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

California Trust & Estate Bridge Loans

Trust and Estate Bridge Loans

Trust and Estate Bridge Loans

California Bridge Loan Financing To Trusts & Estates

Commercial Loan Corporation specializes in providing bridge loans to trusts and estates. We are one of just a handful of lenders in California that provide bridge financing to trusts. Even more importantly, we specialize in this type of lending. Often times our clients utilize our private money bridge loan financing to allow for an even distribution to be made from a trust or estate. This can be crucial when a client is trying to receive a Proposition 58 granted exclusion from property tax reassessment to preserve a parents low property tax base on inherited property.

Thanks to California Proposition 13, property taxes in California can not increase by more than 2% each year. Since property values in California historically increase at a far higher rate, retaining a parents low property tax base can be incredibly valuable. In fact, on average we save our clients $6,200 a year in property taxes by helping them avoid a property tax reassessment. Over time that savings can compound, making for an incredible benefit. If you are inheriting property from a parent and are interested in preserving their low Proposition 13 property tax base, call us at 877-464-1066 and we can help you determine how much you might be able to save by utilizing one of our bridge loans.

What Is A Bridge Loan?

A bridge loan or bridge financing is a short term loan utilized until a person or trust secures permanent financing. Bridge loans or bridge mortgages are only intended to be held for a short period of time and typically have a term between 1 and 12 months.

Many of our clients either pay our bridge loan off in full after their exclusion from property tax reassessment has been granted or will refinance the debt with a conventional mortgage once the Proposition 58 exclusion has been granted. We are also able to assist our clients with permanent financing if needed. If you, a family member or client is interest in receiving a bridge loan for a trust or estate, please call us at 877-464-1066 so that we may assist you.

California Proposition 58 Parent to Child Transfer of Property Tax Rate

California Proposition 58 Parent to Child Property Tax Transfer

California Proposition 58 Parent to Child Property Tax Transfer

California Proposition 58 and Property Taxes

When inheriting real estate from a parent, one of the primary considerations in determining if you will keep or sell the property is often the expenses associated with the home. Typically one of the greatest expenses is the homes property taxes. In California, Proposition 58 grants qualifying children the ability to retain a parents low Proposition 13 protected property tax rate. Doing so could mean a savings of thousands of dollars each year. Commercial Loan Corporation helps beneficiaries and heirs qualify for their Prop 58 property tax benefits by providing bridge loans to trusts and probate estates so that an even distribution can be made.

Information About Proposition 58

In 1986, California’s Proposition 58 became effective and with certain limitations, it allows for the exclusion from reassessment of property taxes on real estate transfers between a parent and child. In the State of California, real estate is reassessed at market value if it the home is either sold or transferred. The property value reassessment may cause property taxes to increase dramatically in some cases. Preventing a property tax reassessment may save a beneficiary or heir thousands of dollars annually depending on the difference between the existing assessed value and the current reassessed property value. If the transfer of property is between a parent and child, under certain circumstances the property will not be reassessed if all required conditions are met. If applicable, an equal distribution must be made to all beneficiaries and a beneficiary is not permitted to contribute personal funds to equalize the distribution to qualify for an exclusion from property tax reassessment. An application must also be properly filed in a appropriate amount of time to be eligible for a Proposition 58 exclusion from property tax reassessment. When done properly, the new owner’s taxes are calculated on the parents established Proposition 13 factored base year value, instead of the current market value.

California Proposition 58 Limitations

There are some limitations to Proposition 58. For instance, on non primary residences transfers of the first $1 million of real property. The $1 million exclusion applies separately to each eligible transferor. These transfers may be result of a sale, gift, or inheritance. A transfer via a trust also qualifies for this exclusion. Additionally, when applicable an equal distribution must be made to all beneficiaries and a beneficiary is not permitted to contribute personal funds to equalize a trust distribution. In the situation where fund are needed to make an equal distribution, a third party loan is required.  That is where Commercial Loan Corporation can assist you by providing a bridge loan to the trust or estate. The Commercial Loan Corporation third party bridge loan provides enough cash to the trust or estate so that all parties can receive an equal portion of the trust or estate assets and enables one or more of the beneficiaries to receive the home as their portion of the distribution.

