About Trust, Probate & Estate Loans

Some of the most common Trust and Estate mortgage products are used to provide liquidity for family trusts and estates when it comes time to disburse assets. These trust and estate mortgages are placed against real estate in the trust or part of the estate, providing additional cash so that each party involved can take an equal share of the total assets. Often times, one of the primary goals of these loans is to help a beneficiary or heir keep the Proposition 13 tax base that was held by a parent or grandparent. California passed Proposition 58, Proposition 19 and Proposition 193, so that this can be done in some cases. These California propositions allow individuals to keep the low property tax base charged to their parents or grandparents. They avoid the reassessment typically called for in Proposition 13 and can save potentially thousands of dollars annually in property taxes.

Third Party Estate, Probate & Trust Loan Providers

Trust, probate, inheritance and estate loans are more challenging to find lenders for than conventional real estate mortgages. Real estate held by a trust, in probate or in an estate, can often times carry additional risks for a mortgage provider, so many institutions choose not to lend to them. In many cases your only option would be to use a private money lender for your trust or estate mortgage.

Third party trust, estate and probate loans are typically intended to be used as short term financing.  They provide liquidity to an estate or trust when a member of the trust or estate is trying to qualify for an exclusion for reassessment of property taxes. Once the real estate has been transferred to the beneficiary and the exclusion for property tax reassessment has been secured; at that point the loan is usually paid off or refinanced into a conventional mortgage.

Because estate, inheritance, probate, and trust loans are specialized types of real estate mortgages; it can be difficult to find lenders willing to provide them. Even more important is finding a reputable private money lender. Commercial Loan Corporation is a Private Money lender in Newport Beach, California that specializes 3rd party loans to trust and estates. You can find their contact information below. Unlike many private money lenders, Commercial Loan Corporation does not charge prepayment penalties or have a minimum interest requirements. That is important because on a short term trust mortgage or estate mortgage, prepayment penalties can be very costly.

IF YOU ARE IN NEED OF A REPUTABLE TRUST OR ESTATE LOAN PROVIDER, PLEASE call 877-464-1066 or complete the following form and we will forward your information to commercial loan corporation so that they can provide you with a free quote and more details on the loan process:

Here is some additional information on California Propositions related to Property Taxes, Trusts & Estates.

What is California Proposition 13?

California Proposition 13 is a California Constitutional amendment enacted in 1978. The Proposition 13 California Amendment limits the tax rate increase that can be charged annually on real estate in California. The proposition decreased property taxes by assessing property values at their 1975 value and restricted annual increases of assessed value of real property to an inflation factor, not to exceed 2% per year. California Proposition 13 also prohibited 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. California would later pass Proposition 58 and Proposition 193 which in some cases permits the low Proposition 13 tax base to be passed to an heir or member of a trust.
– Click Here For Additional Information on Proposition 13

What is California Proposition 19?

California Proposition 19, approved on November 3, 2020, is also know as The Home Protection for Seniors, Severely Disabled, Families and Victims of Wildfire or Natural Disasters Act. Proposition 19 allows those who inherit family properties to keep the low property tax base held by there parents if they use the home as their primary residence. It also allows homeowners who are over 55 years of age, disabled, or victims of a wildfire or natural disaster to transfer their assessed value of their primary home to a newly purchased or newly constructed replacement primary residence up to three times.
– Click Here For Additional Information on Proposition 19

What is California Proposition 58?

California Proposition 58 became effective on November 6, 1986.  Proposition 58, with certain limitations allows for the exclusion for reassessment of property taxes on transfers between parents and children.
– Click Here For Additional Information on Proposition 58

What is California Proposition 193?

Proposition 193 provides some of the same exclusions as Proposition 58 for Grandparents and Grandchildren when all of the qualifying parents of the Grandchildren are deceased.
– Click Here For Additional Information on Proposition 193