PART THREE: If Every State in America Had Property Tax Relief Similar to California…

California Property Taxes

Property Tax Relief for Residential & Commercial Property Owners in Every State ~ Regardless of Net Worth and Property Evaluation

It’s crystal clear to many of us that every state in the United States could propose, and pass into law, a property tax system with property tax relief measures resembling California’s Proposition 13 and Proposition 58.

As in California, states with governors that actually care about the citizens in their state; or, more specifically, residential and commercial property owners in their state – could also make use of loans to irrevocable trusts from licensed trust lenders, to provide a unique, effective way to deal with property-based sibling conflicts – or simply to mitigate crippling property tax hikes.

Again, as in all 58 counties in the state of California, with the advent of these property tax breaks, middle class family members in all states could walk through life happier, feeling a tiny bit wealthier perhaps, with a first-time sense that there is, in their state, a fair-minded property tax system in place; that regular working families can benefit from, similar to property tax relief in California — and not just V.I.P. tax breaks for wealthy property owners. 

So middle class property owners, estate heirs and trust beneficiaries would end up with a win-win inheritance or estate experience… Regardless what state they are in, what their net-worth is, or how much their inherited real estate is valued at.  As in California, property tax relief would exist in an even playing field, in all states for all property owners, for all heirs and beneficiaries who are inheriting real property.

Howard Jarvis and his team of property tax relief proponents originated California Proposition 13 property tax breaks, which later spawned Proposition 58 tax benefits, including the ability to keep parents property taxes, while avoiding property tax reassessment… However they did not realize, in their own time, was that the property tax measures they had invented, actually reflected the property ownership and fair-minded taxation controls that the founders of this country had in mind from the  very beginning.

Property Tax Relief Patriots 

Yearly uncontrolled, unpredictable, crippling property tax hikes every year – that sees elderly widows being evicted, and aging retirees and veterans living on fixed incomes foreclosed on, and thrown onto the street – was certainly NOT what the founders and rebellious patriots had in mind over two hundred years ago, when they fought their way out from under egregious taxation imposed by a certain British king.

Different, yet similarly effective measures is essentially what a certain successful patriotic landlord named Howard Jarvis accomplished when he and other supporters of property tax relief fought for Proposition 13, for the ability to avoid  property tax reassessment under present day rates; for parent to child transfer or parent to child exclusion when benefiting from parents’ property tax transfer. They won the right of CA Proposition 13 transfer of property, and won the ability to transfer parents property taxes and keep parents property taxes, when inheriting a home and/or land and when inheriting property taxes associated with their inheritance.  They managed to put authentic property tax relief in place in the great state of California, in 1978 — not just for V.I.P.s and the wealthy (as current critics falsely claim), but for the middle class, and all Californian property owners .

Therefore, if we want to benefit from a long-term, reliable system of property tax relief measures, and get out from under yearly, frequently debilitating property tax – we’re going to have to educate ourselves on what type of property tax relief system each state requires; and go about discussing these property tax relief measures with approachable government representatives, approximating what  Mr. Jarvis had accomplished, with the help of other property tax relief patriots, 42 years ago.

PART SIX: Coronavirus Crisis in California Motivating Certain Politicians to Push Harder for “Split-Roll” Property Tax

The Property Taxes In California

The infamous Proposition 15 Split-Roll property tax is naturally unpopular with most Californians… Of course, when did popular preference ever convince politicians of a certain stripe to do anything!  They typically do what will benefit them

At any rate, most Californians realize this new property tax, initially titled “Proposition 13 / Split-Roll Property Tax” and now called “Proposition 15”  will end up raising prices of goods and services all across California… Not to mention increasing industrial and commercial rents, not only causing their prices to go up, but worse case scenario forcing many middle class companies to simply close their doors! Or to move out of state… if they’re lucky.  And it’s definitely worth mentioning that minority owned businesses, and other concerns that are bravely holding on without tremendous cash reserves, will be particularly hard hit and negatively impacted.

The fact that (as Jon Coupal, President of the Howard Jarvis Taxpayers Association, says) “tax-hungry public sector labor interests” are determine to strip away genuine Proposition 13 property tax relief protection from business properties and industrial facilities, to bank what they believe will be something in the neighborhood of six to twelve billion dollars per year from property taxes. 

Interestingly enough, even their gross property tax intake projection is tremendously inaccurate and uneven!  If their math is that volatile at merely the initial projection stage, at this point – what will it look like when taxation revenue wheels are turning for real?  Their Proposition 15 measure on the November ballot would apparently  need constant reassessment of business properties, revising the 2% cap in yearly increases; exactly to what degree no one really knows.

Fortunately, most of the public is either old enough to remember, or has older relatives that do remember, what life was like in California before the 1978 Proposition 13 property tax relief measure was passed… Ending up saving property owners and beneficiaries or heirs of estates thousands of dollars in property taxes every year, simply by being able to avoid property tax reassessment in CA. 

It’s fairly obvious to most of us that the new property tax entitled Proposition 15 is guaranteed to not accomplish what critics of property tax relief insist it will accomplish. The outcome is rather clear.  It will merely end up increasing consumer rents;  severely raising commercial and industrial rents; raising the cost of countless goods and services favored by consumers; and force who knows how many mid level companies to go out of business… all across the great Sunshine State.  A colossal disaster, with numerous tentacles, just waiting to happen.  

