Keep a parent’s property tax base on an inherited home

Loans to Trusts and Estates

We are California’s #1 Trust and Estate Lender. We have helped over 500 clients keep a parent’s low property tax base on an inherited home. Our average client saves over $6,550 a year in property taxes by avoiding reassessment. We provide loans to irrevocable trusts and probate estates. A trust and estate loan allows for an equal distribution to be made so that you can qualify for a California Proposition 19 Parent to Child Transfer and avoid property tax reassessment on an inherited home. This enables one child to keep the home with the parent’s low property tax base while the other child beneficiarie(s) receive an equal share of cash.

Call us today at (877)464-1066. We can provide you with a free cost benefit analysis which will let you know how much you can save by avoiding property tax reassessment. We can answer all of your questions and work with your attorney to help you qualify for a Proposition 19 parent to child transfer and exclusion from property tax reassessment. We can provide financing in as little as 10 business days and help you and your family save tens of thousands of dollars by avoiding costly realtor fees. Our trust loans do not carry a prepayment penalty, so you can pay down or pay off your trust loan as quickly as you like.

Trust Loans and the Proposition 19 Exclussion from Property Tax Reassessment

Trust Loans and the Parent to Child Exclusion for Reassessment

Trust Loans and the Parent to Child Exclusion for Reassessment

When California Proposition 19 went into effect on April 1st, 2021, it replaced Proposition 58. California Proposition 58 previously controlled how a person inheriting a home from a parent could avoid property tax reassessment. Under the newly passed Proposition 19, a few of the rules for obtaining an exclusion from reassessment have changed.

Under Proposition 58, a child inheriting a home from a parent could apply for an exclusion from property tax reassessment with no value limitation, providing it was a primary residence. With Prop 58 you could also keep an investment property with a 1 million dollar exclusion per parent. Under Proposition 19, there is a limit of the current taxable value plus $1,000,000 on a primary home. Additionally, Proposition 19 eliminated the ability to avoid reassessment on an inherited home that will not be used as your primary residence.

There are additional requirements when it comes to receiving an exclusion from reassessment on an inherited home. One key point for the Assessor’s Office is to show that everyone receives their equal share according to what the trust states. If an equal distribution is required, a loan cannot be made to the trust by any of the beneficiaries who intend on keeping the real property. Doing so would be considered a sibling to sibling buyout resulting in a transfer between beneficiaries rather than a transfer from parent to child. For example, if the only asset in the trust was a home worth $900,000 and one of the three child beneficiaries wanted to keep that home, a loan would need to be made to the trust for $600,000. In this situation the two beneficiaries who did not want the home would each receive their $300,000 cash and the other child receives the home with $300,000 equity left in it after the trust loan was made.

When there are insufficient cash assets for an equal distribution to be made from an irrevocable trust, a person will often require the assistance of a trust and estate lender. As documented by the California Board of Equalization, the acquiring beneficiary may not utilize their own funds or make a personal guarantee on the loan. Doing so would create a sibling to sibling buyout, disqualifying them for the full parent to child transfer exclusion. The loan will need to be made directly to the trust, without first removing the property from the trust or requiring a personal guarantee from the acquiring beneficiary. A qualified trust and estate lender will make a loan directly to the trust, providing enough cash for the equalized distribution to be made. The trust lender often works directly with an attorney or property tax consultant. A trust loan is typically a short term loan with no pre-payment penalty. Once the property has been transferred from the trust to beneficiary, the loan can be paid off or refinanced into a conventional mortgage.

Additional information on this is available on the California Board of Equalization website located here.

If you, a family member or client is in need of a loan to a trust or irrevocable trust, you may contact us at (877) 464-1066. One of our Trust Loan Account Managers can answer any questions you may have on the trust loan process and put you in contact with a Qualified Trust & Estate Attorney or California Property Tax Consultant in your area if you are in need of assistance. We will also provide you with a no cost trust loan benefit analysis that will estimate how much you can expect to save by using a trust loan to avoid property tax reassessment on an inherited home.

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.

2022 USC Gould Trust & Estate Conference

Join Commercial Loan Corporation at the USC Gould Trust and Estate Conference

Join Commercial Loan Corporation and have your Proposition 19 Trust Loan questions answered at the USC Gould Trust and Estate Conference on 11/9/2022.

Come and meet Tanis Alonso-Kluever and Thaddeus Farrell at the USC Gould Trust and Estate Conference on November 9th, 2022. This years trust & estate conference will be held at the Westin Bonaventure Hotel. Commercial Loan Corporation is sponsoring the event and will be on hand to answer all of your questions on California Proposition 19 Parent to Child Transfers and our specialized Trust Loans to assist clients in qualifying for a full exclusion from property tax reassessment.

This years special keynote speakers include Dr. Bonnie Olsen and retired Judge Paul Suzuki. The speakers will discuss the development of the Judicial Guardianship Evaluation Worksheet, a tool for probate judges to evaluate relevant factors in assessing the propriety and scope of conservatorships for older adults. They will complete the 45-minute presentation discussing how the Worksheet may impact consideration of evidence in probate matters. Here are some details about the upcoming USC Gould Trust & Estate Conference:

When?

