and Estates
Commercial Loan Corporation is one of California’s leading providers of loans to trusts and estates. Our specialized mortgage infuses a trust or estate with cash so that a non pro rata distribution can be made. A non pro rata distribution occurs when each heir or beneficiary receives an equal proportion of the entire estate or trust distribution but not of each asset. When a trust or estate does not hold sufficient cash assets, our loan provides the trust or estate with the cash needed to equalize the distribution or payout of the estate. This allows one of the beneficiaries or heirs to keep an inherited home and take advantage of the Proposition 58 tax benefit; which allows the California Proposition 13 protected low tax base from their parent to be transferred to the child who is inheriting the home.
On average our Non Pro Rata Trust Distribution and Probate Estate Distribution Loans save clients over $6,200 per year in property taxes. Our process is quick and easy. In fact we can often times complete a non pro rata loan in as little as 7 business days. Our loan is made directly to the trust.
If you, a family member or a client that you represent requires a California Proposition 58 Non Pro Rate Distribution Loan, please call us at 877-464-1066. Even if you are attempting to distribute and irrevocable trust, we have loan programs that can assist you. We can answer any questions you have on our non pro rate distribution loans and provide you with a free cost benefit analysis to see if one of our trust and estate loans makes sense for you.
Commercial Loan Corporation will be attending the 2019 – 41st Annual UCLA / CEB Estate Planning Institute at the Marriott in Marina del Ray. If you will be attending the event please visit our Senior Account Executive, Mike Riggs at our booth. Mike will be available to answer any questions you may have on our trust & estate loan programs; including our Proposition 58 loans that can allow for an equal distribution of a trust or estate so that a child can keep a parents low property tax base value on an inherited home. If you will not be attending the Estate Planning Institute event, but have questions on California Proposition 58, please call us at 877-464-1066 and we would be happy to assist you.
Commercial Loan Corporation is a California Lender specializing in Loans to Irrevocable Trusts. We lend the cash you need to distribute a trust and receive your proposition 58 exclusion from property tax reassessment on an inherited home.
Loans to Irrevocable Trusts in California
When it comes time to distribute an irrevocable trust and funds are needed to make an equal distribution, you will find that most lenders are unwilling to lend on real estate that is held in a trust. This becomes extremely problematic if you plan on filing for a California Proposition 58 exclusion from property tax reassessment on real estate being inherited from a parent.
One of the requirements to qualify for an exclusion from property reassessment is for the trust to make an equal distribution of the trust assets to all child beneficiaries. Often times that is not possible to do if one of the trust assets is an expensive piece of California real estate. In the situation where a home is creating an unequal trust distribution, a mortgage or third party loan must be taken out to infuse the trust with enough cash so that the equal distribution can be made. That way one child receives the encumbered property while others receive cash and or other assets, equalizing the distribution of the trust. The state does not allow for the acquiring beneficiary to use their own funds to equalize the distribution. Doing so would create a sibling to sibling buyout and make the beneficiary ineligible for an exclusion from reassessment. That is why a third party loan is required. The problem is that most California lenders will require that the property be removed from the trust in order to lend on the home. Unfortunately, once that is done, you have jeopardized your ability to qualify for the Prop 58 property tax reassessment exclusion since the assets of the trust were distributed unevenly at that point.
The solution is to have a mortgage placed on the home while the property is still held in the irrevocable trust. That is where Commercial Loan Corporation comes in. We are a leading California lender of mortgages for homes held in an irrevocable trust. What makes us unique is that we lend to the trust as opposed to a beneficiary; allowing the beneficiary to qualify for the California Proposition 58 exclusion from property tax reassessment on a home inherited from a parent.
If you, a client, or someone that you know is in need of a loan to a trust, please have them call us at 877-464-1066. We specialize in the process and can answer any questions that they may have. We can also provide them with a free loan benefit proposal. The proposal compares the cost of the trust loan to the benefits received from a Prop 58 parent to child property transfer, ensuring that the trust loan is beneficial. We can also determine how much additional funds you would receive by maximizing your trust distribution. On average we help clients distribute an additional $42,000 to beneficiaries my maximizing their trust distribution.
Trust Loans Booth at the California NAELA Joint Chapters 2019 Summit in San Francisco
Loans to Trusts & Estates
Mike Riggs, Senior Account Executive for Commercial Loan Corporation is attending this years California NAELA Joint Chapters 2019 Summit in San Francisco. If you are an attendee and have any questions on our California Proposition 58 safe loans for Trusts & Estates, please visit Mike at our booth. He can review our Trust Loan Benefit Calculator with you and determine if a trust loan makes sense for your client. As you can see from the sign in the photo above, on average we save our clients $6,200 per year in property taxes by helping them qualify for a parent to child transfer and exclusion from property reassessment.
If you are not attending the California NAELA 2019 Summit, but would like more information on our Proposition 58 third party loans to trust and estates, or would like information on maximizing your trust distribution; please call us at 877-464-1066. We can answer any questions that you might have provide you with a free benefit analysis. On average we help clients distribute an additional $41,000 in proceeds to beneficiaries!
