USC Gould Trust and Estate Conference 2023

USC Gould Trust and Estate 2023 Conference

The 2023 USC Gould Trust and Estate Conference

The 49th Annual Trust and Estate Conference will take place on Friday, November 17, 2023, at the Westin Bonaventure Hotel in Downtown Los Angeles. Commercial Loan Corporation will once again be sponsoring the event. Two of our Senior Account Executives, Tanis Kluever and Thad Farrell will be attending the event and available to answer any questions you may have on California Proposition 19 and our Trust and Estate loan programs.

For 49 years, USC Gould’s Trust and Estate Conference has been delivering practical and real-life solutions from speakers with a proven track record of addressing unexpected problems in estate planning, probate, and trust administration. The Conference typically attracts over 500 participants for unrivaled networking and learning opportunities from both the speakers and your professional colleagues. The Conference is tailored for trust, estate planning, probate and elder law professionals including attorneys, paralegals, trust officers, accountants, financial institution executives, private professional fiduciaries, wealth management professionals, fiduciary officers, underwriters and insurance advisors. what’s included?

Registration includes all sessions, continental breakfast, networking breaks, luncheon presentation, continuing education credit, and print and downloadable copies of the practical Conference Syllabus, including the popular Resource Guide, a Trust and Estate Professional Directory covering Los Angeles, Orange and San Diego counties.

If you have any questions regarding a loan to a trust or estate or about qualifying for a California Proposition 19 Parent to Child Property Tax Transfer, please call us at (877) 464-1066 and we can answer any questions you have.

California Proposition 19 – Avoiding Property Tax Reassessment on an Inherited Home

California Proposition 19 and Keeping a Parents Low Property Tax Base on an Inherited Home

Did you know that in the State of California you can keep a parent’s low Prop 13 protected property tax base on an inherited home? Thanks to California Proposition 19, it is true; providing that you meet all of the necessary requirements.

We specialize in assisting clients keep a parent’s low property tax base on an inherited home. You can call us at (877) 464-1066 for a free benefit analysis. We will help you determine if you qualify for Prop 19 and how much you might be able to save each month in property taxes by transferring your parent’s property tax base and avoiding property tax reassessment on an inherited home.

Each month we work with attorneys and California property tax consultants, helping their clients avoid property tax reassessment. Doing so saves the client on average over $6,520 a year in property taxes. We also provide attorneys with free California State Bar approved continuing legal education on Proposition 19 and Parent to Child Property Tax Transfers. If you are an attorney or professional fiduciary and are interested in taking our course and receiving your 1 hour of participatory CLE credit, please contact us at (877) 464-1066 to schedule a time that is convenient for you.

You can learn more about California Proposition 19 at Proposition19.org

Bridge Loans to Trusts

Bridge Loans to Trusts

Bridge Loans to Trusts

Bridge Loans to Irrevocable Trusts

A bridge loan is a sum of money lent by a lender to cover a short duration of time between two transactions. Bridge loans are typically used for the buying of one house and the selling of another or during the construction of a home. The bridge loans that we provide at Commercial Loan Corporation are done to help the beneficiary of a trust keep a parents low property tax base on an inherited home.

Can a trust get a bridge loan?

Yes, a trust can receive a bridge loan. That being said, very few lenders will make a loan to an irrevocable trust. Unlike other California lenders, we specialize in helping clients who require a loan on a property that is currently held in an irrevocable trust. We also provide bridge loans on properties that are currently in probate. Not only do we provide bridge loans, loans to irrevocable trusts and probate loans, but we can also provide the funds needed to prepare a home in a trust or estate for sale. We can also assist you in getting an immediate cash offer for a home if you prefer.

When you contact us, we can provide you with a free assessment of all of your options so that you can make the decision that works best for you. We are California’s top Trust and Estate Lender and have helped hundreds of clients avoid property tax reassessment on an inherited home with our bridge loans to trusts.