Californians can never lose sight of what Proposition 13 has accomplished for them, as well as property tax transfer benefits from Proposition 58, from parents; and Proposition 193, from grandparents.  Moreover, what that form of genuine property tax relief really looks like, and exactly what it provides Californians with!  Moreover, fighting a war against a Pandemic, with tens of millions of job losses resulting from the Covid-19 crisis — nothing would help middle class, upper middle class and working class Americans more right now than a nation-wide system of property tax breaks mirroring Proposition 13 & Proposition 58 property tax relief.

Starting with the ability to avoid property tax reassessment in CA… and moving into the legal right, for the very first time, for beneficiaries and property owners in California to be able to transfer parents property taxes upon inheriting property taxes from inherited property; with the ability to keep parents property taxes, and to keep it at the usual Proposition 13 low 2% capped property tax base… For any property tax transfer from parent to offspring, or as they say “parent to child transfer” or “parent to child exclusion”. 

Exclusion, that is, from current property tax reassessment. The right to avoid property tax reassessment in CA is indeed unique, as no other state even comes close to providing this type of middle class property tax relief. And anyone who attempts to come up with  unrealistic reasons to destroy these tax breaks – claiming it’s only for wealthy Californians, or that it’s really all about seniors intentionally keeping their property off the market for this reason or for that reason – is, frankly, delving into fiction. These claims are either exaggerated, or just simply untrue.  

Faced with higher property taxes, commercial property owners with leases will most  likely be motivated to pass these increased costs on to their tenants.  For example, the owners of  shopping centers or strip-malls, with numerous commercial tenants, would be faced with  increased property taxes if the Proposition 15 / Split-Roll tax passes…   and will, without question, increase the rent of every concern you go into every week to purchase new  goods, as well as products you pretty much cannot do without.

As we’ve already indicated here, when faced with more expensive rents, business tenants will be forced to increase the pricing of their products or services, obviously to offset significantly higher rents… The long and the short of it?  This supposedly “revised” Proposition 15 Split-Roll commercial & industrial property tax (cleverly devised reassessment exemption or no reassessment exemption!)  will increase the cost of living across the board for all Californians, right down the line – as sure as we breathe oxygen and need clean air.  

>> Click Here: To Continue to Part Seven…

PART TWO: Coronavirus Crisis in California Motivating State Politicians to Push Harder for “Split-Roll” Property Tax

California Property Tax Changes

Even without California’s ill-advised Split-Roll property tax measure looming over every renter and residential as well as commercial property owners’  head throughout the sunshine state — California has already been grappling with lopsided expenditures such as over-spending on state & local government  salary increases, healthcare benefits, and lavish vacation time… Rather than budgeting properly for public works that would actually be beneficial for regular every-day Californians rather than folks with elite government positions.

Residents of this state are already dealing with unusually high taxation (other than property taxes), and other challenging regulations that make it difficult as it is for California businesses to compete effectively in a number of important and popular industrial and commercial playing fields.  

Let’s face facts… an $11 billion Split-Roll property tax increase  on business and commercial property owners would, without question, prevent businesses based in California from hiring new employees;  and would make it more difficult to retain existing employees.  

And you can forget about Christmas bonuses and/or timely raises, not to mention maintaining proper levels of health coverage!  It’s obvious that stability and predictability provided by 1978 Proposition 13 property tax relief has helped businesses in California to compete on a national level regardless of the fact that doing business in California is expensive to begin with!

Even if correctly managed, tax assessments will mirror the ups and downs of  the real estate market in  California— resulting in volatility, the way things were prior to 1978 when Proposition 13 was passed into law.  During low economic times this would most likely end up leading the state into an even more severe loss of revenue. 

If you think back… during the 2008— 2009 recession, commercial property values dropped by over 35%, mainly due to the economic recession.  These abrupt and  unpredictable economic shifts are what motivated unease and unhappiness among California property owners before 1978, and ultimately led to the big win pushed by the Howard Jarvis Taxpayers Association and others, leading ultimately to the passage of  Proposition 13 in the first place. 

Proposition 13 stabilized the property tax revenue system by capping property taxation at 2% plus nailing down property owners’ right to avoid property tax reassessment… with other stabilizing influences,   rules and iron clad regulations favoring the taxpayer for the first time.

Much to most beneficiaries’ surprise, it also became possible for estates to entertain certain options, where none existed previously; such as beneficiaries who were intent on retaining inherited property from parents now being able to buyout siblings that wanted to sell their property shares… Through a loan to an irrevocable trust, working alongside CA Proposition 58. 

Trust loans have become popular throughout California, to resolve heated sibling “inherited-property conflicts”, working in tandem with CA Proposition 58,  once those beneficiaries looking to keep inherited property actually qualified – enabling their co-beneficiaries to buyout siblings’ shares of a home usually… typically called a “beneficiary buyout of sibling property shares”.