Additionally, Prop 58 defines a child as child born of the parent(s), a stepchild while the relationship of stepparent and stepchild exists, a son-in-law or daughter-in-law of the parent(s), and any adopted child who was adopted before the age of 18. Spouses of eligible children are also eligible until divorce or, if terminated by death, until the remarriage of the surviving spouse, stepparent, or parent-in-law. Information found at https://trustandestate.loans

California Proposition 193

California Proposition 193 grants the same rights to a grandchild as Proposition 58 grants to a child. An eligible “grandchild” for purposes of Proposition 193 is any child of parent(s) who qualify as child(ren) of the grandparents as of the date of transfer.

There are some additional requirements and exclusions for Proposition 58 and Proposition 193. Please call us at 877-464-1066 so that we can assist you.

California Private Money Lender

CALIFORNIA PRIVATE MONEY LENDER

CALIFORNIA PRIVATE MONEY LENDER

Bridge Loans For Trusts & Estates

When it comes to choosing a California Private Money Lender or California Hard Money Lender, you have a handful of options to choose from. Selecting the right one might be more important than you think.

Interest Rates, Penalties & Fees

For instance, choosing the best private mortgage lender can have a significant impact on your pocketbook. Lenders make money on a loan in a few different ways. The most common ways are through fees, interest rate premiums and penalties. One of the most important things that separates Commercial Loan Corporation from other California Private Money Lenders is that we do not charge any form of prepayment penalties, we offer competitive fees and have some of the lowest interest rates in the hard money lending marketplace. Prepayment penalties alone can cost a borrower potentially tens of thousands of dollars or even worse, trap them in a high interest rate loan that they no longer want or need!

Customer Service

Another important factor to consider when selecting the right private money lender is customer service. We are aware, that in this day and age, the phrase “Customer Service” almost sounds sarcastic. At Commercial Loan Corporation you are more than just a loan number. We might be a relatively small private money lender, but we are big on the customer experience. Regardless of your loan amount, you will always be treated with respect and courtesy by every member of our team. It is a sincere goal of ours to provide you with the fastest and best mortgage transaction that you have ever experienced. In many cases, we can fund a private money loan to a trust or estate in as little as 7 days. Please view some of our recent customer testimonials located here.

Experience

As you may be aware, in some situations California Proposition 58 grants residents the ability to transfer Real Estate along with a Proposition 13 protected property tax base from a parent to child. Sometimes in order to qualify for this exclusion against reassessment of property taxes, the beneficiary or heir may require a private money bridge loan or hard money loan. When it comes to Trust & Estate Bridge Loans and Third Party Private Money Loans to Trusts and Estates, experience with these types of loans is critical. The truth is that most California hard money lenders either never or rarely lend money to a trust or estate for Proposition 58 tax benefit purposes. If the financing is not conducted properly, the County Tax Assessors office is likely to reject the borrowers requests for a property tax reassessment exclusion. Even a small mistake could mean missing out on possibly thousands of dollars annually in property tax savings. At Commercial Loan Corporation, we specializes in providing short term financing and bridge loans to help our clients obtain Proposition 58 property tax reassessment exclusions. Every member of the Commercial Loan Corporation team has at least 15 years of mortgage experience and combined, our team has over 90 years of mortgage experience.

Commercial Loan Corporation is a Professional California Private Money Lender. Please call us at 877-464-1066 for assistance or click here to request additional information online.

What Clients Are Saying About Commercial Loan Corporation

Commercial Loan Corporation Reviews

In a world where to increase profits many lenders opt to use overly complicated phone systems to replace live customer support; we believe that customer service holds a greater value. At Commercial Loan Corporation we are determined to provide you with the best customer service experience possible.

Regardless of if you are an attorney representing a client on a trust loan or a borrower looking for third party financing to make an equal distribution of a parents estate; our professional staff is here to assist you. We are happy to take as much time as is needed for you to understand the loan process and will keep you informed along the way. In addition to setting the highest standards in customer service, we also fund the majority of our trust and estate loans with our own capital. This is important because it allows us to underwrite the loan to our own guidelines, quickly grant an approval you can rely on and also complete your financing more quickly; often times in as little as 7 days.

