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

California Transfer Parents Property Taxes To A Child

All things considered, there is no good reason residential, commercial and industrial property owners in every state in the United States  shouldn’t have property tax relief, modeled after California tax relief.  And not wind up in a nightmare with the tax people as they did in California. with widows  and elderly veterans and retirees living off fixed incomes being evicted from their homes on a regular basis… prior to 1978.  

This is really where the major problem is with many middle class estates, along with estate taxes often enough. Without property tax benefits, as California has had since 1978, so many beneficiaries in so many different estate, inheriting property from parents, simply can’t afford the upkeep and property taxes on their inherited home, and frequently are forced to sell their parents’ property. Often against their will.

There is a lot of talk among real estate attorneys and property tax advisors in states other than California about adopting some sort of property tax shelter to help middle class Americans in a genuine fashion, long-term.  Instead of consistently bleeding the general public dry year after year, decade after decade… while multi-millionaires and billionaires pay less and less taxes by raising the national debt by a trillion or two.  Especially during so-called conservative administrations, which generally lean towards assisting the wealthy with tax cuts   while ignoring tax relief needs of the middle class and working classes. Moreover,  particularly in the midst of a global Pandemic, where we have millions our of work, no federal leadership, and 30 or so states in the Midwest and Deep South in deep trouble with Coronavirus health and economic issues piling up, with no end in sight.  What better time than now to pass national property tax relief, benefiting all states.

To out it bluntly, it’s time that the middle class have their day, and get to enjoy genuine property tax relief to free up some more cash so they can enjoy their lives a bit more, with a little less financial stress. However, the trick is to enlist the interest of the public itself, as well as certain name brand  politicians, which would, if they had some intelligence and common sense, endear them to their constituents forever.

If, by any chance you reside in California, and you happen to be a beneficiary inheriting property from your parents, consider yourself to be very lucky. Instead of buckling under to family conflicts revolving around property issues, you’d be able to buyout siblings’ property shares, while retaining a low Proposition 13 protected base property tax rate – plus always  take advantage, anywhere in the state, of your right to avoid property tax reassessment; to transfer parents property taxes, and keep parents property taxes when inheriting property taxes.

This is why so many property tax advisors and real estate lawyers in various locations believe every single state should have a property tax measure similar to CA Proposition 13, Proposition 58 & Prop 193.  The California model is a perfect prototype to mirror for effective, seamless property tax breaks;  including the right to transfer parents property taxes, inheriting property taxes and the ability to keep parents property taxes for all property tax transfer scenarios involving parent to child transfer or parent to child exclusion from present day property tax rates…  involving beneficiaries of family trusts – most importantly, avoiding property tax reassessment.  To mirror Proposition 58 type of benefits, states without property tax relief would need to also adopt the ability to help beneficiaries buy out sibling property – as realtors call it, “transfer of property between siblings” or “sibling to sibling property transfer”, or buying out siblings’ share of a house.  And beneficiaries everywhere, if they are aware of it, rarely disagree.

Beneficiaries, as well as residential, industrial and commercial property owners in every state in America need to research these forms of property tax relief at resource blogs like “Property Tax Transfer”;  as well as  Websites that focus on California Proposition 58, on the property tax transfer process, and on how trust loans from trust lenders work, to help beneficiaries buy out sibling property, from start to finish… outlining how the unique combination of a trust loan with Proposition 58 serves to equalize the  distribution  of  cash for trust beneficiaries… at Websites like “Trust & Estate Loans”… 

Or perhaps at a well known, premium trust lender’s Website that delves into the actual nuts & bolts of the Proposition 58 / trust lending process, for example at the popular, first-class Commercial Loan Corp. Website; which is, arguably, the most visited Website of it’s kind in this specific lending category.

This gives beneficiaries enough information to successfully avoid estate conflicts between siblings; with some beneficiaries insisting on selling inherited property, and some wanting to keep their inherited property, at a low long-term property tax base. 

>> Click Here to go to Part Three…

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

California Proposition 58 Property Tax Transfer

Considering every state in America, if we were to project into the future and take into account all the ways we could avoid wasting money as a  result of inheriting  property from our parents… If you were expecting property as an inheritance – what would you do to make sure you were inheriting a home you could afford to keep? 

Nothing comes to mind?

What if every state in the union embraced the same sort of property tax breaks that California has employed since 1978… when Proposition 13 was voted into law so every residential, industrial and commercial   property owner would be able to avoid property tax reassessment. 

Subsequently, CA Proposition 58 was passed in 1986, enabling the transfer of property between siblings, making it possible to buyout your siblings’ property shares, plus insuring that you keep parents property taxes, basically forever – maintaining a low Proposition 13 guaranteed property tax base, capped at  a 2% maximum rate – all with the help of a loan to an irrevocable trust. 