Trust Bridge Loans

Our trust bridge loans have been purpose designed to assist beneficiaries in taking advantage of the California Proposition 19 Parent to Child Property Tax Transfer. Prop 19 allows a parent to transfer their low property tax base to a child and avoid property tax reassessment on the inherited home. Commercial Loan Corp provides a bridge loan directly to the irrevocable trust or probate estate, with no personal guarantee requirement from the beneficiary inheriting the home. This bridge loan meets the California Board of Equalization equalized distribution requirement and avoids a sibling to sibling buyout, which can put your exclusion from property tax reassessment at risk. The bridge loan to a trust loan process is quick and easy. We are able to close a trust bridge loan in as little as 7-10 business days. Our trust bridge loans help clients avoid costly realtor fees and save on average over $6,500 in property taxes annually by avoiding reassessment. If you, a client or family member are inheriting a home and have questions about a bridge loan to a trust, please call us at (877) 464-1066 and we can answer all of your questions and provide you with a free quote on a trust bridge loan.

Commercial Loan Corporation – A Complete Trust & Estate Loan Solution

California Trust and Estate Lender

California Trust and Estate Lender

Trust Loans, Estate Loans, Probate Loans & Loans to Prepare A Home for Sale

Commercial Loan Corporation is a one stop shop for all of your Trust & Estate Loan needs. Unlike other lenders, we specialize in helping clients who need a loan for a home in an irrevocable trust or currently in probate. Most lenders refuse to lend on these properties, but that is what we specialize in. Not only do we provide trust loans and probate loans, we can also lend funds to prepare a home for sale. In addition to lending services, we can also help you get an immediate cash offer for a home you wish to sell. We can provide you with a free assessment of all of your options so that you can determine which makes the most sense for you.

Trust Loans

Our trust loans are specially designed to help beneficiaries and heirs take advantage of the California Proposition 19 parent to child property tax transfer and avoid property tax reassessment on an inherited home. We lend directly to irrevocable trusts and estates in probate, with no personal guarantee requirement from the beneficiary inheriting the home. This meets the California Board of Equalization equalized distribution requirement and avoids a sibling to sibling buyout, which can put your exclusion from property tax reassessment at risk. The loan process is quick too. We can fund a trust loan in as little as 7 business days. Our trust loans help clients avoid costly realtor fees and saving on average over $6,500 in property taxes each year by avoiding reassessment.

Probate Loans

Much like a trust loan, a probate loan is typically used to help a client avoid property tax reassessment on an inherited home. The key difference is that the home is in the probate process and opposed to locked in an irrevocable trust. We can help you simplify a complex situation and secure your low property tax base. We will answer all of your questions on the process and help you determine if a probate loan is right for you.

Trust & Estate Loans to prepare a home for sale

In some situations a trust or estate would like to sell the home for top value but does not have the funds needed to make repairs or prepare the home for sale. We make loans to trusts and estate so that they can be rehabilitated, repaired or remodeled; allowing you to fetch top dollar when it is sold. In some cases speed is of the essence and the client wants to get a quick cash offer for the home and avoid a potentially length home sale process. We have contacts throughout California who can assist you and and in some cases purchase your home in as little as 10 business days.

If you are inheriting a home and have questions about a trust loan, probate loan or getting a cash offer for a home; please call us at (877) 464-1066. We can answer all of your questions on the process and provide you with a free quote and benefit assessment.

Mistakes to Avoid When Transferring a Property Tax Base

Irrevocable Trust Loans

California Loans to Trusts

The Right Advice & The Right Trust Loan Lender 

Much to the relief of many Californians who are in the process of inheriting a home from a parent, in many case California Proposition 19 allows you keep a parents low property base on the inherited homes. However, sometimes new homeowners and beneficiaries trigger a property tax reassessment by accident, and end up facing a massive property tax reassessment. Thankfully that can all be avoided with the right advice and a loan to an irrevocable trust when one is needed. Working with Trust & Estate Attorneys and Property Tax Consultants, we have helped hundreds of clients take advantage of their Prop 19 & Prop 58 benefit with our loans to Irrevocable Trusts. In fact we have helped clients save over 21 million dollars in property taxes with our loans.

Due to rapidly increasing property values and California Proposition 13 (which helps keep property taxes low in California), we save our average client over $6,500 in property taxes each year by avoiding reassessment on an inherited home. Best of all, the process is easy and every beneficiary wins because you are able to avoid the fees associated with selling a home.

