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 |
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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 |
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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 |
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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 |