We don’t stop there. Unlike most of our competitors in the Trust & Estate loan marketplace, we do not charge any form of loan prepayment penalty or set any minimum days of interest collected requirements. That may not sound like a big deal, but depending on your loan amount and interest rate, it could potentially save you tens or thousands of dollars in pre-payment penalties or interest fees! We even go a step further and if you pay down your trust or estate loan, we will recalculate your payment based on the new lower outstanding mortgage balance.

Perhaps the best indication of customer service is communicated through the words of some of our past clients. Here are just a handful of testimonials from past Commercial Loan Corporation customers and business partners; more are located here:

“I am a California licensed Professional Fiduciary and needed a hard money loan for one of my clients. My client had been turned down for a Second TD by two conventional lenders before I received a cute ad mailer from Commercial Loan Corporation. From my first phone call to Commercial Loan Corporation (when the owner actually answered the phone!), to my last call with Autumn after the loan had been funded, I enjoyed every moment of this loan process. (How many lenders can you honestly say that about?) I look forward to our next loan together and would not hesitate to recommend Commercial Loan Corporation to anyone needing short term funds. You will be treated professionally and with kindness every step of the way.”
    – Clarice H. – Grover Beach, CA

“CLC was: Professional, Efficient, Thorough, Organized and Extremely Prompt in getting my Loan approved, signed, closed, recorded and Funded.  They were ready to Fund within 5 business days!  I highly recommend CLC.  It was a complete pleasure to work with Mike Riggs and Autumn Skerritt! I’m very glad my attorney recommended CLC. I’m sure you will be extremely pleased, as well.”
    – Sonia T. – Costa Mesa, CA

“Exceeded expectations. Best service I have experienced with ANY lender!  Went above and beyond at every opportunity. Took great care of a client that we referred to them. Response times to any communications from the client or from our office were prompt and complete. Loan processing times were FAST.”
    – Menke Law Firm, APC, – Long Beach, CA

If you are in need of a professional and reliable, California Trust and Estate loan provider allow us to assist you.  Please call us at 877-464-1066.

California Estate Loan And Trust Loan Provider

Estate Loans and Third Party Loans To Trusts - Call Commercial Loan Corporation at 877-464-1066

Estate Loans and Third Party Loans To Trusts – Call 877-464-1066 For Assistance

Provider Of California Estate Loans

Thanks to California Proposition 58, a parent is permitted to transfer their low property tax rate to a child on an inherited piece of real estate. Unfortunately, in some situations receiving an exclusion from property tax reassessment can be easier said than done. Specific steps must be taken to receive your exclusion from your local County Tax Assessors Office and if they are not done correctly, you may lose your ability to preserve your parents low property tax rate. Commercial Loan Corporation specializes in providing loans to estates and trusts. These specialty private money mortgages assist our clients in qualifying for the Prop 58 property tax exclusion from reassessment. In addition to providing third party private money trust and estate mortgages, we can also put you in contact with a qualified estate attorney, probate attorney, fiduciary or California property tax consultant to assist you in qualifying for your Proposition 58 benefits.If you need an estate or trust loan, or have questions, please call us at 877-464-1066 or complete our information request form located here.

Proposition 58 Exclusion From Property Tax Reassessment

In 1986 California enacted Proposition 58. Proposition 58 allows for an inheriting property owner to avoid a property tax reassessment when acquiring real estate from their parents. The inheriting owner’s property taxes are calculated on the established Proposition 13 factored value, instead of the current market value, saving them potentially thousands of dollars annually. This is especially important if one of the children inheriting the property wants to either keep the home as a residence or as an investment property. If the parent has owned the home for an extended period of time, there is a high probability that Prop 13 has kept their property tax rate much lower than it would be if the property was reassessed at current market value.

Under Proposition 58, retaining a parents low property tax rate can become complicated when there is not enough liquid assets in the trust or estate to create an equal distribution to all siblings. In this situation a third party loan placed against the inherited home may be the only option to make an equal distribution. The additional cash made available from our 3rd party loan allows each of the siblings to receive an equal share of the assets. If the third party loan is not handled properly, the County Assessors Office may reject your request for a Proposition 58 exclusion from property tax reassessment and the property taxes will be calculated on the homes current assessed value. If you, one of your siblings or a client of yours is in need of a third party loan to take advantage of California Proposition 58’s exclusion from property tax reassessment, call Us at 877-464-1066.  We specialize in providing private money loans to trusts and estates and can assist you.

