Trust and Estate Loans for Irrevocable Trusts: A California Proposition 19 Solution

An irrevocable trust is a powerful estate planning tool designed to protect and preserve assets. Once created, the trust’s assets are permanently transferred out of the grantor’s ownership and control. A designated trustee then assumes responsibility for managing the trust on behalf of its beneficiaries. Because the grantor relinquishes all authority over the trust, making changes or dissolving it is extremely difficult.

Due to the complex nature of asset ownership in irrevocable trusts, most banks and traditional lenders will not lend directly to one. However, True Point Lending specializes in providing loans to irrevocable trusts, helping clients navigate this often-challenging landscape.

Unlocking Property Tax Savings with Proposition 19

Thanks to California Proposition 19, you may be able to preserve a parent’s low property tax base on an inherited home. But when that home is held in a trust—and especially when there are multiple child beneficiaries—the California Board of Equalization often requires an equal distribution of trust assets to qualify. This typically necessitates a third-party loan to satisfy the distribution requirement without triggering a reassessment.

That’s where True Point Lending steps in. We are California’s leading provider of third-party loans to irrevocable trusts, offering the expertise and speed needed to meet Proposition 19 requirements. On average, our clients save over $6,300 annually in property taxes.

Why True Estate Loans?

Most lenders require that a property be removed from an irrevocable trust before a loan can be made—making it nearly impossible to qualify for Prop 19 benefits. True Point Lending does not require the property to be taken out of trust. We work directly with trustees, beneficiaries, and their legal counsel to ensure the goals of the trust are met in full compliance with Proposition 19.

We can fund a trust loan in as little as 7 days after receiving the required documentation from the trustee or attorney. Our loans come with no prepayment penalties and no minimum interest requirements, giving beneficiaries the flexibility to refinance or pay off the loan at any time without additional cost.

If you need assistance from a trust and estate attorney in your area, we can refer you to professionals experienced in Proposition 19 compliance. For complex property tax matters, we can also connect you with a California Property Tax Consultant who brings over 20 years of experience working within a County Tax Assessor’s Office.