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 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.

Residential Property Tax Specialists

California Residential Property Tax Specialist, Proposition 13 and Proposition 58

California Residential Property Tax Specialists

The Importance Of Working With A Residential Property Tax Specialist

Working with the right business professionals can make all the difference. When it comes time to secure a Proposition 58 Exclusion From Property Tax Reassessment, through Prop 58, that could not be more true. The process of obtaining your exclusion from property tax reassessment can be littered with pitfalls. Even just one small mistake can be the difference between obtaining an exclusion or not. Retaining a Parent’s or Grandparent’s low Proposition 13 property tax rate can save you potentially thousands of dollars each year. That is why it is important to have a good Private Money Lender, Attorney and or California Property Tax Specialist on your side to help guide you.

When providing clients with a third party loan to a trust, we always recommend that they work with either a Trust & Estate Attorney, Qualified Trust Administrator and or a Property Tax Specialist. Attorneys and Residential Property Tax Specialists provide different services. Some California Residential Property Tax Consultants specialize in assisting clients in obtaining a Proposition 58 exclusion from property tax reassessment. Their expertise in these matters can be invaluable. The best of them even have experience working for the County as a Property Tax Assessor. This gives them a great deal of insight into what the assessors office will need in order to grant your exclusion. It can be especially helpful in complex situations where time is of the essence. In California, you only have three years to file for the exclusion from property tax reassessment. A long process can also delay the distribution of a trust in some cases.

The complexities of obtaining an exclusion from property tax reassessment should not be understated. Unless you deal with California’s Proposition 58 Exclusions From Property Tax Reassessments on a regular basis, it can be difficult to avoid mishaps.  Here are just a few examples of issues that a qualified California Property Tax Consultant can assist you with.

Common Proposition 58 Exclusion From Property Tax Reassessment Mistakes:

Not conducting the 3rd party financing properly and causing a property tax reassessment to occur.

Not keeping track of each eligible transferor’s $1 million limit; thereby exceeding the $1 million limit and triggering a reassessment for the overage.

Avoiding situations where an acquiring beneficiary lends money to the trust when funds are needed to make an even distribution. The California Board of Equalization views this as a child buying out another child as opposed to a parent to child transfer. The exclusion for reassessment requires a transfer from parent to child.

These are just a few examples of circumstances where a California Property Tax Specialist can assist you. If you are in need of a third party loan for a trust, a qualified Trust & Estate Attorney or a Property Tax Consultant referral, please call us at 877-464-1066 so that we may assist you.

If you are a California Trust & Estate Attorney, Probate Attorney, Fiduciary, Estate Planner, CPA, Wealth Manager or Property Tax Specialist and would like to be added to our list of Trust & Estate Professionals, please use the following link to apply to become a Commercial Loan Corporation recommend Trust & Estate Professional. Credentials will be reviewed and verified.

Trust & Estate Professionals Link

 

Trust & Estate Professionals

 

Trust & Estate Loan Benefit Calculator

Trust and Estate Loan Benefit Calculator

Trust and Estate Loan Benefit Calculator

Trust & Estate Loan Calculator

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

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

Trust Loan Calculators

Trust Loan Calculators

Try Out The Trust & Estate Loan Benefit Calculator

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