Sounds simple, however it’s not quite as simple as it sounds. You need a reliable trust lender to help you, and you must qualify for all  the requirements necessary to be approved for Proposition 58 – in order to take advantage of it. 

Given the stunning unraveling of the job-based economy over the past several  months in the United States, due to all the lay-offs and so-called “furloughs” resulting from the Coronavirus crisis – as of August 2020 there are over 51 million lost jobs nation-wide, and more than 6.7 million unemployed in California alone… although what percentage of that is  temporary or permanent – we don’t yet know.

Frankly, the danger that the loss of millions of jobs poses to the country, not to mention the startling lack of engagement exhibited by the federal government, only exacerbates the health crisis.  Therefore, it’s clear to most of us that it’s high time lawmakers in Washington begin to put in place some permanent financial guardrails to help working class and middle class households lower expenses to some degree, to hopefully free up some spending cash for those that are out of work, with no resolution yet in sight. 

One such guardrail would be to free up additional personal spending cash by lowering property taxes on the middle class, whose spending habits, historically, keep the economy flowing.  It would make a great deal of sense right now, with no end to the Coronavirus challenges in sight, to not defer certain taxes – but to completely eliminate them! 

Most likely,  the least risky form of taxation to lower right now would be property taxes, as we have a successful property tax relief model in California to mirror in all the other states – preventing politicians from claiming that it probably wouldn’t work out, so why bother… why try.   Clearly, property  tax relief has worked out, and continues to be a successful system, in California. 

It would certainly help to prop up a flagging middle class besieged by an unprecedented Pandemic, and corresponding recession, to put in place residential and commercial property tax breaks similar to Californian property tax relief measures made possible by CA Proposition 13, enabling property owners, in the wake of  transfer of property measures, to avoid property tax reassessment every year… Making sure to transfer parents property taxes when  inheriting property and inheriting property taxes from parents… in other words inheriting property taxes that equal the lowest taxes your parents paid after 1978. 

Prior to 1978, property taxes were unpredictable and way too high in California… until trust  beneficiaries and heirs of estates were given “parent to child transfer”, or “parent to child exclusion” as real estate attorneys refer to it.  

Interestingly enough, since 1986 California trust loans have been used to resolve seemingly unsolvable inherited property conflicts between siblings; working alongside CA Proposition 58. Once approved, Prop 58 helps heirs to buyout sibling property through trust liquidity – siblings that are intent on selling their property shares… Generally called a beneficiary buyout of sibling property shares, sibling to sibling property transfer, or a transfer of property between siblings – siblings looking to sell their property shares wind up with more liquidity in trust than if they had sold out directly to an outside buyer.  Conversely, folks looking to keep their inherited property can avoid property tax reassessment at present day rates, going forward; retaining the same low property tax base their parents had. 

That’s the real genius of the property tax relief system in California… and the bottom line gift for middle class home owners and non-wealthy landlords in California – the legal right to avoid property tax reassessment. 

The magic of trust loans from trust lenders is that they make it possible, when working in concert with Proposition 58, to equalize cash to beneficiaries – in other words Prop 58 helps heirs to buyout sibling property – if they’re looking to sell an inherited property held up by beneficiaries of the same trust that are looking to keep the same inherited home and/or land…

For once, this would force estate property conflicts to end up as win-win scenarios for heirs of estates or trust beneficiaries in states other than California.  And we’re talking about beneficiaries who generally do not get along terribly well, as is illustrated by the frequently hard-nosed conflicts associated with their inherited property issues… where one or two want to keep their inherited home…  while several wish to sell… One wants to evaluate the property at one amount, the others at a different amount. Many families, typically the siblings, just can’t agree on anything.

And yet other families agree on everything in these estate or inherited property matters…. So you just never know.  However, typically there are some problematic conflicts to address.  And that’s where a trust lender tends to come into the picture – as we have said, to “equalize cash” for  those who wish to sell, while setting  a low base tax rate for siblings who are set on keeping the home inherited from beloved parents. 

>> Click Here to go to Part Two…

PART TWO: The CA Proposition 15 Split-Roll “Trojan Horse” Commercial Property Tax is Coming Up for a Vote!

2020 California Proposition 15

Gifting & Inheriting Property: Property Tax Relief Basics

Gifting your primary house, or secondary inherited property to your adult children – is it worth it?  We imagine for many it is, otherwise why would they do it?  And for others, well… what can you say, it’s simply a matter of subjective opinion.  And let’s never  forget that under Proposition 13 in California you can get the same low tax base benefits applied to your first primary residence inheritance to a secondary inherited property.  So there are built in benefits. 