While at the same time the siblings keeping the home were now able to legally avoid property tax reassessment, by using a trust loan to buyout a sibling’s share of an inherited house – or, as realtors call it, “a transfer of property between siblings” or “sibling to sibling property transfer” – whereas regular middle class folks simply refer to the process as “getting cash from a trust loan to buyout siblings’ shares in inherited property”.  Most people prefer to keep things simple.  As we do.

It  was unthinkable that the bad old days would even have a remote chance of returning…  Until now. 

>> Click Here: to Continue to Part Three…

PART FOUR: Irrevocable Trust Distribution Loans

Irrevocable Trust Distribution Loans

Stronger Family Security With Lower Property Taxes

As beneficiaries and heirs in California inherit family real estate, they are also inheriting property taxes. They generally transfer parents property taxes; taking advantage of property tax transfer – which attorneys often refer to as parent to child transfer or parent to child exclusion… thanks to Proposition 13; and Proposition 58 which also enables beneficiary buyout of sibling property shares.

Regrettably, siblings in California who are trying to keep property left to them by parents, frequently find themselves involved in emotional and financial conflict with co-beneficiaries who wish to sell their inherited property to an outside buyer.

Fortunately, many siblings looking to retain that type of emotionally based property for their family will often be able to buy out beneficiaries looking to sell their property shares with the help of a trust lender providing a loan to an irrevocable trust, typically referred to as a beneficiary buyout of sibling property shares. 

As many Californians know by now, a trust loan, working in concert with CA Proposition 58 tax relief, makes it possible for beneficiaries to sell shares of their inherited property, also called a “beneficiary buyout of sibling property shares”, which is typically just buying out a sibling’s share of an inherited house, maybe with an acre or two of land – or, as real estate lawyers refer to it, “the transfer of property between siblings” or “sibling to sibling property transfer” – by lending money to an irrevocable trust – typically from a seasoned California irrevocable trust loan lender, commonly called trust lenders, simply specializing in trust loans of all sizes.     

Property tax transfer benefits furnished by CA Proposition 58, provides a parental property transfer tax break typically called “parent to child transfer”… whereas CA Proposition 193 provides the same type of tax relief, only for grandparent to grandchild property tax transfer – while California Proposition 13 maintains their parents low property tax base, capped at 2% for beneficiaries, thankfully avoiding property tax reassessment at current tax rates basically forever, which adds up to significant numbers over the years and decades.

Beneficiaries, with these sort of inherited property conflicts, are usually motivated to save on property taxes, and generally enlist the help of a known trust lender in California that is experienced with loans to irrevocable trusts, plus utilizing California Proposition 13 and the Proposition 58 property transfer tax break. Exactly as the O’Neil family wished to do, as it happens with the help of a company called Commercial Loan Corporation.

If qualified, and over 55 years of age, many property owners involved in this exact process can also apply a significantly lower tax rate to a secondary dwelling, as long as they own the initial inherited property for 2 years or longer.

Rules, Regulations and Critical Steps for Irrevocable Trust Loans – in Concert with California Proposition 58 or Proposition 193:

1. Deciding who will keep the property
2. Determining final trust loan amount
3. Loan to trust/estate is executed
4. Trust lender equalizes cash distribution to beneficiaries
5. Property is transferred to acquiring beneficiaries name
6. Parent child exclusion is filed, avoiding property tax reassessment
7. Five to seven day trust funding turnaround is expected
8. The trust loan is repaid, finalizing a win-win family agreement
9. No Hidden Fees

An Alternative Lending Solution for Heirs and Beneficiaries

Both beneficiaries featured here, of the O’Neil family, discovered the Commercial Loan Corp with the help of their real estate attorney. They were both extremely motivated to get a $267,000 trust loan underway as quickly as possible.

The personal issue that appeared to motivate the initial call to the trust lender, besides saving money on property taxes, is the fact that both beneficiaries have wanted to keep this property in the family for a long time – to pass the property on to a daughter, enabling that daughter to keep the property as well. She wouldn’t be able to afford this property if the taxes went up, so it was essential that they reserved a low Proposition 13 driven property tax base.

Accepted assessed value of the inherited property was $400,000. Annual property tax savings was estimated to be $1,970. One beneficiary wanted to keep the property, with the other beneficiary looking to sell to an outside buyer, however both siblings appeared to get along well and basically agreed on all key points, of both minor and major importance – and after no time at all agreed to keep the property, as soon as Senior Account Executive Tanis Alonso from Commercial Loan Corporation explained the tax savings and the trust loan and Proposition 58 combined process to them, in simple easy-to-understand terms.

Both siblings agreed that their positive childhood memories were attached to the house they were inheriting, and this was important to retain, and maintain, for both siblings emotional and financial well being.

Bottom line, the cost of selling the property outright to an outside buyer would have been $24,000. Cost to the O’Brien family using the Commercial Loan Corp loan-to-trust process (i.e., not having to sell the property), while happily being able to keep their parents beloved  home forever, at a low yearly tax rate, which is only $10,602. Savings for the O’Brien siblings was a significant $13,398.

If you have questions about a loan to an irrevocable trust, you can reach Tanis Alonso at 877-464-1066.