The 48th Annual Trust and Estate Conference will take place on Wednesday, November 9, 2022, at the Westin Bonaventure Hotel and Suites in downtown Los Angeles.

Why attend?

For 48 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 of your peers for unrivaled networking and learning opportunities from both the speakers and your professional colleagues.

Who should attend?

The Conference is specially 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.
Free WiFi will also be available for attendees at the Conference!

If you have questions on California Proposition 19 prior to the conference or are currently in need of a trust loan, please call us at (877) 464-1066 so that we may assist you. If you would like to signup for or find additional information on the 2022 USC Gould Trust and Estate Conference, please visit here. Or view the PDF version of the brochure here: USC Gould Trust & Estate Brochure

Trust Loans

Trust Loans

Trust Loans in California

What are Trust Loans?

Trust Loans or Loans to Trusts are loans made directly to a trust as opposed to an individual. With a conventional mortgage, a borrower applies for a loan and signs the loan documents personally guaranteeing the loan. With a trust loan it works a little different. Instead of a borrower guaranteeing the loan, the Successor Trustee will sign loan documents on behalf of the trust and the lender lends to the trust as opposed to a person. With a trust, usually a home is used as the collateral for the trust mortgage or trust loan. Often times there is no credit check, income verification or personal guarantee involved with a trust loan.

What is the purpose of a Trust Loan?

Most of the trust loans that we provide are to prepare a trust for distribution so that one of the trust beneficiaries can avoid property tax reassessment on an inherited home. California is one of the few states that provides a property tax security measure which prevents property taxes from increasing too rapidly. In California, Proposition 13 is what achieves this. California Proposition 13 caps the maximum increase of the assessed value of a home at 2% annually. This means that over a 10 year period, if your home doubled in value from $400,000 to $800,0000; you would only be paying property taxes on an assessed value of approximately $487,500 as opposed to the current market value of $800,000. In California, the typically property tax rate is 1% of the assessed value. So in the example above, it would mean an annual property tax savings of $3,125.

California Proposition 13 has been in effect since 1978. As you can imagine, since 1978 property values have increase significantly and Proposition 13 has kept the assessed values of many homes extremely low. In addition to preventing property taxes from increasing too rapidly, California has other laws to protect residents. Proposition 19, allows a parent to transfer a home to a child and avoid reassessment on that home if it is a primary residence. This is where a trust loan becomes very important. California Proposition 19 has specific requirements that must be met if a person inherits a home from a parent and wishes to avoid property tax reassessment on that home. One of those requirements pertains to trusts and estates. The California Board of Equalization requires that an equal distribution of assets be made to all child beneficiaries unless specific language exists in the trust. Information on this can be viewed here on the California Board of Equalization website When a trust is involved, a trust loan is likely the only way to accomplish an equal distribution.

Often times when a trust contains real estate, the home is by far the most valuable asset in the trust. When there are multiple beneficiaries in the trust, that often time means an equal distribution can not be made without cash being added to the trust. The trust loan resolves this issue by injecting cash into the trust while at the same time placing a lien or debt against the real estate. This allows for one child to inherit the home while other children receive an equal amount of cash, creating an equal distribution. Since the loan is made to the trust as opposed to the beneficiary, the child inheriting the home can qualify for the Proposition 19 exclusion from property tax reassessment. On average our clients save $6,500 a year in property taxes by avoiding property reassessment.

If you are inheriting a home and are interested in keeping a parents low property tax base, we may be able to help. We have assisted over 450 clients in avoiding property tax reassessment. We work with Trust & Estate Attorneys and Property Tax Consultants across California. Call us at (877)464-1066 and we can provide you with a FREE Trust Loan Benefit Analysis that will let you know if you may be eligible to avoid property tax reassessment and how much in annual property taxes a trust loan may help you save.

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.

Lending for Probate Estates & Irrevocable Trusts in California

Loans to Probate Estates and Irrevocable Trusts

Loans to Probate Estates and Irrevocable Trusts

Finding financing for Probate Estates and Irrevocable Trusts in California can be complicated. Most lenders are unwilling to lend on a property until the estate has been settled. The same problems exist for real estate held in an Irrevocable trust; conventional lenders will require the home be removed from the trust in order to provide financing and doing so is likely to jeopardize your ability to take advantage of the Proposition 19 parent to child transfer exclusion. Our private money loans help solve these complex issues. We lend to probate estates and directly to irrevocable trusts, providing the cash needed for trust administrators and beneficiaries to keep a family home and transfer a parents low property tax base.

We are California’s top Trust & Estate lender and have saved Californian’s over $7,800,000 in property taxes by avoiding property reassessment. We specialize in providing clients with the financing needed to qualify for California Proposition 19’s parent to child property tax transfer. Our average client saves over $6,800 each year in property taxes and if you are inheriting a home from a parent, we may be able to assist you as well. We offer competitive rates, have no personal guarantee requirements, offer affordable interest only payments with absolutely no no prepay penalties or minimum interest requirements.  We are here to help!

