A trust equalization loan is a loan to a trust or irrevocable trust to facilitate an equal distribution of assets when disproportionate assets such as a home are involved. Trust equalization loans can be a requirement when one of the child beneficiaries is attempting to do a parent to child transfer in order to keep a parents low property tax base on an inherited home and the trust contains insufficient cash assets to make an equal distribution.
We provide more loans to irrevocable trusts than any other lender in California. We specialize in assisting beneficiaries who inherit a home, transfer and keep a parents property tax base. We have provided over 550 trust equalization loans and on average save our clients more than $6,500 a year in property taxes.
Are you in the process of inheriting a home from a parent? If so, call us at (877) 464-1066 and we can provide you with a free trust equalization loan benefit analysis. I will let you know exactly how much you can expect to save each year in property taxes and one of our helpful trust loan account executives will answer all of your questions on how the process works.
In the State of California, real estate is typically reassessed at market value when it is sold or transferred. As a result, property taxes may increase dramatically due to the new higher assessment value. Prop 58 or Proposition 58 is a California Proposition that with limitations, grants the ability to avoid property reassessment on real estate inherited from a parent in California. With the passage of Proposition 58 in 1986, if the sale or transfer of real estate is between a parent and their child, under some circumstances, the property will not be reassessed if all Board of Equalization conditions are met and the application for exclusion is filed in a appropriate amount of time.
Proposition 58 allows the child who is inheriting the home to avoid property tax reassessment when acquiring property from their parents. The child’s taxes are instead calculated on the parents established Proposition 13 factored base year value, instead of the current market value when the property is acquired.
In some cases in order to qualify for California Proposition 58, when the home is being inherited via a trust or an estate and multiple child beneficiaries are involved, an equal distribution of assets must be made. That is where Commercial Loan Corporation comes in. Commercial Loan Corporation provides third party mortgages to trusts and estates with no personal guarantee required from the acquiring beneficiary or heir. Our trust loan or probate loan provides cash to the beneficiaries who are not inheriting the home and allows the child who is inheriting the home to keep the property and meet one of the key Proposition 58 qualification requirements. On average we help our clients save over six thousand dollars a year in property taxes in addition to eliminating the need to sell the home. This speeds up the distribution process and saves on costly realtor fees.
If you or a client needs a distribution loan to take advantage of California Proposition 58, please call 877-464-1066. We can provide you with a free cost benefit analysis and let you know how much you may be able to save by taking advantage of your Prop 58 property tax benefits.
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