PART THREE: Loans to Irrevocable Trusts and Equalizing a Trust Distribution

Lending to an Irrevocable Trusts

Improving Family Security With Low Property Taxes

When beneficiaries in California are inheriting real property and looking to transfer parents property taxes, it’s typically a house possibly with some land from parents… and yet when they are involved in emotional and/or financial conflict with co-beneficiaries, generally siblings – revolving around the issue of retaining an inherited property, or selling it to an outside buyer, one or more beneficiaries who prefer to keep the property in question frequently will attempt to buyout the beneficiaries looking to sell their shares in an inherited property.

One increasingly popular method of being able to transfer parents property taxes, while accomplishing an inherited property buyout, involves the hiring and collaboration of a trust lender that is experienced in loans to irrevocable trusts, as well as the expert use of California Proposition 13 and the Proposition 58 property transfer tax break measure. As is the case in this particular account involving the Smith family in Southern California, and the Commercial Loan Corporation.

If qualified, and over 55 years of age, many property owners involved in this exact process can also apply a significantly lower tax rate to a secondary dwelling, as long as they own the initial inherited property for 2 years or more.

Rules, regs and steps regarding the trust loan process – in conjunction with California Proposition 58:

1. Determination of who will keep the property
2. Determination of the loan amount
3. Loan to trust/estate is implemented
4. Trust lender equalizes cash distribution to beneficiary or beneficiaries
5. Property is transferred into the acquiring beneficiaries name
6. Parent child exclusion is filed, avoiding property tax reassessment
7. Five to seven day funding turnaround
8. The trust loan is repaid, concluding a win-win family arrangement
9. No Up-Front Costs
10. No Hidden Fees

An Alternative Financial Solution for Beneficiaries

One member of the Smith family found the Commercial Loan Corp firm on Google.com, while the other three family members were referred to the trust lender by their attorney. Interestingly enough, all members of the Smith family ended up finding and calling the trust lender at their Newport Beach office separately on the exact same day. They all were extremely motivated to get this transaction closed as rapidly as possible.

The personal issue that appeared to motivate the call to the trust lender, referred by the Smith family’s attorney, was concern that all four Smiths had for tax savings derived from applying a trust loan; involving their inherited property valued at $900,000 – in conjunction with tax breaks made possible by California Proposition 58. Only one of the siblings was interested in selling their inherited property, as it happens. The amount of the trust loan applied was for $675,000. Estimated Annual Tax Savings for the Smith family was calculated to be $6,064.

Fortunately, the Smith family got along well, and all agreed their main interest was to retain the low tax base their parents had paid yearly, thanks to California tax break Proposition 13, which makes it possible for folks to keep parents property taxes, transfer parents property taxes at the low rate they used to pay, and basically enjoy the benefit of inheriting property taxes that are as low as they should be.

The Smiths wanted to avoid property tax reassessment… and to take advantage of Proposition 13 and Proposition 58 protected property tax transfer and parent to child transfer; commonly known as parent to child exclusion (from present day property tax reassessment).

The three siblings looking to keep their parents’ home all agreed they should buy out the one sibling looking to sell as quickly as possible. Buying out a siblings share of house, or buying out a sibling’s property shares is also referred to as sibling to sibling property transfer, which is where an estate loan working with Proposition 58 comes in to play. Beneficiary buyout of a sibling’s property shares was made possible in this scenario by the Smith’s $675,000 trust loan.

Bottom line outcome is that the cost of actually selling the $900,000 property to an outside buyer would have been $54,000. Not selling the property and using the loan to a trust to buyout the one sibling, and process entire transaction, cost the family only $20,764, This meant an extra $33,236 in cash to the trust in savings for the Smith family.

PART TWO: 100% Secure Trust Loan Distribution Equalizing Solution

Lending to Irrevocable Trusts in California

Improving Your Family’s Security With Low Property Taxes

When families in California are going through an estate and/or probate scenario, are inheriting property, and are unfortunately  experiencing conflicts between beneficiaries who wish to retain their inherited property, and siblings who want to sell their property shares – frequently, a loan to an irrevocable trust, and a trust lender you can depend on to be reliable and affordable is the answer.

Many property owners can also be qualified to apply and keep a significantly lower tax rate to a secondary dwelling as well, if over 55 and retaining the initial inherited property for 2 years or longer.

Steps, rules & regs for the trust loan process – in conjunction with California Proposition 58 – are typically as follows:

1. Determination of who will keep the property
2. Determination of the loan amount
3. Loan to trust/estate is implemented
4. Trust lender equalizes cash distribution to beneficiary or beneficiaries
5. Property is transferred into the acquiring beneficiaries name
6. Parent child exclusion is filed, avoiding property tax reassessment
7. Five to seven day funding turnaround
8. The trust loan is repaid, concluding a win-win family arrangement
9. No Up-Front Costs
10. No Hidden Fees

An Alternative Financial Solution for Beneficiaries:

The Miller family in Southern California urgently needed a $320,000  trust loan to equalize distribution involving an inherited house valued at $615,000. They were very concerned about tax savings as well as keeping the home they have been living in for the past 10 years. Their family attorney referred the Millers, totaling four siblings, to the Newport Beach trust lender Commercial Loan Corporation.

