PART TWO: Are Trusts, Trust Loans and California Property Tax Breaks Strictly for the Rich?

Loans to Trusts

CA Proposition 58, Loans to Trusts and Property Tax Breaks

Beneficiaries in every state in America should have property tax measures like California does, and be able to use trust loans & Proposition 58 to equalize property shares sold by co-beneficiaries;  and by all rights be able to transfer parents property taxes, when inheriting property taxes in California, to themselves at the low rate their respective parents used to pay, whenever inheriting property taxes in California on gifted or inherited property — either residential or business real estate.  In all states, and especially in high tax states like New York,  Texas, Massachusetts and Pennsylvania. 

If people want to march on something, egregious property tax rates in most of this country would be worth marching for.  Trust loans & Proposition 58 in California, and by now institutionalized California tax breaks from Proposition 13, saves beneficiaries a great deal of money; avoiding property tax reassessment on the transfer costs,  plus the low base rate from parents, from CA Proposition 13.

Lawmakers in every state can, and should, pass property tax relief bills that make sense, like CA Proposition 58 and 193, enabling low raxes on property tax transfer from parents and grandparents when inheriting a home, for example… as well as maintaining a low Proposition 13 tax base from parents, forever.  California trust loans are used to resolve inherited property conflicts, between beneficiaries, working alongside CA Proposition 58 – enabling co-beneficiaries to sell shares of inherited property, a beneficiary buyout of sibling property shares… while avoiding property tax reassessment. Generally buying out a sibling’s share of an inherited house – as real estate lawyers call it, “transfer of property between siblings” or “sibling to sibling property transfer” – lending money to an irrevocable trust – from a lender specializing in trust loans and CA Proposition 58, from A to Z.

And likewise, inheriting property taxes on that home in accordance with parent to child transfer or parent to child exclusion, from present day property tax rates, avoiding property tax reassessment simply to keep property taxes low, giving beneficiaries the ability to utilize trusts for personal estate use and benefit – for all Americans; not just for the VIPs and the wealthy.  California is the model every American state should mirror when it comes to property tax relief.

If this were in fact the case, all Americans, in every state, would be able to enjoy a bit more of a sense of genuine financial comfort, with a greater sense of security, that most people associate with their home…  Placing this sense of “home security” under threat year after year, by jarring home owners and business property owners’ feeling of security, where their home is concerned, with unexpected, seemingly arbitrary property tax hikes on what is most Middle Class people feel is their most valuable asset, and the very foundation of what little security  Middle Class Americans have these days. 

Middle Class Americans as a rule do not have a seven-figure bank account or eight-figure net-worth “portfolio” that helps them sleep better at night!  In fact, a recent 2019-20 financial report tells us that most Middle Class Americans have trouble coming up with $400 in cash to deal with a personal emergency!  Bearing in mind that unreasonable taxes on their home – what they consider their base asset for personal security, along with their health and income – might intrude on their security at any time – unless controlled by iron clad property tax relief, such as the 1978 CA Proposition 13 tax break, and the 1986 CA Proposition 58 property transfer tax measure

This automatically made  unpredictable, arbitrary tax hikes, imposed by politicians with questionable motives and goals, impossible to impose on all Californians.  Property tax relief is not just a dream, as many critics in other states might suggest.  California accomplished it. Why not every other state as well?

If you are seriously considering a loan to a trust in California, to take advantage of California Proposition 58,  our Senior Editors would advise you, without hesitation, to look into Commercial Loan Corp at 1-877-464-1066 in Newport Beach, CA. This firm is one of the only California lenders that not only specializes in assisting beneficiaries with Proposition 58 – unlike conventional lenders, they are also able to lend directly to an Irrevocable Trust with loans of any size and, unlike other lenders, surprisingly, they treat all their clients like V.I.P accounts –  regardless of the size of their loan, or property value.

 

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