Tag Archives: Prop 13

Information on California Proposition 58 & Avoiding Property Reassessment

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California Proposition 58 Avoiding Property Tax Reassessment

California Proposition 58 Avoiding Property Tax Reassessment – Call 877-464-1066 For Assistance

California Proposition 58 Property Transfer & Avoiding Reassessment

California Proposition 58 provides California property owners with the ability to transfer real estate and a low property tax base between a parent and child. There are requirements to qualify for the benefits of Prop 58 and limitations to the benefits granted. Thanks to the assistance of Michael Wyatt who worked in the Orange County Tax Assessors office for nearly 25 years, we have compiled a list of some of the most common mistakes made when filing for an exclusion from property value reassessment and misconceptions about how California’s Proposition 58’s Parent to Child Transfer works. The following information is not legal advice. Every situation is different and we highly recommend that you contact an attorney or property tax consultant before taking any action. If you require assistance, please call us at 877-484-1066 and we can place you in contact with a qualified party to help you.

Commercial Loan Corporation is one of only a few California lenders in existence that provides loans and mortgages to trusts and estates. These trust loans allow for a Proposition 58 parent to child transfer to be granted by providing the cash needed for the trust to make an equal distribution to all beneficiaries.  If you would like more information on our trust and estate loan programs, please call us at 877-464-1066 and we can answer any questions you may have and also provide you with a free Trust Loan Benefit Proposal. The proposal will calculate how much you may be able to save by taking advantage of the California Proposition 58 Parent to Child Exclusion for Property Tax Reassessment.

Proposition 58 Parent to Child Transfer Most Common Mistakes 

1. Filing a claim for an exclusion from property tax reassessment too late

Filing for a Proposition 58 exclusion from property reassessment is time sensitive and may be an urgent matter. You have three years; or six months from a Supplemental Notice of Assessment or Escape Assessment. If you have exceeded this time frame you may still be able to petition for your benefits.

2. Not keeping track of each “eligible transferor’s” $1 million limit

Exceeding the $1 million limit can trigger a tax reassessment on a property. The million dollar limit is associated with the transferor and not with the property.

3. A parent owns a home. He or She creates an LLC in which the parent and his/her two children equally own 33.33% of the LLC. He or She then transfers the real property to the LLC.

The California Board of Equalization has very specific requirements for how the transfer of real estate must occur and the order it must occur in if a parent to child exclusion is to be granted. In this situation the parent must first add the children on to title and then apply for the parent to child exclusion prior to placing the home into the LLC. Before proceeding with a property transfer it is recommended that you contact a Property Tax Consultant such as Michael Wyatt if you have any questions or concerns regarding your Proposition 58 Parent to Child transfer eligibility and to make sure that it is not jeopardized.

4. Filing a claim where the transferred property will be assessed at its current market value where its market value had fallen below the transferor’s original Proposition 13 factored base year value.

It is very rare in California, but in some extreme situations of declining property value, it may not be of benefit to file for an exclusion from property reassessment. Call us at 877-464-1066 and we can help you determine if filing for your Property 58 exclusion or taking out a trust loan is beneficial for you and how much you may be eligible to save in property taxes.

5. A person over 55 sells his/her long-time original residence to his child. He/she first applies for and is granted the Parent-Child Exclusion. He/she then buys a replacement residence and applies to transfer the base year value under Proposition 60 to his or her replacement property.

After transferring an interest in the property to the child, the parent is no longer eligible to qualify for the California Proposition 60 benefit. California Proposition 60 requires that the original residence must be “sold” to qualify. By previously qualifying for the Prop. 58, the property is viewed as a transfer and not as a sale of the original residence.

6. A person owns several low-value small condominiums. He or she also owns several high-value apartment complexes. He or she transfers these condominiums to a child and applies for and is granted the Parent-Child Exclusion, thereby reducing the $1 million limit for the apartment complexes.