Their inherited home was valued at $615,000, and the two beneficiaries who were interested in selling the property to an outside buyer were to be bought out to the tune of $205,000 each with the cash from a trust loan, instead of selling to a buyer, with the other two siblings losing the beloved home the family was attached to for sentimental reasons.

If the property was to be sold to a third party buyer and their property taxes reassessed normally, their estimated property taxes at current value (1.1%) would have been $6,765. If the one beneficiary was bought out by the trust loan, allowing the other three siblings to retain the home, estimated taxes were to be $4,164. An estimated property tax savings of $2,601 per year. Looking at this realistically, their income before income tax would be somewhat higher than that figure, to come up with $4,164 in cash every year to pay off those property taxes. It would have been a significant sum for a normal middle class family.

The situation was apparently very difficult in terms of getting everyone on the same page, agreeing to all the numbers. Sibling squabbling had gotten heated over the months they had spent dealing with house issues, and the in-fighting became so
intense that both beneficiaries looking to sell out actually hired separate attorneys to represent their interests. It got to the point where the family spent more time arguing on a daily basis, than doing anything else.

According to an account rep who is particularly experienced with loans to irrevocable trusts, Miss Alonso, the family arguments began to dominate all of their time together. It seemed impossible for them to agree on anything. There was also conflict between the two beneficiaries looking to keep the property. Both agreed to the process of transferring property and buying out beneficiary shares, however disagreed on what values to use. Each thought the other was attempting to trick or fool the other.

It began to look unworkable. Some of the siblings even threatened to take the matter to court of there could be no agreement on the numbers involved.

Yet, in the final analysis, the one issue that prompted the call to a trust lender that furnishes loans to irrevocable trusts, Commercial Loan Corp, and bound a thread between them all was their genuine desire to continue living in the home they had resided in prior to their parents’ passing away. In the end, this particular desire to stay on in the house was even more important to this family than the numbers and interest in saving on property taxes!

It took some time to finally normalize the situation and get all these family members on board with numbers they could all agree upon. However, the account rep, Miss Alonso, was able to eventually get everyone to the table, and to agree on the final numbers.

Everyone ended up happy with the deal, and with their tax savings looking ahead towards their projected property tax realities. Bottom line, it would have cost $36,900 to go through with a sale of the property in question. And only cost $11,919 if the family decided to simply retain the property as is.

Additionally, the trust received an extra $24, 981 in cash by keeping the property, and agreeing not to sell. All the way around, their decision to enlist the help of a firm experienced with loans to irrevocable trusts, and to keep the home of their beloved parents for sentimental reasons, ended up, ironically, being a far more sensible decision for the entire family group financially.

To reach Commercial Loan Corporation regarding assistance with a loan to an irrevocable trust, call 877-464-1066.

PART TWO: Why is California the Only State Where Trust Loans Can Equal Low Property Taxes for Life?

CALIFORNIA TRUST LOANS

Newbies in the trust loan and Proposition 58 property transfer and inheritance process learn the rules & regulations from their trust lender of choice – more often than not choosing the Commercial Loan Corp in Newport Beach, statistics tell us, for whatever reason…  Avoiding property tax reassessment on an inherited property, with the CA Proposition 58 & 13 property tax transfer – subsequently  inheriting parents property taxes – establishing significant tax relief for residential and/or business real estate.

Folks that are new to this process also learn very quickly, when they start wondering what it might cost of they used their own cash (if they actually have that much in the bank), that there is more to using a trust loan than at first appears, with respect to tax savings, but also saving of process costs and fees as well. That is often the most interesting part…

Those beneficiaries looking for a loophole, where they can possibly avoid the cost of a trust loan – find out rather quickly, and abruptly, that it will cost them nearly twice as much using their own money – and that a trust loan used in this way is literally the only way to provide themselves with enough cash to enable each heir or beneficiary the ability to receive an equal portion of the assets of a trust or estate inheritance.

They all find out that in fact this is not only the best way to go – it’s the only way to go! They all discover that this trust loan process  allows siblings to keep a family home without all the stress and cost of spending their own funds, without an expensive real estate law firm or pricey 6% realtor, they find out they can now transfer at a much lower cost – and with much lower property taxes.

And, at the same, beneficiaries discover this approach allows beneficiaries looking to sell out to get the cash they wanted from a sale, yet without having to go through all that stress and trouble and expense to sell their inherited property to a typically greedy buyer looking to negotiate them down to a much lower selling price. The obligatory price negotiation.  So you wind up spending more – and profiting less.

All around, this is a much more affordable way to go. Well, look at the numbers – you have a realtor you need to pay 6% to, right? You have a real estate attorney you need to pay $500 per hour to, correct? Plus, other incidental fees and outlays. And in the end, selling to a buyer, you wind up with far less cash in your pocket than you would going down the trust loan / Proposition 58 avenue. 

People new to trusts being used in this fashion, understand right away that their ability to keep parents property taxes and to transfer parents property taxes means they will be inheriting property taxes as a basic Proposition 13 property tax transfer, parent to child transfer,  or parent to child exclusion, that will end up saving them tens of thousands of dollars, if not hundreds of thousands of dollars, in the long run. 

