Trust and Estate Solutions
first PROBATE Loans
    

Hi, I'm Jonathan Brooks, the principal of First Probate. First Probate provides short term loans to fiduciaries - executors, administrators, trustees, conservators and guardians - who borrow on behalf of trusts and estates.  First Probate specializes in resolving challenging and difficult title problems associated with trusts and estates.    I have provided these services to the probate community for more than 20 years.

 

First Probate is happy to provide you with a complimentary property profile, recorded lien and last vesting deed, upon request (Send us an email).  

  

If you have any comments, simply hit REPLY and let me know.  If you have some information that you would like to communicate to the probate community, forward it to me for consideration. Lastly, if I haven't convinced you that my newsletter is worthwhile, just press "SafeUnsubscribe" below.

 

Here's hoping we continue to stay in touch and that we may be of service to you!

 

Very truly yours,

Jonathan Brooks  

 

 
  Practical Tips for Non Pro-Rata Distributions to Avoid the Property Tax Reassessment Event
In my business of arranging loans to trusts and estates, I often make loans in order to eliminate the Property Tax Reassessment Event when the transfer of real property is between parents and children or grandparents and grandchildren.

A common strategy to prevent a property tax reassessment event, and the resultant higher property tax, is for a third-party lender to loan money directly to a trust or estate prior to distribution, thus placing debt on the property to adjust the value of assets being distributed to beneficiaries. The per-year savings can be enormous.

After the loan transaction is complete, the next step is distribution (recording the Trust Transfer Deed to the children beneficiaries); and, filing the Preliminary Change of Ownership Report ("PCOR") along with a Claim for Reassessment Exclusion (either the Proposition 58 form or the Proposition 193 form).

The authority for this transaction is Revenue and Taxation Code 63.1 and is explained in the   California Trusts and Estates Quarterly, Volume 12, Issue 4, Winter 2007 (which can be accessed by clicking this link).

In my previous newsletter, I provided a few practical tips; here are some additional thoughts:
  • Use a lender that has experience making loans to fiduciaries and ask for references
  • Be certain the loan documents to secure the transaction contain the specific authority for the loan, in case of an Assessor audit
  • Ask for the lender's license (Nationwide Mortgage Licensing System & Registry "NMLS" Unique Identifier and California Bureau of Real Estate or California Department of Financial Institutions)
  • If any lender asks for personal information from the fiduciary the lender doesn't understand the transaction
  • If any lender wants to run the fiduciaries credit report, the lender doesn't understand the transaction
  • If any lender wants the fiduciaries (or any other person) to co-sign or guarantee the loan, that lender doesn't understand the transaction

 Professional Fiduciaries and     What They Offer
While arranging loans to fiduciaries of trusts and estates , I work with many professionals. As our population ages, more seniors (and their families) turn to professional fiduciaries to solve their personal and financial management issues.

Professional Fiduciaries have been around for a long time. Currently Professional Fiduciaries are monitored by the Professional Fiduciaries Bureau of the California Department of Consumer Affairs. The  Professional Fiduciaries of California (PFAC), is the industry membership group that provides basic and continuing education to Professional Fiduciaries.

The Professional Fiduciary Association of California ("PFAC") continues to rapidly grow and the 2017 PFAC Annual Conference is an effective tool for Attorneys to market to the ever-growing PFAC community; a vibrant, savvy group of professionals looking for other professionals to assist them in managing estates.
 
To receive 2017 PFAC Conference news via email, click here.

Have Questions?
We're happy to help answer any questions you have.

JONATHAN BROOKS
(818) 788-2308
www.firstprobateloans.com