Come See Us At The 23rd Annual PFAC Educational Conference

Come See Commercial Loan Corporation At The PFAC Educational Conference #PFAC #Estate #Trust #Loans

Come See Commercial Loan Corporation At The PFAC Educational Conference

Come and see Commercial Loan Corporation at the 2018 Annual PFAC Education Conference. Commercial Loan Corporation will be hosting a booth in the Exhibit Hall. This year the 23rd Annual PFAC Educational Conference will be celebrating the legacy of success of California licensed professional fiduciaries. PFAC is proud to serve this honored profession by providing some of the most comprehensive and current education in the industry, partnering with proven presenters and speakers imparting skills and knowledge that you can put to use in your practice. Commercial Loan Corporation is proud to support this event and if you are attending we will be happy to see you there. The PFAC Educational Conference will be held at the Riverside Convention Center this year on May 30th – June 2nd, 2018.

Commercial Loan Corporation PFAC Ad 2018 Educational Conference

Commercial Loan Corporation PFAC Ad 2018 Educational Conference

Mike Riggs will be on hand at the conference to answer any questions that you may have on Proposition 13, Proposition 58 and how to best take advantage of the savings benefits with our trust & estate mortgages. You may also visit our Homepage for additional information on our Trust & Estate loans. For additional information on how to find us at the 23rd Annual FPAC Conference or about our specialized loans to trusts and estates, please call us at 877-464-1066.

Why Choose Commercial Loan Corporation?

Commercial Loan Corporation, A California Proposition 58 Lender

Commercial Loan Corporation, A California Proposition 58 Lender

Why Commercial Loan Corporation

There are several things that separate Commercial Loan Corporation from other California private money lenders. Perhaps most important is that Commercial Loan Corporation specializes in loans to trusts with the specific goal of retaining the original prop 13 tax status. There are a few lenders that consider these transactions occasionally but these loans are a small percentage of what they do. It is critically important that this transaction is done correctly to ensure that the county doesn’t reassess the property. There are a lot of mistakes that can be made if it’s not done correctly. We work directly with both the customer and the attorney to assist in this process. We have adjusted our documents with the help of numerous attorneys to provide a seamless transition when the property is distributed from the trust to the individual taking the property in the distribution from the trust. We understand the process better than most, because it’s all we focus on. And we are the lender so we make all of the decisions ourselves. You are right at the source.

Another very important thing that separates us from anyone out there is our policy on early payment. You will find that other private money lenders want to make as much interest as possible off of the transaction. This is not a bad thing. Companies are in business to make a profit. However, our policy on prepayment penalties helps us stand apart from other lenders. Most lenders, in addition to their loan costs, require a pre-payment penalty of some sort. This can be a standard 6 month or 1 year early payoff penalty or in some cases can be a specific number of months of required interest. If a lender requires that you make 3 or 6 payments of interest on a loan prior to being paid off, it is the same thing as a prepayment penalty. A requirement for certain number on month’s interest guarantees a lender that the loan will be more profitable. If a borrower is required to make a specific number of interest payments, it adds to the cost of the loan. For example, if a borrower is required to make 90 days of payments on a loan, it is the equivalent of adding 2 to 3 percent of the loan amount in loan costs.

Commercial Loan Corporation has no prepayment penalties of any kind. None. This can be extremely beneficial to the customer financially. If the money to pay the loan back is readily available we have worked with customers that pay off our loan immediately eliminating virtually any interest costs on the loan. This means that the initial fees charged for the loan is the entire cost of the loan.

Here is an example…

Say the customer has a personal line of credit available to pay off our loan from their lending institution. We can work with them to determine the best timing to fund our loan depending on the availability of their funds. If we fund our loan on Monday, they can pay off our loan on Tuesday, effectively eliminating the accrual of interest. This can be a great tool to potentially save thousands of dollars in interest payments.