Trust loans, working alongside CA Proposition 58 makes it possible for beneficiaries to sell shares of inherited property, called a beneficiary buyout of sibling property shares, while avoiding property tax reassessment.  generally buying out a sibling’s share of an inherited house – or, as real estate lawyer refer to it, “the transfer of property between siblings” or “sibling to sibling property transfer” – by lending money to an irrevocable trust – typically from an irrevocable trust loan lender, commonly called trust lenders, specializing in trust loans.          

In fact, on average, beneficiaries typically save more than $6,200 annually in property taxes – year after year, basically forever – simply by taking advantage of the tax break afforded by Proposition 58, and preserving parents low Proposition 13 property tax base – a basic CA Proposition 58 & 13 property tax transfer. Never forgetting that the trick is to choose the right trust lender… and the right real estate or estate attorney to guide you through the process.

The convenient thing about a trust lender like Commercial Loan Corp is that with a company like them, you don’t need to depend the extra money on a lawyer, as you get all those extra services in a package, basically at no extra cost.

So if you’re in that position right now, and need to make some wise decisions, as to sell or not to sell, as Shakespeare might have put it – start educating yourself with dense but well organized official gov. info, and Click Here: California State Board of Equalization Website.  You can also Click Here: for a top notch niche Proposition 58 info site Or  for  well vetted, easy to understand and highly specialized information on  trust loans, Proposition 13 & Prop 58 ~ Click Here  However, there are only a few first-class Websites like this. You might also look further  here, on this site, with one of the many blog articles or interviews that address what you want to look into, and apply it to your own scenario,  starting with: Transferring Property Taxes in California  (Click Here)

PART ONE: Why is California the Only State Where Trust Loans Can Equal Low Property Taxes for Life?

TRUST LOANS

In every American state but one, in all 3,143 counties in America,  trust funds have the reputation for being a rich person’s tool for deferring and/or lessening taxes…  And that one state where trust beneficiaries have more options, are in fact actually able to receive or assign funds outside the “normal” distribution schedule, with trust loans for a buyout of sibling property shares, for example – is California and all its’ 58 counties.   

Despite the fact that beneficiaries of  trusts in California are totally blocked by a Spendthrift Clause that is written into most California trust funds, therefore are unable to get an inheritance cash advance assignment – they can, with the help of the California  Proposition 58 tax break, if they are inheriting real property from parents, inheriting parents property taxes capped at 2% thanks to CA Proposition 13 – get a large  trust loan to work with.

As most of us know, beneficiaries in California have the right to  buy out co-beneficiaries’ (typically siblings) shares in an inherited property through a loan to an irrevocable trust.  Siblings that, for example, refuse to retain an inherited property, and are inflexibly intent on selling to an outside buyer.  Moreover, the same access to additional distribution options like a trust loan, exist for business property owners as well… Which is why there has been so much push-back against the co-called  2020 “Proposition 13” business property tax being floated  out there for California property owners to vote on.  As you can guess, this is not a popular tax!

That is precisely why so many people love owning property, and residing in, the state of California. If you’re inheriting property in California from your parents, and it’s in trust, as we mentioned,  even if the ever-present Spendthrift Clause prevents you from obtaining a probate advance or inheritance cash advance assignment from a standard inheritance advance company – you can always set yourself up with a low tax rate for your inherited property… plus get cash from a trust loan within five to seven days generally.

Every other state in the union should, by all rights, have property tax breaks similar to Proposition 13 and Proposition 58, for parent to child transfer of property, or Proposition 193, for grandparent to grandchild property transfer

However, California is, sadly, the one lonely state where you can avoid property tax reassessment, capped at 2% with Prop 13… Plus keep parents property taxes and transfer parents property taxes, inheriting parents property taxes at super low base rates. With the ability to use Prop 58 property tax transfer, with, as real estate lawyers usually call it, “a parent to child exclusion”.  Why?  We imagine it’s simply a matter of lack of leadership to pave the way, and put pressure on local politicians, as Howard Jarvis did in the mid to late 1970s –  hitting paydirt with the CA Proposition 13 tax break in 1978! The history of which can be found here.

So the great thing about inheriting property in California is that you can not only buy out beneficiaries share of an inherited house – you can also keep that contested property from parents, with a trust loan, and wind up paying incredibly discounted property tax as long as you retain that property – plus apply the same tax break to a secondary property as well, if you’re in that position, and can afford to upkeep that home or property as well.  As discussed on business sites such as Commercial Loan Corpwith articles and interviews that dig into trust loan issues using Proposition 58 as a tax break solution

As you most likely already know, this makes it possible for a beneficiary to buyout  shares of inherited property from another sibling, or co-beneficiary – which lawyers call “a beneficiary buyout of sibling property shares” – or “buying out a sibling’s share of an inherited house” – or, as realtors refer to it, the “transfer of property between siblings” or “sibling to sibling property transfer”. Always through an irrevocable trust loan lender you feel comfortable with, that you know specializes in trust loans, various uses of trusts, estates, and inheritance assets.

And the catch is, that you always need a trust lender to help you determine and assemble all the complex requirements needed to get approved for the California Proposition 58 equal distribution process. The trouble is, it doesn’t happen by itself – something that many beneficiaries don’t fully understand, when they start out down the road with this process.