The California Parent-to-Child Exclusion

As far as parent to child transfers are concerned, when one beneficiary who is inheriting a home decides to buyout property shares inherited by co-beneficiaries (siblings) – to have complete ownership of the property, it’s easy to misstep and mistakenly trigger property tax reassessment. A parent to child property tax transfer in is line with the effort to  avoid property tax reassessment under Proposition 19’s parent-child exclusion. Therefore a loan to an irrevocable trust working in conjunction with Proposition 19 allows us to transfer property between siblings – buying out property from siblings. In many situations a loan to an irrevocable trust is needed because there is not sufficient cash assets in the trust to make an equal distribution to all child beneficiaries. That is where we come in.

Choosing the Right Trust Lender to Keep a Parent Low Property Tax  Base

Commercial Loan Corporation is one of just a handful of California lenders that will lend money directly to an irrevocable trust with no personal guarantee. We are also the only Trust & Estate Lender in California who works with hundreds of Trust & Estate Attorneys and provides them with California State Bar authorized Continuing Legal Education on the topic of Proposition 19 and lending to an irrevocable trust. If you are a client is in need of a loan to an irrevocable trust, please call us at 877-464-1066. We will answer all of your questions and provide you with a free trust loan benefit analysis.

Free Continuing Legal Education Course – California Proposition 19

California Proposition 19 Continuing Legal Education - Free for California Attorneys

California Proposition 19 Continuing Legal Education – Free for California Attorneys

Commercial Loan Corporation Now Offers Free Proposition 19 Continuing Legal Education Online for Licensed California Attorneys

Commercial Loan Corporation offers a 1 hour presentation on the use of Parent to Child Property Tax Transfers under Proposition 19, 58 and 193. The presentation covers the use of proper calculations when equalizing distributions and use of Proposition 19’s transfer of tax base provision. This California Prop 19 CLE presentation is approved by the California Bar for 1.0 MCLE credit. Our continuing legal education is offered completely free to Attorneys and Fiduciaries. Commercial Loan Corporation is a California Lender that specializes in lending to Trusts and Estates and has helped hundreds of clients retain a parents low property tax rate on an inherited home.

Commercial Loan Corporation is a licensed provider of continuing legal education for the state of California. This course covers California Proposition 19, Proposition 58 and third party loans to trusts and estates to facilitate an equal distribution. The course can be performed online and scheduled at a convenient time of your choice during the business hours of Mon-Fri 9am-4pm.

Please contact Commercial Loan Corporation at (877)464-1066 to signup for this free California Proposition 19 CLE today.

What is California Proposition 19?

What is California Proposition 19?

Information of California Proposition 19 and Property Tax Transfers.

California Proposition 19

So what is California Proposition 19? Proposition 19 also known as the Home Protection for Seniors, Severely Disabled, Families and Victims of Wildfire or Natural Disasters Act, or Prop 19 for short is an amendment to the California Constitution that impacts state property tax laws and regulations. On November 3, 2020, California voters approved Proposition 19. In simplified terms Prop 19 is a Constitutional Amendment that imposes new limits on property tax benefits for inherited family property. Under Proposition 19, a child or children may keep the lower property tax base of the parent(s) but only if the property is the principal residence of the parent(s) and the child or children make it their principal residence within one year of receiving ownership. Additionally, Prop 19 allows homeowners who are over 55 years of age, disabled, or victims of a wildfire or natural disaster, to transfer their lower assessed property value of their primary home to a newly purchased or newly constructed replacement principal residence up to three times, or once per disaster. Proposition allows the property tax base may be transferred to a property located anywhere in the state of California.

California Proposition 19 Effective Dates

Information on Proposition 19 obtained at the California BOE Website:

Section 10 of article II of the California Constitution provides that a measure approved by a majority of votes cast takes effect on the fifth day after the Secretary of State files the Statement of the Vote for the election at which the measure is voted on, but the measure may provide that it becomes operative after its effective date.1 The language of Proposition 19 for both the base year value transfer provisions and the parent-child and grandparent-grandchild exclusion provisions have specified operatives dates, as follows:
• The base year value transfer provisions become operative on April 1, 2021.
• The parent-child and grandparent-grandchild exclusion provisions become operative on February 16, 2021.
Base Year Value Transfer
Beginning on and after April 1, 2021, section 2.1(b) of article XIII A of the California
Constitution provides that an owner of a primary residence who is over 55 years of age, severely disabled,2 or a victim of a wildfire or natural disaster may transfer the base year value of their primary residence to a replacement primary residence located anywhere in California that is
1 On June 5, 2018, the voters of California approved Proposition 71, which changed the effective date of ballot measures from the day after the election to five days after the California Secretary of State certifies the results of the election. See LTA No. 2018/068. 2 Revenue and Taxation Code (RTC) section 74.3(b) defines a “severely and permanently disabled person” as “any person who has a physical disability or impairment, whether from birth or by reason of accident or disease, that results in a functional limitation as to employment or substantially limits one or more major life activities of that person, and that has been diagnosed as permanently affecting the person’s ability to function, including, but not limited to, any disability or impairment that affects sight, speech, hearing, or the use of any limbs.”