Also, there are emotional reasons not just financial ones involved in all this…  It’s a real gift of love that often leads to an even closer relationship. And your offspring should realize that, and most probably do. In simple terms, it may be a principal residence, and that type of transfer may actually cause future tax appreciation of the value of that home, as a taxable item, when it might otherwise have avoided property tax reassessment if the property had remained in the decedent’s name with Proposition 13 transfer of property tax relief benefits. 

Nationwide Property Tax Relief Urgently Needed for Residential & Commercial Property Owners in a Severe, Pandemic Economy

This is the biggest problem for most beneficiaries, middle class  property owners and elderly home owners – i.e., property taxes; transfer taxes; etc.  This often forces folks to sell a beloved inherited property, as they simply can’t afford to pay the taxes on it every year, deal with utilities, upkeep, repairs, and so on.

We should all address the fact that, especially now, in the midst of an unprecedented Pandemic, with literally tens of millions of Americans out of work or  under-employed – with over 12 million people staring down the dark tunnel of foreclosure or eviction – every state in the union should be adopting, without delay, the same sort of property tax relief as California’s 1978 Proposition 13, as well as other critical property tax relief measures such as CA Proposition 58 property tax transfer benefits, voted into law in 1986.

At the risk of stating the obvious, it’s worth noting that these tax relief measures have become life-savers to property owners, as well as renters who enjoy lower rentals due to the ability their landlords have to avoid property tax reassessment.  We’re all aware of what things were like pre-1978, before Proposition 13 came about and began preventing the frequent foreclosures of the 1970’s, where we saw numerous elderly widows with fixed incomes being thrown out of their homes, literally onto the street, because they could not afford to pay egregiously high, unpredictable property taxes.

In fact, most middle class home owners at that time had trouble paying unusually high tax rates, and lived year to year with the shadow of the California ‘property tax guillotine’ looming over their heads.  In fact that is exactly what the situation looks like in many states now,  or in many expensive counties.  This is where the major problem is with most middle class estates, not with estate planning. Without property tax benefits, as in California, many beneficiaries inheriting property from parents simply can’t afford the upkeep and property taxes on an inherited home, and frequently are forced to sell their parents’ property right away. Often against their will.
 
We hear a great deal of chatter lately, among realtors and real estate attorneys in various states, about “adopting a property tax shelter” for all property tax transfers, when inheriting a home from a parent.  Or we can simply call it “property tax relief” similar to property tax benefits that are taken for granted in California; with Proposition 13, or during a property tax transfer or a sibling property share buyout; utilizing CA Proposition 58, and a trust loan – keeping property taxes much lower on a permanent basis, avoiding property tax reassessment basically forever.  

Beneficiaries who are inheriting property from a parent or step-parent  in any of the 58 counties in the state of California are generally protected from property tax reassessment. And have a low tax base to look forward to, not to exceed 2% as stipulated by California Proposition 13.

And let’s not forget having the ability to make good use of a loan to an irrevocable trust, working in concert with Proposition 58, something a lot of people don’t know anything about. With trust loans from trust lenders being used to equalize cash to beneficiaries looking to sell an inherited property held up by beneficiaries of the same trust, looking to keep the same inherited home and/or land… For once making scenarios like that a win-win situation for everyone associated with an estate or trust, with a trust loan from a reliable trust lender. Instead of experiencing problematic family conflicts revolving around property issues. 

Residential & Business Property Tax Breaks in All States

Beneficiaries and home owners, as well as commercial and industrial property owners of all types, all across America, should be getting familiar with the way they implement property tax breaks in California. How they handle having the right to keep parents property taxes, to transfer parents property taxes, when inheriting property taxes. If, by any chance you reside in California, and you happen to be a beneficiary inheriting property from your parents, consider yourself very lucky. This is why so many real estate lawyers in various locations these days strongly believe every state should have a property tax measure similar to Proposition 13 transfer of property and inheriting property taxes; and Proposition 58 property transfer tax benefits. 

So if every state in the United States had a Proposition 13 and Prop 58 type of property tax relief system… and could make good use of ancillary tax breaks such as buying out inherited property shares from siblings intent on selling out — through a loan to a trust, from a specialty trust lender; using a trust loan in conjunction with Proposition 58 to permanently solidify a low property tax base, made possible by Proposition 13; given the legal right (in every state, not just California)  to avoid property tax reassessment.