>> Click Here to Continue to Part Two…

PART FOUR: Coronavirus Crisis is the Last Thing the California Real Estate Market Needed!

Corona Virus and Real Estate

In the final analysis, we must admit that the Coronavirus crisis is in fact the very last thing we needed in California – given the chronic problems with the job-based economy, and conflicts within various markets – the troubled agriculture business and the real estate market, just to begin with. 

Since 2016, we could clearly see a  downwards cyclical trend in California, revealing shrinking home sales.  And for whatever reason, we’re experiencing a peculiar growing trend, featuring  conflicts between siblings and other family members within estates and trust funds, typically with real estate.. with less and less cash each year that goes by. 

These conflicts between sibling beneficiaries typically revolve around inheriting real property, with one or more heirs and/or beneficiaries wanting to take more than their fair share of inheritance assets… Moreover, we see a lot of sibling conflict  revolving around the question of who will retain inherited property, or will beneficiaries looking to sell that property to an outside buyer win that battle of wills…. Taking the estate into an area involving parent to child exclusion, and transfer of property between siblings, or buying out a siblings’ share of a house, also known as buying out siblings’ property shares or sibling-to-sibling property transfer.

Interestingly enough, it is only in the state of California where you have property tax relief which actually looks like tax savings set up specifically to deal with economic problems brought about by the Pandemic – in every state… Put forth and passed by Lawmakers that actually care about the well being of the American people. 

CA Proposition 13 and Proposition 58 would actually be excellent tax break solutions for folks in every state right now, with a relentless Pandemic causing death and mayhem, both with our health, and with our job based economy.  This type of property tax savings for American home owners would be right on time – where you can keep parents property taxes, transfer parents property taxes, while inheriting property taxes at a low 1978 Proposition 13 base rate… Having the ability to use Proposition 58 property tax transfer benefits, with parent to child transfer or, as lawyers call it, “parent to child exclusion” – covered on trust lender Websites…   Property owners in every state should be learning more about these types of tax benefits, on official Websites such as the official California State Board of Equalization site; or at one of the free, well researched, well vetted niche California tax relief resource blogs like this site.  

It’s important to learn how trust loans work alongside reliable  Proposition 58 or Proposition 193 property transfer tax break benefits, making it possible to establish and retain a low Proposition 13 tax base with parent to child exclusion guaranteed; upon any  beneficiary buyout of sibling property shares, or as realtors call it, “the transfer of property between siblings”, and “lending money to an irrevocable trust“ – typically from an irrevocable trust loan lender with a solid, reliable reputation.

Learning about these tax breaks, and how they work with trust loans or without… will strengthen residential and commercial property owners’ ability to communicate  the right data points to their so-called representatives in Washington… with the hope that one of these days, sooner than later, we’ll start to see property tax relief being established in every state in this country, just as they have in the state of California. 

And yet  now with all the problems in the real estate market brought about by the Coronavirus Pandemic, with home sales on the wane as potential buyers cancel house viewings, or flat out decide against risking a large down payment and pricey monthly mortgage payment due to fears that they may lose their lucrative  white collar job in the very near future… Or that their investments in the stock market or in CDs may plummet any day soon.

With the Coronavirus crisis literally paralyzing the real estate market, and the retail as well as service industries in California; and elsewhere, doing exactly as it wishes to do with us essentially, as we continue to flounder.  With absentee leadership and misinformation costing thousands of fatalities, and an economic disaster getting more and more serious by the day. 

Looking at this issue realistically, we’re now talking about 45 million people filing for Unemployment. 2,415,000  jobs lost just in April 2020 alone as an example, and similar losses before and thereafter, as months go by and the virus deepens it’s effect on our way of life.  With tens of millions of people out of work.  We’re now talking about almost double the number of Americans unemployed during the Great Depression, which was over 25 million.  Let’s look at California, given the plunge of the real estate market due, to a large degree, to the Coronavirus crisis.  

California home sales fell to the lowest level since the last “Great Recession” as the housing market suffered the full impact of the Coronavirus Pandemic in May and sales remained below 300,000 for the second straight month, the California Association of Realtors informed us recently.   May 2020 home sales in California decreased 13.9% from 277,440 in April and down 41.4% from 12 months ago, when 407,330 homes were sold within that year. It was the second straight month that home sales dropped below 300,000 units. Additionally, the past year’s plunge was the largest drop in home sales since the Recession beginning in November 2007, contributing to a sales drop of 12.9%

It’s odd that experts are warning us that California could see a 20% increase in homelessness if this current economic downturn continues month after month. We may see as many, if not more,  evictions and foreclosures in California than we had during the last  “Great Recession”.   Not only that, with bread lines continuing to mushroom all across America; teeming with Americans in long lines of cars… apparently in their 6th or 10th or 12th week of unemployment, what would help residential and commercial property owners would be property tax relief similar to how it’s done in the great state of California. 

This is precisely the tax relief model that should be reviewed by Congress as a serious non partisan, non political Emergency Disaster Relief Measure… being that California the only state in America where you can still  avoid property tax reassessment at current rates; capped at 2% taxation, thanks to the original 1978 CA Proposition 13.