Call Us At 877-464-1066 For Trust Loan Information
How to keep a parents property tax rate on an inherited home.
KEEP A LOW PROPERTY TAX RATE ON AN INHERITED HOME
When inheriting a home from a parent or grandparent, California Proposition 58 may allow you to avoid a property tax reassessment. Taking advantage of this Proposition 58 provision can save you thousands of dollars each year in property taxes. In fact, our average client saves over $6,000 a year in property taxes.
In order to avoid a property tax reassessment, certain procedures must be followed and documents must be properly submitted to the county tax assessors office. The process can be complicated. This is especially true when the property is held in a trust or when multiple siblings are inheriting property, money or other assets from a parent. An even distribution of assets is required to qualify and a beneficiary can not contribute their own funds to make an equal distribution. This is where Commercial Loan Corporation can help. We are one of just a few California lenders who provide loans that will not jeopardize a Proposition 58 approval. We are able to lend directly to a trust and do not require a personal guarantee.
Commercial Loan Corporation has a track record of success. We work with a California Property Tax Consultant who has over 15 years of experience working in the California Tax Assessors office. With his assistance we can help you solve even the most challenging cases and help you avoid a property tax reassessment. Call us at 877-464-1066 and let us help you keep a low property tax rate on an inherited home.
We Maximize Trust & Estate Distributions, Saving Clients Thousands of Dollars.
Maximize the Distribution of a Trust or Estate!
At Commercial Loan Corporation we specialize in maximizing trust distributions and providing innovative finance options for real estate held in a trust. On average we save our clients $42,000 when it comes time to distribute a trust. Depending on the worth of the trust and real estate involved that number can be significantly higher.
Maximizing trust distributions is not all we do.
We also help clients preserve a parents low property tax base on an inherited property. On average retaining a parents low property tax base saves our clients over $6,200 a year in property tax payments.We are one of just a few California lenders that offers third party financing to a trust; allowing a client to take advantage of Proposition 58 and keep a parents low Proposition 13 protect property tax rate.
We also have specialty loan programs that enable our clients to tap into the equity in their real estate with no tax consequences.
We even have programs that allow you to access the equity in a home to create a “nest egg” available in case of emergency.
We offer free consultations and one of our trust & estate specialists can help you determine which options are right for you and how much you may be able to save.
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.
Orange County Bar Association Event, Costa Mesa, CA
Join Commercial Loan Corporation on October 10th, 2018 at the upcoming Orange County Bar Association event. The Orange County Bar Association Trust & Estates Section Presents “SO YOU THINK YOU CAN NEGOTIATE? Learn Skills and Techniques Leading to Successful Resolutions” at 5:30PM on 10/10/2018 in Costa Mesa, CA.
Mike Riggs, Senior Account Executive at Commercial Loan Corporation will be on hand to answer any questions you have on our Trust & Estate Loans. Commercial Loan Corp specializes in lending to Family Trusts and Estates in Probate. If you are unable to make the event, please call us at 877-464-1066. Our team can review a loan scenario with you or a client to see if they might benefit from one of our Trust & Estate loan programs. Often times, our trust and estate financing is used to equalize a trust or estate distribution to take advantage of Proposition 58 and avoiding property tax reassessment on a home that was inherited from a parent.
Our specialized Trust & Estate finance programs can help a client distribute their trust faster, provide cash for legal fees and save money! Our Trust Loans are typically less expensive than selling a home. That means more money for the beneficiaries and we can fund a Trust or Estate Loan in as little as 7 days!
On average we save our clients over $6,000 a year in property tax payments by avoiding property tax assessment on an inherited property. If you are looking for a loan to a Irrevocable Trust, Family Trust or Estate, please call us at 877-464-1066 for additional details or a free benefit analysis.
When setting up a trust or dealing with trust and estate matters, finding a qualified Trust & Estate Attorney is highly advised! You can save money attempting to handle some items yourself, but be warned that making mistakes can sometimes end up being very costly.
This is especially true if you are inheriting a home from a parent and it is your goal, or a siblings goal to use Proposition 58 to keep a parents low property tax base. In many cases a trust or estate contains a variety of assets including cash and material items in addition to real estate. When there are multiple beneficiaries involved, and one of the beneficiaries wants to keep the home, the distribution can be complicated. If not handled correctly, you may lose your ability to receive an Exclusion From Property Reassessment. This can cause the homes value to be reassessed when transferred and in turn the property taxes may skyrocket.
Commercial Loan Corporation provides financing to Trusts and Estates to help you receive an exclusion from property reassessment. By doing so, we save our clients on average over $6,000 a year in property taxes. We are constantly working with qualified Attorneys and Property Tax Consultants in California to help their clients with Proposition 58 property transfers. If you are in need of financing to assist a trust or estate, or are looking for a Trust & Estate Attorney in your area to assist you, please call us at 877-464-1066. We would be happy to refer you to a California Trust & Estate Attorney that we have worked with in the past and who is knowledgeable on Proposition 58 and the parent to child property tax transfer process.
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.