Estate & Trust Lending

Providing Capital to Retain Prop 13 Tax Base

Minimizing your tax burden plays a key role in building and keeping wealth over the long-term. King Harbor’s trust lending services reduces taxes on inherited real estate.

A loan to a trust allows a beneficiary to utilize California’s Proposition 58 and Proposition 193 to avoid a property tax reassessment. California real estate taxes are kept at a reasonable level by Proposition 13, which limits real estate tax increases to only 2% per year. Proposition 58 and Proposition 193 allow for this low tax basis to continue if the property is transferred from a parent or grandparent.

King Harbor Wealth Management through its exclusive relationship with Redondo Beach’s Pacific Crest Funding is one of the few firms in California that specializes in loans to trusts and estates. We can help any beneficiary that inherits their parent’s or grandparent’s home and wants to avoid a property tax assessment. Our partner’s at Pacific Crest have been in the lending business for over thirty years.

OUR PROCESS

Pacific Crest Funding is a direct lender and can close trust loans in as little as 7 days. All aspects of the trust loan are handled directly to ensure rapid response. There are no minimum or maximum loan amounts.

STEP 1

Decided Who Will Own Property

STEP 2

Determine Cash Needs of the Trust

STEP 3

Pacific Crest Funding Provides Trust Loan

STEP 4

Distribution of Trust to Beneficiaries

STEP 5

Change of Ownership Filed & Legacy Tax Basis Retained

STEP 6

Trust Repays Loan

RECENT LOANS

Lomita, California

Trust Loan Amount $318,000
Property Taxes at Time of Inheritance & After Trust Loan: $1,378 per year
Property Taxes without Proposition 58 Trust Loan: $12,125 per year
KHWM Trust Lending Tax Savings Per Year: $10,747 per year

Harbor City, California

Trust Loan Amount $470,000
Property Taxes at Time of Inheritance & After Trust Loan: $1,858 per year
Property Taxes without Proposition 58 Trust Loan: $9,775 per year
KHWM Trust Lending Tax Savings Per Year: $7,917 per year

Torrance, California

Trust Loan Amount $430,000
Property Taxes at Time of Inheritance & After Trust Loan: $1,368 per year
Property Taxes without Proposition 58 Trust Loan: $9,375 per year
KHWM Trust Lending Tax Savings Per Year: $8,007 per year