Websites that focus on California Proposition 58, on property tax transfer and on how trust loans from trust lenders work for estates   with property conflicts between siblings… equalizing distribution of cash, as real estate attorneys put it – so all beneficiaries walk away feeling they got what they wanted, and that it was win-win for all concerned.  This would give beneficiaries and home owners alike enough info on property tax transfer and parent to child exclusion, and property tax relief in general, to put their demands in writing to Congress…  and demand property tax relief as part of the Coronavirus Stimulus Package!  It would certainly make a great deal of sense right now, no question about it.

PART THREE: Coronavirus Crisis is the Last Thing the California Real Estate Market Needed!

California Real Estate and the Coronavirus

With 50 million plus people having signed up for Unemployment in the USA,  that means  not working, and counting, thanks to the Coronavirus financial Tsunami sweeping across the United States, and most of the world, every single state in this country should have property tax transfer rights, to keep parents property taxes,  with their Proposition 13 protected property tax base.  In other words, maintaining the legal right to transfer parents property taxes to the property they inherit, whenever inheriting property taxes, regardless of the value of the property they receive.

Basically, in every state, we should have low tax base for home owners when inheriting a home and/or land from parents, from Proposition 13 tax breaks and Proposition 58 property transfer tax discounts, with Proposition 13 protected property tax base; always avoiding property tax reassessment.  This would help so many struggling middle class and working class Americans right now; during a Pandemic that unfortunately is going to be with us for some time.  Even if we get a vaccine soon.  

Were it not for Proposition 13 and Proposition 58 in California,  property taxes would be prohibiting many home owners from both retaining a home they have bought, as well as real property they may have inherited. 

With property taxes in 49 other states making life so difficult for so many home owners during normal times… when you examine the hardships property taxes are causing property owners throughout the United States during an economic depression caused by an out of control Pandemic… you have to come to the conclusion that something must be long-term.  All the more reason for genuine property tax relief to be installed immediately in states sinking deeper into recession, and even depression, month after month.  With no let up in sight.  

It’s not always about making more, its often about spending less.  And property taxes cut deeply into peoples’ savings every year when it comes time to pay those taxes.  With no payment plan allowed!  Especially during a Pandemic and ensuing economic crisis.  So you either come up with the cash, or lose your home!  And with so many home owners out of work during the Covid 19 crisis – and with so many more to come, surely  property tax relief would certainly be one solution to consider as a national disaster relief option for lawmakers  in Washington…. if they could be forced by massive public opinion to focus on long-term solutions.

And this issue of property tax relief touches so many situations and financial activities.  For example, in California it’s stunning to see how so many beneficiaries and heirs of trusts and estates opt for a loan to an irrevocable trust from a trust lender, so they can buyout property shares from other beneficiaries, usually siblings – saving a great deal of money on initial transfers of  property.  Plus retaining parents property taxes with Proposition 13 protected property tax base – allowing beneficiaries who do not wish to sell out, to keep a beloved home inherited from parents they love, which middle class beneficiaries typically, otherwise, could never afford to keep, due to tax hikes & property taxes reassessed at current rates. Thus saving tens of thousands of dollars in property tax breaks on inherited property from parents – basically forever. 

We don’t realistically expect passive Lawmakers or Senators  to consider this immediately, as they clearly aren’t giving the plight of their constituents much thought – however some could be working on this a little harder, with a little more imagination – swapping out all those cliches for a little more action!

Heirs in every state should be able to keep parents property taxes, transfer parents property taxes when inheriting property taxes from inherited property. And this includes any type of property tax transfer, as we’ve mentioned here already with parent to child transfer, or as lawyers call it, “parent to child exclusion”.   There should be a state tax break every American property owner has a right to, no matter what state he or she resides in. The public in the Midwest and down South should be thinking about that, and hammering away at their representatives in Washington, instead of obsessing on guns and political red herrings.

Home owners and beneficiaries in every state right now are suffering like everyone else… as bread lines accelerate  in many states, everywhere, especially in those Midwestern and Southern states.  In every state, property owners should be able to use a trust loan to resolve inherited property conflicts, just as they can in California between beneficiaries, working with CA Proposition 58 – enabling co-beneficiaries in every state in the union 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 realtors call it, “transfer of property between siblings” or “sibling to sibling property transfer” – lending money to an irrevocable trust from a trust lender… Just like in California.

Besides one short lived effort, and thank goodness for it, to help middle class and working class Americans to bridge the gap between personal disaster and paying a few bills – our national Congress must develop a more realistic, long-term initiative to help the country more than simply for a month or two, with $1200 or $2400.  No one is quite sure exactly what that entails…

However, we’re all sure about one thing.  This country needs something to help citizens move forward with less anxiety and fear… and it’s clear that lowering, and perhaps deferring, property taxes is one solution that, although it might not put new dollars in the pocket of Americans,  it certainly would help home owners and business or commercial property owners financially, lowering property taxes, through tax relief hopefully similar to the California  1978 Proposition 13 and 1986 Proposition 58 property tax relief measures.  These are perfect models to mirror,  in every state and county throughout the United States of America.

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