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Trust and Estate Solutions
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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
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TITLE REPORTS: The Basics
By Jonathan Brooks, President, First Probate Loans
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In my 29 years working with fiduciaries and their attorneys, borrowing on behalf of trusts and estates is no simple matter, with complex probate, national and local real property finance lending laws. The intricacies of dealing with title companies and the three types of title reports are key to the process:
Property Profiles
that a title company provides typically disclose property characteristics, current vesting, a tax report, sale comparables and the deeds of record (grant, quit and trust). Each property has three ways of identification, all of which appear in a complete property profile: common address, legal description and assessor's parcel number. However, it is important to not rely on a property profile as a guarantee or warranty that the title is as represented. This is crucial information for the fiduciary and their attorneys to understand before preparing a plan for a client.
Preliminary Title Reports
will disclose any involuntary liens that have attached to title under the current, or prior, ownership. As with a property profile, a preliminary title report is not a guarantee, warranty or representation that the title is subject to the liens reported or that the report includes all the liens that might affect title to the property.
Title Insurance Policies
are issued after completion of a transaction (and the deed/s have been recorded in the local county assessor's office). This policy is a guarantee, warranty or representation of the title vesting (subject to policy limitations), and that the title is subject to the liens reported - or that the policy includes all the liens that might affect title to the property. In limited situations, probate financing companies that specialize in challenging title issues may be able to proceed without a title policy.
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QUICK RESOURCE GUIDE for Fiduciaries and their Attorneys including Practical Tips for
Non Pro-Rata Distributions to Avoid the Property Tax Reassessment Event
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In my business of arranging loans to trusts and estates, I work directly with fiduciaries and their attorneys. As this is the first newsletter for 2019, and as I embark on my 29th year working in and serving the probate and trust community, this resource guide will assist you to quickly find what you're looking for:
- To find out what is necessary to obtain a probate loan, go here
- To find out what is necessary to obtain a trust loan, go here
- To learn more about funding Non Pro-Rata Distributions to Avoid the Property Tax Reassessment Event, go here
- To learn more about Paying Off Reverse Mortgages, go here
- To learn more about Loans to Upgrade Trust and Estate Real Property Prior to Sale, go here
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ADDITIONAL RESOURCE GUIDE for Fiduciaries and their Attorneys
considering Non Pro-Rata Distributions to Avoid the Property Tax Reassessment Event
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An additional resource is Matthew Burke. He was Senior Tax Counsel with the California State Board of Equalization, where he advised taxpayers, their representatives, county assessor staff and the Board on the property tax consequences of various transactions, and prepared formal advisory opinion letters, many of which became published guidance. His principal area of expertise is Proposition 13 change in ownership, with a particular emphasis on legal entity transactions, transfers via trust, parent-child and grandparent-grandchild transfers, and complex lease transactions. Please call Mr. Burke directly at (310) 882-1134 or by email: [email protected]
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STRAIGHT NOTE LOAN PRODUCT
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First Probate Loans introduced a new loan product a few years ago to provide liquidity to upgrade, fix, enhance and/or clean up homes, to allow the family to obtain the best sale value. Visit our website for more information
These loans can be first trust deeds or in junior position (2nd, 3rd, or even 4th position) and be used for all loan purposes to benefit an estate. The terms of the loan can be tailored to the specific estate's needs. For example, if the estate can make payments, a simple amortizing or partially amortizing loan may be the best value. Or, should the trust or estate be unable to make payments a straight note may be the best option. A straight note has no payments; and, all principal and interest payments are due at the maturity date of the promissory note. Loan terms are usually 12-24 months; interest rates vary depending on location, lien position, loan to value, and the ability to make payments.
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THE 24th ANNUAL PFAC 2019
EDUCATIONAL CONFERENCE
We are proud to again participate as a Bronze Sponsor of The 24th Annual P
FAC 2019 Educational Conference, this year in Disneyland (Anaheim), California May 1-4, 2019.
To obtain more information about the 2019 PFAC Conference news via email,
click here.
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Have Questions?
We're happy to help answer any questions you have.
JONATHAN BROOKS
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