We also work with the attorney and the customer to decide when to file the re-conveyance showing that the loan has been paid off. Some of the attorneys we work with want to wait to file the reconveyence (proof the loan is paid off) until they are satisfied that the county has concluded the Exemption for Reassessment of property taxes. We can accommodate the preference of the attorney in the timing of filing the reconveyence.

Don’t let any of this confuse you, we are here to answer any questions you have on the subject and look forward to helping! We tend to do business the old-fashioned way. We do what we say we’re going to do and we focus on speed and customer service.

For assistance, contact us at 877-464-1066 or call our California Account Executive Mike Riggs at 714-442-8901 or mriggs@cloanc.com.

 

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.

CALIFORNIA PROPOSITION 58 INFORMATION

California Proposition 58 Trust Loans

California Proposition 58 Information

What is California Proposition 58 and how may it benefit you?

On November 6, 1986, California Proposition 58 became effective. Proposition 58, with certain limitations, permits the exclusion for reassessment of property taxes on real estate transfers between parents and children. California Proposition 58 is codified by section 63.1 of the California Revenue and Taxation Code. In the State of California, real estate or real property is reassessed at market value if it is sold or transferred. Property taxes can sometimes increase dramatically as a result of a property tax reassessment. Per Prop 58, if the sale or transfer is between a parent and their child, under limited circumstances, the property will not be reassessed, providing certain conditions are met and the proper application is filed in an appropriate amount of time. California 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, as opposed to the current market value.

It is important to be aware that there are some limitations to California Proposition 58. For instance, on non primary residences transfers are limited to the first $1 million of real property. The $1 million exclusion applies separately to each eligible transferor. These transfers may be the result of a sale, gift, or inheritance. A transfer via a trust also qualifies for this property tax reassessment exclusion. Additionally, for Proposition 58 there are limitations for who is eligible to receive these tax benefits. Here are the existing guidelines for Prop 58 relationship eligibility: A “child” for purposes of Proposition 58 includes any child born of the parent(s), any stepchild while the relationship of stepparent and stepchild exists, any son-in-law or daughter-in-law of the parent(s), and any adopted child who was adopted before the age of 18. Spouses of eligible children are also eligible until divorce or, if terminated by death, until the remarriage of the surviving spouse, stepparent, or parent-in-law. For California Proposition 193, an eligible “grandchild” is any child of parent(s) who qualify as child(ren) of the grandparents as of the date of transfer.

There are additional factors that are important to consider when it comes to California Proposition 58 eligibility. For instance, the acquiring beneficiary can’t lend money to the trust when funds are needed to make an even distribution of the trust. The reason why is that the Board of Equalization views this act as a child buying out another child as opposed to a parent to child transfer. The child would no longer be eligible for the exclusion of property tax reassessment because the exclusion for reassessment requires a transfer be from parent to child. Often times the only solution in this situation is for the trust to take out a mortgage on real estate located in the trust to supply the trust with the cash needed to make an even distribution. This is not as simple as it sounds. The acquiring beneficiary does not own the property because the real estate is held in the trust. Almost all conventional lenders are opposed to lending to trusts. They will typically ask the trustee to put the title in the name of the acquiring beneficiary before funding their loan. If this is done before the even distribution of the trust, the exclusion for reassessment will usually be denied. Commercial Loan Corporation can help in this situation. Commercial Loan Corporation is one of just a handful of California Lenders who are willing to provide loans to trusts; in fact, we specialize in it.

What separates Commercial Loan Corporation from other Private Money Trust Mortgage Lenders is that our Trust Loans are specifically designed with our clients needs in mind. Our trust and estate mortgages enable our clients to take advantage of the Proposition 58 property tax benefits while at the same time avoiding steep pre-payment fees and interest rate expenses charged by many of our competitors. Commercial Loan Corporation charges no pre-payment penalties or specified required months interest prior to loan payoff. Additionally, we permit our clients to pay down their mortgage and will recalculate their mortgage payment for them based on the outstanding mortgage balance. This benefit alone can save our clients potentially thousands of dollars in interest.

If you, a client or someone you know could benefit from a trust loan, please call us at 877-464-1066 or complete the trust mortgage inquiry form located here.