Call us at (877) 464-1066 and we can assist you or your client with a loan to a probate estate or irrevocable trust. We will help you determine your property tax savings, provide you with a free cost benefit analysis and answer any questions you may have on the process.

 

Irrevocable Trust Loans

Lending to an Irrevocable Trust

Lending to an Irrevocable Trust

Commercial Loan Corporation is one of only a few California lenders that will lend directly to an irrevocable trust. So what is an irrevocable trust?

An irrevocable trust is a type of trust where its terms cannot be modified, amended or terminated under most conditions. Often times, an irrevocable trust will begin as a living trust and once the grantor passes, will turn into an irrevocable trust. An irrevocable trust designates a trustee and beneficiary(s). The trustee is the person who manages the trust and may also be one of the beneficiaries. An irrevocable trust is commonly used to pass assets to heirs while avoiding probate. When you transfer your assets into an irrevocable trust, you relinquish control of those assets. The trust becomes the owner of the assets at that point.

The reason why most lenders will not lend directly to an irrevocable trust is because the trust is the owner of the assets, as opposed to an individual. This become important when a child is inheriting a home from a parent and would like to use Prop 58, or Prop 19 to keep a parents low property tax base. The California Board of Equalization requires and equal distribution of assets be made when multiple beneficiaries are involved unless specific conditions are met. If there are not sufficient cash assets in the trust to make an equal distribution, then a loan against real estate in the trust will be needed to qualify for the parent to child transfer to avoid property tax reassessment.

That is where Commercial Loan Corporation comes into play. We specialize in lending to trusts and estates; specifically irrevocable trusts.  Our trust loans, allow one child to keep an inherited home with the parents low Prop 13 tax base in tact, while the other child beneficiaries receive an equal portion of cash. Everybody wins! By avoiding expensive realtor fees, each beneficiary on average receives and additional $15,000 in inheritance and the child keeping the family home saves on average $6,200 per year in property taxes.

If you, a family member or a client may be able to benefit from a trust loan, we are here to assist you and answer any questions you might have.  Please call us at 877-464-1066.

Join Us at the 2020 USC Gould Trust & Estate Conference

USC Gould Trust and Estate Conference

USC Gould Trust and Estate Conference

Please join us this November 13th for the Virtual 46th Annual USC Gould Trust and Estate Conference. We are sponsoring the event again this year and will be available to answer any questions you have on Lending to an Irrevocable Trust or Probate Estate. Our loans assist clients in qualifying for the California Prop 58 Parent to Child Exclusion from Property Tax Reassessment on an inherited home.

Tanis Alonso, one of our Trust & Estate Loan Senior Account Executives will be available for Zoom meetings during the Conference or available by phone at (877) 464-1066 to assist you and provide you with more information on our specialized lending programs. Commercial Loan Corporations is one of the only lenders in California who will lend to an Irrevocable Trusts, allowing our clients to meet the California Board of Equalization requirements to qualify for their Exclusion from Reassessment.

If you are interested in attending this years USC Gould Trust and Estate Conference, please visit their website here for more details: Trust & Estate Conference – Los Angeles

This years USC Gould Trust & Estate Conference Features Information on the following

Keynote Presentation: Bending the Arc of History with Terrence Franklin
Practical Topics: Annual Updates, Trustee and Beneficiary Harmony, Anti-SLAPP, Divorce, Stretching Retirement Savings, and Sub-Trust Allocations
CE Credit: MCLE, CPE, CFP, PFB, and CTFA (Pending)

8:30 AM – 8:35 AM (PST)
Welcome and Introductions
8:35 AM – 10:05 AM (PST)
Annual Update: Recent Developments in Probate and Trust and their Practical Applications
10:05 AM – 10:20 AM (PST)
Break Sponsored by Professional Fiduciary Association of California
10:20 AM – 11:20 AM (PST)
Love in the Time of COVID-19: Trustee and Beneficiary Harmony in Years Like 2020
11:30 AM – 12:30 PM (PST)
No-Contest Clauses and the Anti-SLAPP Statute: Traps for the Unwary
12:40 PM – 1:20 PM (PST)
Keynote Presentation Sponsored by Signature Resolution: Bending the Arc of History Towards Justice in the Probate Court
1:20 PM – 1:40 PM (PST)
Break Sponsored by Jack Barcal, Esq.
1:40 PM – 2:40 PM (PST)
Tales from the Dark Side: HELP, My Client Is Getting Divorced (or Married, or Remarried). What Do I Do?
2:50 PM – 3:50 PM (PST)
How to Stretch Retirement Savings with a CRUT
4:00 PM – 5:00 PM (PST)
Better Late Than Never? The Looming Implications of Late Allocations to Sub-Trusts

For more information on our loans to irrevocable trusts and probate estates, please call us at 877-464-1066. We can provide you or your client with a free cost benefit analysis and let them know exactly how much property saving can be attained by taking advantage of a parent to child property transfer and exclusion from property tax reassessment.