California Proposition 19 Parent to Child Exclusion Chart.

California Proposition 19 Charts to help you better understand how the proposition may impact you can be found here. The following Prop 19 chart illustrates how the proposition differs from the previous Prop 58 and Prop 193 California legislation.

The California Proposition 19 Parent to Child Exclusion Chart

The California Proposition 19 Parent to Child Exclusion Chart

 

The Proposition 19 Base Year Value Transfer Chart

The Proposition 19 Base Year Value Transfer Chart

 

Assistance with the California Proposition 19 Parent to Child Transfer

Commercial Loan Corporation works with clients, Estate Attorneys and California Property Tax Consultants to help you qualify for a California Proposition 19 Parent to Child Transfer. We provide loans to Irrevocable Trusts and Probate that do not have sufficient cash assets. Our trust loan or probate loan allows for an equalized distribution to be made to all involved child beneficiaries without having a personal guarantee from the acquiring beneficiary.

If you require additional information on California Proposition 19 or if you are curious if you are eligible for the California Proposition 19 Parent to Child Transfer Benefit, we can assist you. We have helped hundreds of clients receive their benefit and save them over $6,500 per year in property taxes on average. Call us at 877-464-1066 and we will answer all of your questions. We can also provide you with a free benefit analysis and let you know how much you may be able to save in property taxes on an inherited home.

Additional California Proposition 19 Resources:

The full legislative information on California Proposition 19 – ACA-11 can be found here.
The California Proposition 19 Parent to Child Transfer Benefit Calculator

What is California Proposition 19? – PDF Download

Orange County Bar – Proposition 19 Trust Loan Presentation

Trust and Estate - Proposition 19 Loans to Irrevocable Trusts

Trust and Estate – Proposition 19 Loans to Irrevocable Trusts

On March 7th, 2022, Tanis Alonso-Kluever will be providing a Continuing Legal Education presentation for the Orange County Bar Elder Law & Special Needs Section. Tanis is a Senior Account Executive at Commercial Loan Corporation and specializes in lending to Irrevocable Trusts and Estate so that her clients can qualify for California Proposition 19’s and Proposition 58’s parent to child transfer and avoid property tax reassessment. This presentation is approved by the California Bar for 1.0 MCLE credit.

In the presentation, Tanis will cover understanding the differences in law as they pertain to Parent to Child Transfers under Proposition 19, 58 and 193. Using proper calculations when equalizing distributions and use of Proposition 19’s “transfer of tax base” provision. We welcome any members of the Orange County Bar Association to sign up. Attached is the signup PDF.

Orange County Bar Association – Proposition 19 Loans to Irrevocable Trusts for Proposition 19

If you have questions on California Proposition 58 or Proposition 19, please call us at 877-464-1066.

Parent to Child Property Tax Transfer in California

Parent to Child Property Tax Transfers in California

Parent to Child Property Tax Transfers in California

Perhaps the greatest benefit of California Proposition 58 and Proposition 19 is the ability those propositions grant to a parent allowing them to transfer their low property tax base to a child. On average avoiding property tax reassessment saves a child inheriting a home over $6,500 a year. In some situations that property tax savings means the difference between a child being able to afford keeping an inherited home or having to sell it.

Depending on the date of death of the parent who is transferring real estate to a child, the child may be able to take advantage of the Proposition 58 benefit or be forced to use the new Proposition 19 property tax transfer benefit. California Proposition 19 went into effect on February 16, 2021. The California Board of Equalization has created a chart (located here) to help you understand the difference between the Prop 58 and the Prop 19 parent to child transfer benefits. The two primary differences boil down to the ability to transfer a home that will not be used as a primary residence and the amount of property value that you are able to exclude from reassessment. Proposition 19 only allows a child to avoid property tax reassessment on a home that will be used as their primary residence, where Proposition 58 does not have that restriction. Additionally, Proposition 19 allows you to exclude the current taxable value plus $1,000,000; where Proposition 58 has no value limitations for a principal residence.

