PART FOUR: Interview With Michael Wyatt, Real Estate Tax Advisory Firm

California Property Tax Advice

California Property Tax Advice

California Property Tax Advice and Consultation

Our conversation with CEO Michael Wyatt of Michael Wyatt Consulting, a Real Property & Property Tax Advisory firm based in Corona, CA – continues…

Property Tax Transfer:  And what about your clients, Mr. Wyatt?  Do they understand and go along freely with your plan, avoiding property tax reassessment with Proposition 13, and property tax transfer, with the right to transfer parents property taxes, and other benefits from Proposition 58… the whole nine yards?

Michael Wyatt:  Most of my clients own real estate….  To inherit a house from their parents, my clients would have to pay reassessed taxes on their own home and the inherited property from their parents.  Most people understand that with Proposition 13 they (A) save their inherited home, and (B) get a significant tax break on their primary residence…  Without these tax breaks most middle class people,  and elderly folks living on a fixed, generally modest  income – would, in most cases, be forced to sell their inherited property.

Property Tax Transfer:  With so many positive factors generated by Proposition 13 and Proposition 58 – why would anyone go against these tax breaks that positively impact the middle class, the upper classes, blue collar folks – you name it!  Who are all those people over-using the media to endlessly whine about  Prop 13 adversely affecting ownership of real estate in California;  causing shrinkage of the real estate market.  They appear to be endlessly  pushing back against property tax breaks that are so incredibly popular, so beloved by all Californians… that even renters seem to get the fact that keeping landlords’ property taxes low also keeps their rent low…

Michael Wyatt:  Politicians with special interests clearly want to destroy Proposition 13, and ultimately Proposition 58 and 193 – for their political interests, claiming under-funding and over-spending    supposedly brought about by property tax breaks.

Property Tax Transfer: Sir, what in fact is actually causing all that under-funding and over-spending? Folks would like to know this!

Michael Wyatt: In fact, what is actually causing these under-funding issues is lavish over-spending on overly generous local government pension plans and salary increases; funding local and state raises and bonuses… over-spending on overly robust health coverage plans, vacation benefits, and retirement-pension plans.  As well as over-spending on special interest projects and massive special interest public works, don’t forget that! 

Property Tax Transfer:  And killing the California real estate market…  Is there any validity to this at all?

Michael Wyatt:  None.

Property Tax Transfer:  Any truth to all that verbiage about Prop 13, and home owners’ ability to transfer parents property taxes, adversely affecting ownership of real estate in California…?

Michael Wyatt:  Zero.

Property Tax Transfer:  (Laughter) Zero!

Michael Wyatt:  Zero! Proposition 13 is not adversely affecting ownership of real estate… Not killing the real estate market in California.  It helps the  real estate market, not hurts it!  Did those opponents and critics of Prop 13 ever hear about the building of new homes and condos in Los Angeles… in the Bay area… in a thousand other locations in California?  There is no truth to that argument whatsoever.  Zero truth to that position.

Property Tax Transfer: Zero truth… That’s incredible.

Michael Wyatt:  Zero!!

Property Tax Transfer: Thank you sir, for a terrific interview. And eye opening analysis of real property inheritance, Prop 13, Prop 58 –  trust lenders; and the art of trust loans throughout the state of California.

Michael Wyatt:  Thank you, sir.  It’s been a pleasure.

Looking at a few cases the Michael Wyatt Consulting Firm has worked recently, gives us a clear overall idea of how the Proposition 13 low property tax base and Proposition 58 property tax transfer and trust loans profoundly affect both home owners and business owners in the state of California – such as:

The Los Angeles County Power Center case, which reduced the Tax Assessor’s value by nearly $22 million, resulting in $232,000 in total refunds. The firm’s Orange County Self-Storage Facility case reduced over $18 million in Assessor’s value, resulting in $185,500 in total refunds. The firm’s work for a Los Angeles movie theater reduced the local Tax Assessor’s assessment by over $12 Million, resulting in a total refund of over $129,000.

The firm’s Orange County Retail Center case lowered the local Assessor’s valuation by $11 Million – generating over $113,000 in total refunds. Just a few examples, like these, show us the enormous potential beneficiaries inheriting California property from parents actually have, in terms of saving  a great deal of money every year in property taxes, due to Prop 13 – as well as the stable  Proposition 58 driven ability to equalize cash payments to co-beneficiaries during real property buyouts, with trust loans. Plus many other lesser known but meaningful benefits. 

