As we all know, real estate tax assessments are derived from  the actual value of  the property in question. And the value of assets in total are always a part of the calculation of taxable assets. 

Property Tax Consultants Are Not All Equal

Naturally, property taxes are always in compliance with the tax rates that have been established in the jurisdiction where property is located.  Tax assessments of personal property, such as equipment or vehicles of transport, are typically based on the value of these assets.  Property tax consultants focus mainly on management of property taxes and personal property taxes.

There are different types of property tax consultants.   Some are “valuation consultants” who are seasoned in the art of property appraisal; whose expertise includes dolling out invaluable opinions on company property. 

On the other hand, “strategy consultants” provide various ways to  work with a trust lender when buying out siblings’ property shares through Prop 19 (formerly Prop 58) in concert with an irrevocable trust loan, to reduce property taxes… Providing advice to families on how to keep parents property taxes when beneficiaries are inheriting through a CA property tax transfer – in other words inheriting a home and thus inheriting property taxes without triggering crippling property reassessment. Tax breaks under Proposition 19, left over from the wildly popular Proposition 58 & Prop 193, still enable heirs or beneficiaries to keep a low property tax base through a parent-to-child property tax transfer or parent-to-child exclusion.

Certainly, all property tax consultants provide accurate advice on inheriting through a CA property tax transfer; on compliance matters; and on crucial document filings.  They compile research and data; prep document filings for appropriate jurisdictions;  and take care of negotiations and appeals with County Property Tax Assessors,  plus verify and conclude payments for clients. 

Borrowing from a Trust Lender in Conjunction with Prop 19

“We let beneficiaries, clients, know that Proposition 19 tax benefit entitles children of parents leaving them property to preserve the low Proposition 13 maximum 2% tax base. A California property tax transfer.  However, a lot of people don’t fully understand that you have to apply for the benefit. It’s not automatic…”

A California Property Tax Consultant also explains how his firm directs clients to a reliable trust lender for funding, in conjunction with Proposition 19 [formerly Proposition 58], with which to be able to buyout siblings  who are looking to sell off their property shares:

“We basically introduce the trust lender, for example Commercial Loan Corporation, as a private money lender that loans to irrevocable trusts, that applies for and works in tandem with California Proposition 58… for beneficiaries who are looking to sell their real property shares – for the purpose of facilitating “non pro-rata distribution”… So every heir gets an equal share of the entire overall estate – however, not necessarily of every asset.“

Trust Lender Solutions VS Institutional Lending

The Property Tax Consultant continues… “If there is a family that goes to a conventional, pricey lender like Wells Fargo for instance – they will always require adult children, beneficiaries that want to sell an inherited property, to ‘go off-title’, and that always triggers present-day tax reassessment. And that spells an expensive 66.66% tax hike!  If the family in question uses the Commercial Loan Corp, cLoanc.com, a company we have been using for years… the loan they provide is to a trust, and not to beneficiaries; so there is no title, and no crippling 66.66% property tax reassessment…

For example, there might be three siblings… beneficiaries – and a house to inherit.  And this is always important to remember.  If you’re one out of the three siblings that wants to keep the inherited house,  you are definitely  looking at a 66.66% property value tax reassessment – if you’re operating without a loan to a trust, or you’re using your own cash; or getting money from a  very pricey institutional lender – typically with multiple restrictions and extremely strict terms…

Using Commercial Loan Corporation…  Their loans to trusts give my clients several invaluable benefits. Their terms can be a lot more flexible than an institutional lender like Wells Fargo or Bank of America.  Also, Commercial Loan Corp is self funded, and that’s basically why they can extend easier terms to clients.“

Compliance Issues With Trust Loans Under Prop 19

“…Compliance for both commercial and residential property owners is far less strict.  Commercial Loan Corp doesn’t charge any fees up-front, that’s another great benefit. Plus, they don’t require paying interest on their trust loan in advance…

…Not only that, there is never a “due-on-sale” clause… that requires the mortgage to be repaid in full when sold; or that all or some of the interest owed must be paid up-front to secure the mortgage. No “alienation clause”… in the event of a property transfer, stating that the borrower has to pay back the mortgage in full before the borrower can transfer the property to another person. There is none of that.”

Nothing is simple… However property tax consultants tend to make it look simple; And deliver ahead of schedule, typically under projecting results while in reality usually exceeding expectations.