Often times when a trust is involved, a parent will leave a family home to multiple child beneficiaries. When that is the case and one of the children wishes to keep the family home and take advantage of their Proposition 58 or Proposition 19 property tax transfer benefit to avoid property tax reassessment, the trust may need to borrow money against the home so that an equal distribution on trust assets can be made. In many cases the California Board of Equalization will require an equal distribution of the trust assets be made in order to qualify for an exclusion from property tax reassessment. If there are not sufficient cash assets held in the trust, the trust will need to borrow the funds to make the equal distribution. Commercial Loan Corporation is one of the few lenders in California that will make a loan to an irrevocable trust.

We specialize in assisting beneficiaries and trust administrators when a loan to an irrevocable trust is required. If you would like to learn more about how a loan to a trust can help you avoid property tax reassessment on an inherited home, please call us at 877-464-1066.

Property Taxes In California

How to Transfer a Parents Property Tax Base

How To Keep A Parents Low Property Tax Base On An Inherited Home

What is California  Proposition 13?

In the 1970s property tax hikes were completely out of control. Working class and middle class families were losing their homes because they could no longer afford to make their mortgage payments with the rapidly increasing property taxes factored in. California Proposition 13 changed all of that!

California Proposition 13, officially named the People’s Initiative to Limit Property Taxation, was amended the Constitution of California in 1978. The initiative was approved by California voters on June 6, 1978.  California Prop 13 states that the maximum amount of any ad valorem tax on real property shall not exceed one percent (1%) of the full cash value of such property. The one percent (1%) tax to be collected by the counties and apportioned according to law to the districts within the counties.

Additionally and perhaps most importantly, Proposition 13 decreased property taxes by assessing values at their 1976 value and restricted annual increases of assessed value to an inflation factor, not to exceed 2% per year. It also prohibits the reassessment of a new base year value except in cases of change in ownership or completion of new construction.

By making these changes to the California Constitution, Prop 13 stabilized property taxes for home owners. People were able to predict if home ownership was going to be affordable for them now and in the future. In situations of rapidly increasing property values, like we have experience in California over the last 50 years, people were no longer in jeopardy of losing their homes due to the inability to afford the increase in their property taxes.

What is California Proposition 58 – Parent to Child Property Tax Transfer?

As time passed a new issue made itself evident. When parents passed on the family home to children a change of ownership would occur and the child who inherited the home would have the property reassessed. In many situations, this property tax reassessment would make the home unaffordable and the child would have no option but to sell the family home.

On November 6, 1986,  California’s Proposition 58 granted Californians the ability to avoid property value reassessment on inherited real estate. With certain limitations, California Proposition 58 allowed for the exclusion for reassessment of property taxes on transfers between parents and children. 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.

What is California Proposition 19?

On November 3, 2020, California voters approved Proposition 19. Prop 19, also known as the Home Protection for Seniors, Severely Disabled, Families and Victims of Wildfire or Natural Disasters Act made sweeping changes to a property owner’s ability to transfer their Proposition 13 Assessed Value and also replaced California Prop 58. The measure allows homeowners to transfers their assessed value in some situation and added new transfer provisions for victims of disasters and individuals severely handicapped. Prop 19 changed Prop 58 and limited the parent to child property tax transfer and exclusion for property tax reassessment to $1,000,000 in assessed value and to owner occupied properties. In order to receive your Prop 19 parent to child transfer benefit, the California Board of Equalization and the County Assessors Office has requirements on how the transfer is made.

Commercial Loan Corporation works with your Estate Attorney or California Property Tax Profession to help you qualify for your Prop 19 Parent to Child Transfer Benefit. We provide loans to Irrevocable Trusts and Probate; allowing for an equalized distribution to be made to all involved child beneficiaries without having a personal guarantee from the acquiring beneficiary.

Are you curious if you are eligible for the California Prop 19 Parent to Child Transfer Benefit or would like to learn more about it? We have helped hundreds of clients receive their benefit and on average save them over $6,500 per year in property taxes. Call us at 877-464-1066; we will answer all of your questions and let you know how much you may be able to save in property taxes on an inherited home.