When beneficiaries have an opportunity to avoid property tax reassessment, while inheriting property taxes during property tax transfer – typically as middle class or upper middle class California based residential and commercial or industrial property owners – and one has the ability keep parents property taxes – one can transfer parents property taxes over to inherited property; which features parent to child transfer, commonly known as parent to child exclusion. Hence, one retains parents (Proposition 58) or grandparents (Proposition 193) low tax base during property tax transfer… basically forever.

The fact that our property taxes then remain at the low California  Proposition 13 tax base that our parents had generally makes a significant difference to our life.  Financial stress from unpredictable, and often unaffordable, tax rates are lifted off our back.  Tax rates that would be in the tens of thousands of dollars every year, were it not for CA Proposition 13 tax relief, and Proposition 58 property tax  transfer benefits.   

For assistance with California property tax issues or to take advantage of California Proposition 58 or Proposition 19, Michael Wyatt can be contacted at (951) 264-6152. You can reach the Commercial Loan Corporation at (877) 756-4454 to look into a trust loan; or simply go to with questions on a loan to a trust, irrevocable trust, or a property in probate plus numerous other related issues.

PART TWO: California Proposition 58 and Loans to Trusts ~ Featuring Noted Trust Loan Expert Tanis Alonso from Commercial Loan Corp.

Loans to Irrevocable Trusts for Proposition 58

California Loans to Irrevocable Trusts for Proposition 58 Property Tax Transfers

Our Interview with noted Commercial Loan Corp. Trust Loan and Proposition 58 specialist Tanis Alonso continues…

Property Tax Transfer:  Tanis, let me ask you…  Beneficiaries that call your company, desperate to keep parents property taxes;  for any solution to their property transfer / Proposition 58 issue – is it a safe bet to assume that 99% of the time there are elements that come up again and again?

Tanis Alonso (Commercial Loan Corporation): Well, that’s true, to a point. With beneficiaries that call us, with a trust or estate situation, there is always real property being inherited, going to one or several beneficiaries… and little, if any, cash – and each family always has different dynamics. There are always differences, as regards the people and details involved. But, the one constant you can be sure of is that there is always someone who wants to sell… and always someone who wants to keep the property they are inheriting… dead set against selling.

Property Tax Transfer: And at the end of the tunnel, is it safe to assume that with your company it’s generally a win-win equation, for everyone involved. Everyone involved, more or less, get what they want, right?

Tanis Alonso (Commercial Loan Corporation): That’s right.  99% of the time. The beneficiary, or beneficiaries, that want cash from the sale of the property that they’re inheriting, get the cash they were looking for, from the trust loan…

Property Tax Transfer: And the beneficiary or beneficiaries that want to keep the house, get to keep that house, and keep parents property taxes…

Tanis Alonso (Commercial Loan Corporation): Yes! And let me say that, typically, this is a really, really big win for them – as the siblings that wanted to sell are usually very vocal, and very aggressive about their desire to do so! That beneficiary that wants to keep that property, that is also able to get the other siblings a large amount of cash for their shares in the inherited real estate – while still being able to keep the home they’re so attached to, and keep parents property taxes; keeping parents property tax rate.  This would be practically impossible, were it not for our trust loan. And there’s your win-win equation!

Property Tax Transfer: And what about the cost factor? Costs involved in the equation… How does everyone benefit on that level, getting cash to the beneficiaries that wanted cash from a house sale? Versus coming up with property buyout cash themselves…
Tanis Alonso (Commercial Loan Corporation): OK, so cost involved, selling versus keeping inherited property. I’ll try to keep the equation simple. Costs associated with this property funding process through a trust loan, paying for everything, including beneficiary property shares buyout, taxes, etc. is, on average, 3.5% – So by someone keeping the family property everyone will receive more money than if they were to sell the property at approximately 6.5% in costs. The average trust receives $45,716 more to distribute than if they were to sell the property to some random buyer.  Each beneficiary on average is receiving $16,652 more by someone keeping the property, instead of selling it. And our average annual tax savings is $6,043. We have already saved a combined amount just shy of 1 million dollars for our clients on property taxes. That is a significant benefit for all beneficiaries when someone keeps the property instead of selling it! 