California Proposition 58 limits how much real estate can be transferred from a parent to child while still avoiding reassessment. In a complicated situation where several pieces of real estate are involved with multiple child beneficiaries; it may make sense to consult a property tax consultant. Doing so may help you maximize the benefit received from a parent to child transfer while adhering to the Proposition 58 transfer limits.

7. Two parents own real estate through the medium of their trust. The father dies in 1995. The mother dies in November 2017. The successor trustee files the Parent-Child Exclusion claim, and only reports the mother’s $1 million. The trustee forgets to also include and report the father’s $1 million, to get a total of $2 million.

California Proposition 58 permits each parent with property ownership to transfer $1 million in property value, allowing their child beneficiary to avoid property tax reassessment.

8. A trust agreement specifies that after a mother passes away, her trust shares are to be distributed equally to her three children, A, B, and C. The children decide that A is to get the real property, and B & C wish to get cash, but the trust does not have equal portions of real estate and cash for each child. The children contact a conventional institutional lender. The loan officer says they don’t lend to a trust. The loan officer advises the family to first take the real property out of the trust. The lender will then loan money to A so that B & C can receive cash.

Once the property is taken out of the trust, the distribution has been made with out an equal distribution occurring and child A will only be eligible for a 33% exclusion. In order to get the full exclusion, a 3rd party loan must be made directly to the trust with no personal guarantee from a beneficiary. Once the trust has received the funds from the loan, an equal distribution of equity in the real estate to child A and cash to child B & C can be made allowing for a 100% exclusion. Commercial Loan Corporation is one of just a few California lenders that will lend directly to a trust with no personal guarantee from a beneficiary, allowing a child inheriting a property to qualify fro a Proposition 58 exclusion from reassessment and keeping a parents low Proposition 13 property tax base.

9. Sending an incomplete request package to the Assessor, delaying the granting of Parent-Child benefit.

Depending on the complexity of the trust or estate, the County may require a variety of supporting documentation in order to grant a Proposition 58 parent to child transfer property tax exclusion for reassessment. If the submitted package is incomplete or not filed correctly, the request will be rejected. We advise that you contact a California Property Tax Consultant such as Michael Wyatt or an Attorney if you are unsure if you are filing the request properly. Call us at 877-464-1066 and we can put you in contact with a qualified attorney or property tax consultant to assist you.

10. Failing to included subsequent amendments and restatements along with a copy of the trust when submitting your request for a California Proposition 58 parent to child transfer exclusion.

When submitting trust documentation to the County, it is important to include the entire set of trust documents. Not including any existing amendments or restatements may result in a rejection of the request.

11. Not including a copy of death certificate for one of children/heirs listed in the trust agreement who has passed away prior to distribution.

When submitting documentation to the County for an exclusion from reassessment, it is important to include supporting documents as well. The County will require evidence to support the claims made in the request form. Some of these documents may include death certificates, evidence of a third party loan and trust documentation.

If you have any questions or require assistance, please call us at 877-464-1066 and we will do our best to assist you!

Additional information on California Proposition 58 can be viewed here:
California Proposition 58 Information

 

Trust & Estate Loan Benefit Calculator

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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.

California Residential Property Tax Consultant

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California Residential Property Tax Consultant

California Residential Property Tax Consultant

At Commercial Loan Corporation we specialize in assisting clients with the financing they need to keep a parents low property tax rate on an inherited property. Transferring a Parents of Grandparents property tax rate can be a extremely beneficial; in fact, on average we save our clients over $6,000 per year in property taxes. Taking advantage of the California Proposition 58 property tax benefits can be very complicated and we always advice that you use the services of a qualified Attorney or Resident Property Tax Specialist. With so much potential property tax savings on the line, you want to make sure that all of the rules are followed and that all of the documents are processed correctly. Failing to do so may disqualify you from an Exclusion From Property Tax Reassessment.

