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

California Loans to TCA rusts

CA Proposition 58, Loans to Trusts and Property Tax Breaks

Gifting property to adult children is a wonderful thing to do, setting aside any potential tax breaks for a moment… although property tax relief does obviously make it all the more wonderful for parents and offspring. And, thankfully, to take advantage of these benefits in all 58 California counties, you don’t always need to be wealthy, with $1,200 per hour tax attorneys standing by to manage your ability to avoid property tax reassessment, or to learn how to use a trust to save on taxes or to buy out siblings’ shares in your inherited real estate… with a trust loan.

Naturally, it doesn’t hurt to live in a state like California, where you get to save tens of thousands of dollars over the years in unique property tax breaks, tax breaks that compared to other states…. or compared to California the way it was pre-1978, before Proposition 13 came about, and later in 1986 when Proposition 58 became a reality, when Californians became able to keep parents property taxes upon inheriting property from parents, with the ability to transfer parents property taxes, inheriting property taxes that are as low as they can possibly get on a property tax transfer, with a simple parent to child transfer, or, as lawyers call it, a “parent to child exclusion”.

Another related point that seasoned California trust lenders, real estate attorneys, and realtors know quite well, is the fact that large loans to irrevocable trusts are not simply for the extremely well off. These are trust loans in California for wealthy and middle class beneficiaries alike… loans to irrevocable trusts, to buy out siblings’ share of inherited property, with sibling to sibling property transfer when selling shares of inherited property. 

This provides beneficiaries who insist on selling inherited property with secure, fair transfer of property between siblings; with enough cash to equal, in fact generally to surpass, their share in that property; this process allows the beneficiary or beneficiaries who do not wish to sell out, the absolute  right to retain the inherited property in question – plus receive a low yearly property tax rate at levels unimaginable to most property owners and beneficiaries in other states.

Quite simply, all business and residential property owners in America, nationwide, should pay no more than the 2% maximum property tax rate property owners pay ever year in California in property tax rates, plus low rates on property transfer, thanks to California Proposition 13 and Proposition 58, generally in concert with a trust loan that pays for expensive closing and legal costs.