PropertyTax Transfer: So you’re saying those savings would have been completely lost, per beneficiary, if they had sold out to a regular buyer…

Tanis Alonso (Commercial Loan Corporation): That’s right. For example, say it’s you and your sister.  A major conflict. You want to keep the house you’re all inheriting from your parents, plus keep parents property taxes. Why should I let my sister sell? The solution there is because you are going to get more cash in your hands than if you were to sell the property! That’s the bottom line. A trust loan transaction takes 7-10 business days whereas selling will take a few months. Everyone receives more money, more rapidly, then if they were to sell the property on the open market. Everyone benefits from this… it’s win-win all the way around.

PropertyTaxTransfer: So you let your sister sell, so everyone wins – is what you’re saying.

Tanis Alonso: Of course! Let her sell, let her get her way – and you end up getting your way… you get what you wanted, to keep your house with everyone paid off and happy. No more conflict. On a $500,000 property – do you want to spend 6.5% to sell that property, with a realtor, or 3.5% through our trust loan, in keeping with the Proposition 58 tax system? Which number would you want to give away, 6.5% or 3.5%? 

Property Tax Transfer: Naturally. So the long range picture looks like increases in taxes as well, so that’s not as affordable either.

Tanis Alonso (Commercial Loan Corporation): Absolutely right. In certain cases a property tax reassessment can add an extra $700 to $1000 per month to your property taxes. That’s an extra $1,000 per month – not per year! Month after month. That is affordability vs not affordability to many. 

Property Tax Transfer: Going through the Proposition 58 tax system, with the trust loan paying everyone off…  What would property taxes look like going down that road?

Tanis Alonso (Commercial Loan Corporation): OK so the question is, “why do I need a trust loan to buy out beneficiaries who want to sell our inherited house?”  The answer is you can still keep the house you’re inheriting, and not spend any of your own money in the process.  The importance of the trust loan is that you can buy out your siblings and still keep parents property taxes. You keep 100% of the low Proposition 13 property tax base that was originally paid by your parents.  If you were to use your own money to buy out your siblings, the State Board of Equalization would see that as a sibling buying out a sibling – and that would definitely trigger a property tax reassessment. Naturally, the result of that would be higher taxes.  So you need the trust loan to buy out your siblings in order to take advantage of Proposition 58, and keep the low property tax base. 

Property Tax Transfer: Most people don’t have that kind of cash on hand nor do they want to use all of their cash for this just to buy out beneficiaries in an estate setting. Especially if the numbers go higher…

Tanis Alonso (Commercial Loan Corporation):  Beneficiaries who want to keep their inherited property still put a lot more money in their pocket, still save a lot more,  by not using their own funds…  by buying out beneficiaries that want to sell by going the trust loan route.  Staying within the discounted Proposition 13 tax base, being able to keep parents property taxes … taking advantage of the  Proposition 58 property tax system, or tax shelter.  Using this tax shelter  that we looked at before, if you recall – would be around $1,200 per year on a million dollar property.  Saving thousands of dollars annually on property taxes by taking advantage of Proposition 58; keeping their parents low property tax base. 

Property Tax Transfer: Yes, the difference in the numbers are stunning.

Tanis Alonso (Commercial Loan Corporation):  Yes it is.  So if you use your own money to buy out your siblings you will trigger a reassessment… if that was reassessed normally, without doing the property transfer and beneficiary payoff with our trust loan – you’d be looking at an $11,000 tax hit per year on the same million dollar property!  If reassessed at the current, present day, base rate – that tax hit goes up 10 times. A significant difference in cash back in your pocket after it’s all done and said. Trust loans are a huge benefit for all of these families and that’s how we’re able to really help people in a significant way.  

Property Tax Transfer: The amount of money saved really is remarkable.  And I can see that you genuinely enjoy helping your clients save a great deal of money with these trust loans. Making great use of the low Proposition 13 base rate, and the Proposition 58 property transfer tax shelter… The formula works!

Tanis Alonso: Absolutely. And helping people in this way is what it’s all about! That entire viewpoint is the basis for this whole company, from the top down – starting with the CEO, who is a truly terrific guy, who genuinely loves helping people, with money, memories, and time. And you can’t replace memories and time!

Property Tax Transfer:  You can’t replace memories and time… Very well put!  That is a concept to remember.

Tanis Alonso: It is so important to remember, when you truly care about what happens to the people you’re helping.

Property Tax Transfer: Very true.  Your clients are lucky to have you folks working for them.  Thanks so much for speaking with us today.

Tanis Alonso: Thank you.  It was a great pleasure chatting with you.