Therefore, every property owner in America dealing with inherited property in trust or in an estate; perhaps also addressing sibling conflicts revolving around who wants to keep inherited property versus who insists on selling, and who can buyout whom, using a trust loan, in order to keep inherited property in the family; avoiding property tax reassessment basically forever.  Everyone with these types of sibling property conflicts or property tax issues of any kind, even just the ability to pay them – would walk away happy… and for once all estate or trust family related conflicts would wind up as a win-win inheritance scenario, every single time these property tax measures were employed.

>> Click Here for 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 TWO: Coronavirus Crisis is the Last Thing the California Real Estate Market Needed!

California Real Estate

As the Coronavirus crisis worsens and deepens month after month,   the death toll rises, crunching up the economy in every state, like a giant invisible lawn mower, paralyzing the real estate market, and shredding other businesses, throughout California and the entire country… With millions of Americans filing for unemployment every week – property owners in every state in America should be looking closely at how property tax relief is accomplished in California, inheriting property taxes from parents; how these types of tax breaks would benefit folks in other states.

At least in California there is a cure for conflicts between sibling  beneficiaries – usually revolving around who wants to sell an inherited home, versus who insists on retaining that property, given emotional and sentimental ties.  And these sibling conflicts can get very, very ugly. 

However, when you mix these “sell or keep” inherited property issues with normal up & down sales cycles in the real estate market as a whole… with shrinkage in home sales being blamed on seniors retaining property, supposedly “all elderly and wealthy”,  and with Proposition 13 taking the lion’s share of the blame – with the focus on avoiding property tax reassessment, taking advantage of parent-to-child transfer of property, inheriting property taxes from parents; or parent-to-child exclusion as realtors refer to it (meaning exclusion from present-day tax rates).  Clearly, these illogical allegations do not add up. 

It’s clear to most Californians (with the exception of the folks that write for the San Francisco Chronicle and the Los Angeles Times; and the special interest politicians that they support) that the 1978 Howard Jarvis supported CA Proposition 13 property tax relief serves the wealthy and middle class alike – and might be just the thing American home owners need right now, floundering in the throes of an unprecedented Pandemic, to take some financial pressure off most Americans, who obviously are not wealthy.

Property tax relief would be especially important and helpful to  residents of other states who have been furloughed at zero, or 50%, salary due to the Pandemic… Or who are unemployed, yet still must pay property taxes on time, with no payment plan allowed, under duress, without a Proposition 13 or Prop 58 type of tax break to help them out in a time of great need.

In states other than California, home owners whose property is not free and clear, who are paying off a mortgage right now plus paying off high property taxes – are particularly in severe trouble as the virus rages across America and the world.  With a lack of federal leadership in the United States causing even greater economic difficulties  and personal tragedy.   

Naturally, from the point of view of California home owners and business owners, keeping their property tax rate at a low and  predictable 2% maximum cap is as American as apply pie – and most property owners questioned will agree this type of tax relief should be passed into law in every single state in America.  No questions asked. 

Moreover, it’s obvious to most Californians that renters in California also benefit from Proposition 13… And agree that if the Split-Roll property tax were passed  in California and business property owners including landlords lost their property tax breaks  afforded by Proposition 13, we’d see rents go sky-high all across the state, from San Diego and Los Angeles, up to San Francisco and Santa Barbara.

And despite what various  newspapers in California say in Editorials about Proposition 13 – this is not a rich person’s tax shelter.  It’s strictly an “everybody” tax relief measure. 1978 Proposition 13 (not to be confused with the “coincidental” Proposition 13 Split-Roll business and commercial property tax) holds property taxes down every year to a 2% cap, thankfully, or  a great deal of Californians would not be able to afford to hold on to inherited property from parents. 

Now that the Covid 19 virus crisis is on the rise again, then off, then on again… unpredictable and burning through the job based economy like a giant Los Angeles brush fire gone out of control – it’s obvious that every state in the  union needs to have property tax breaks like the CA Proposition 13 parent-to-child exclusion, as realtors call it… as well as property tax transfer tax-relief made possible by the 1986 California Proposition 58 tax shelter, where  beneficiaries of trusts and heirs of estates inheriting property taxes from parents will often opt for a loan to an irrevocable trust to buyout siblings who wish to sell off their inherited property shares, and end up paying low taxes on property tax transfer from parents – having the right to transfer parents property taxes to themselves, upon inheriting property taxes from their Mom or Dad. With that incredible ability, basically forever, to keep on paying low yearly property taxes for as long as they retain that inherited property, as well as a secondary inherited property, if that property is inherited from a parent as well. 

What other state makes property tax relief like this possible?  In a word… none.  Why is property tax relief available in California, and  yet nowhere else in America?  This is exactly what Americans need right now, in a recession that looks more and more like a depression that is a direct byproduct of a Pandemic no one was prepared for, and that leaders were late in the game to address.

>> Click Here for Part Three…