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).  


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


Very truly yours,

Jonathan Brooks  



The Life of a Loan Broker
By N. Mitchell Feinstein, Esq.  
I write this article from my perspective of more than fifty years in the mortgage lending business, a perspective that seems to me as if I were staring down to the Colorado River from the rim of the Grand Canyon. It's been a long time baby.
I've operated in this milieu from the first day I practiced law, through the boom of the 70's, the Savings and Loan Collapse, the equity run up in the eighties, the subprime churn of the 90's into the 21st century, and the most recent crash and boom.
Through this all I've observed and participated in the survival skills of one of the most resilient of creatures, the Mortgage Broker.
I've seen the broker shed skins multiple times. In the 1960's and 1970's, I saw the brokers take advantage of the shortage of lenders in the inner city. When the federal government forced banks in the area and when other's saw profit there, the sneaky guys moved into funding larger loans by creating the multi lender transaction allowing them in the 70's and 80's to fund entrepreneurs betting on the rapid rise of real estate values in California.
I watched in amazement as they changed funding techniques creating pools, collateral debt, subordinated debt and other vehicles to fund the transactions.
But what I observed most of all is as these brokers switched from game to game, their focus was first on sales and second on performance. What I mean by this is that these types ran from product to product, copying any idea they could, often without understanding the full implication of their actions. They disregarded the fine points of new transaction in order to pursue pure profit.
Often their rapid changes brought mayhem to their borrowers and lenders.
But during this maelstrom it always appeared to me that those who had the longest experience served their clients the best.
In today's market the latest "deal of the day" for the past short burst was financing the business of financing house flips, much like the deals shown on HG TV. But as in the past, the market has become overcrowded and more importantly more efficient lenders have reduced the prices so the inefficient and hungry brokers can compete.
So what have they done? I have observed that once again the snakes have shed their skin and now put on the clothing of trust and probate experts. They try to gain market share by underselling the long time providers, but at what price? As before the new players concern is for sales in the short term, not long term reputation.
So using a new broker for a loan for an estate or trust, may save a few dollars, but is the risk worth it? The new players lack experience, often don't provide the level of service necessary for the benefit of the trust or estate and can make mistakes.
As always, it's better to deal with a known broker who has spent his entire career serving the probate community then betting on a snake with a new skin.
Parent to Child Transfer of Property with California Proposition 58
By Matthew Brooks
Preventing a property tax reassessment may save a beneficiary or heir thousands of dollars annually depending on the difference between the existing assessed value and the current reassessed property value. First Probate Loans is the originator of the property reassessment tax strategy loan and we are here to assist you and your clients to qualify for this exclusion.
California's Proposition 58 became effective on November 6, 1986.  With certain limitations, Prop 58 allows for the exclusion for reassessment of property taxes on transfers between parents and children. Proposition 58 is codified by section 63.1 of the Revenue and Taxation Code. In the State of California, real estate or real property is reassessed at market value if it is sold or transferred. Property taxes can sometimes increase dramatically as a result. If the sale or transfer is between a parent and their child, under limited circumstances, the property will not be reassessed if certain conditions are met and the proper application is filed in a appropriate amount of time. Proposition 58 allows the new property owner to avoid property tax increases when acquiring property from their parents. The new owner's taxes are instead calculated on the established Proposition 13 factored base year value, instead of the current market value when the property is acquired.
There are some limitations to Proposition 58. For instance, on non-primary residences transfers of the first $1 million of real property. The $1 million exclusion applies separately to each eligible transferor. These transfers may be the result of a sale, gift, or inheritance. A transfer via a trust also qualifies for this exclusion.
For California Proposition 58, there are limitations for who is eligible. Here are the existing guidelines. A "child" for purposes of Proposition 58 includes any child born of the parent(s), any stepchild while the relationship of stepparent and stepchild exists, any son-in-law or daughter-in-law of the parent(s), and any adopted child who was adopted before the age of 18. Spouses of eligible children are also eligible until divorce or, if terminated by death, until the remarriage of the surviving spouse, stepparent, or parent-in-law.

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