Michael Wyatt is a residential property tax specialist and specializes in helping clients preserve a parents low Proposition 13 protected property tax rate when a home is transferred or inherited. Often times he works with clients where the inherited real estate is contained in a trust or is part of an estate. It can be a very complex matter. If the property is not transferred appropriately or the financing is not done in accordance with California law, you may become ineligible to retain a parents property tax base rate and the home may be reassessed at current market value. We have worked with Michael Wyatt’s Property Tax Consulting Firm on several occasions and highly recommend him.

Michael Wyatt Property Tax Consulting works with the clients of attorneys, CPAs, financial planners, and real estate professionals to minimize real property tax assessments before or after transactions involving the transfer or purchase of real estate. One of the reasons why Michael Wyatt’s services are so valuable when it comes to keeping a parents low property tax rate is that he formerly worked for the Orange County Tax Assessor’s Office for almost 25 years. So he has the first hand experience to make sure you obtain the tax savings that you deserve. Prior to becoming a California Residential Property Tax Consultant, Michael worked as a Legal Analyst at the County Tax Assessors Office. During that time, Michael observed many real estate transactions that had undesired results due to property owners either never consulting with counsel, or advisers were not familiar with property tax law and its consequences. Michael Wyatt became a Property Tax Consultant in order to help advisers and their clients avoid those unintended results, and plan and structure their real property transactions to achieve their goals.

 If you are in need of Trust or Estate financing or are interested in preserving a parents low property taxes on an inherited home, please call us at 877-464-1066 so that we may assist you. We can help you put together a plan of action and review your potential property tax savings with you.

Trust and Estate Terminology

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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

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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

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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

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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.

Commercial Loan Corporation Will Make You Look Like A Hero!

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Commercial Loan Corporation Will Make You Look Like A Hero

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!

They can also apply for a Trust or Estate loan here.

Let us make you look like a hero!

California Estate Loan And Trust Loan Provider

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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.

Estate Loans, Probate Loans, Trust Loans and Inheritance Loans

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Estate Loans, Probate Loans, Trust loan and Inheritance Loans

Estate Loans, Probate Loans, Trust loan and Inheritance Loans

Estate Loans, Probate Loans, Trust Loans and Inheritance Loans

If your inheritance includes real estate and you want to preserve your parents or grandparents low property tax rate; there are finance options available to assist you. These loans programs often go by different names but are most commonly referred to as inheritance loans, estate loans, probate loans, or trust loans. In some cases they will also be referred to as hard money loans, private money loans or 3rd party loans for trusts.

Estate, probate, inheritance and trust loans are typically more difficult to come by than conventional real estate mortgages. Often times in order to receive financing on real estate held by a trust, in probate or in an estate, you need to utilize a private money lender. These types of loans are typically intended to be used as short term financing options to provide liquidity to an estate or trust when one is trying to qualify for exclusion for reassessment of property taxes. Once the real estate has been transferred to the beneficiary or heir and the exclusion for property tax reassessment has been secured; that is when the loan is refinanced into a conventional mortgage.

It does not always make sense to utilize a private money, hard money, trust loan, estate loan or probate loan; but there are situations when it does. The most common reason to do so is when dividing the assets of a trust or estate and there is not sufficient cash liquidity to achieve an equal distribution. For instance, one heir or beneficiary may wish to retain ownership of a property. If that is the case and there is not sufficient assets remaining for an equal distribution to the other parties involved; taking out a mortgage on the property may be the best option.

Providers of inheritance loans, estate loans, probate loans, and trust loans

Inheritance loans, estate loans, probate loans, and trust loans are specialized types of real estate mortgages. It can be difficult to find lenders willing to provide this type of financing. Commercial Loan Corporation specializes in this type of lending. Best of all, unlike many other private money lenders, Commercial Loan Corporation does not charge a pre-pay penalty or have a minimum interest requirement which can be costly. If you or your client is looking to obtain a trust loan, probate loan or estate loan, please call us at 877-464-1066 so that we may assist you. To view testimonials from some of our past clients, please view them here.

For additional information on estate loans, probate loans, and trust loans please complete the trust and estate loan inquiry form located here