FAQ

California Proposition 19, also known as the Home Protection for Seniors, Severely Disabled, Families, and Victims of Wildfire or Natural Disasters Act. Prop 19 was approved by California voters on November 3, 2020. California Proposition 19 took effect on February 16, 2021. Proposition 19 modified California Proposition 58 by requiring that the child or children use the residence as their principal residence in order to avoid property tax reassessment. Additionally Prop 19 put a cap of $1,000,000 on the amount of property value that can be excluded from reassessment.

Trustees, executors, administrators, private fiduciaries, and estate and trust attorneys routinely encounter problems when administering cash-poor trusts, estates or probates after someone passes away. These problems include how to equalize and distribute assets between children so that everyone gets an equal share; how to pay expenses when there is little or no cash in the estate; how to pay off a reverse mortgage that a parent or grandparent has taken out on the home; or how to structure the trust or estate administration so that one beneficiary receives real property while ensuring that the other beneficiaries receive an equal share. Often, there is too little cash in the estate to achieve these goals, and the trustee or executor is forced to sell real property assets in the course of the trust or estate administration in order to raise the money needed. Evoque Solutions provides private 3rd party loans to create necessary liquidity to retain the applicable property tax exemptions, and can do so in a fraction of the time it takes to prep and sell a property.

Trustees (with the power to encumber trust property), Administrators of estates (with Letters of Administration and Full/Limited Authority), Fiduciaries, and Conservators. Please note, restrictions do apply.

In most cases, and with all the supporting documentation, Evoque Solutions can fund a loan in as little as 5-7 business days. Loans may require longer if complicated by courts, attorney notices, liens or difficult people.

Often, beneficiaries have the funds to pay the other beneficiaries for their share of the real property in the trust or lend money to the trust necessary to make an equal distribution of assets. Per BOE guidelines, “a loan cannot be made by any of the beneficiaries of the real property to the trust in order to equalize the trust interests. Such loan would be considered payment for the other beneficiaries’ interests in the real property resulting in a transfer between beneficiaries rather than a transfer from parent to child, which would disqualify the transfer from the parent-child exclusion.” http://www.boe.ca.gov/proptaxes/pdf/lta08018.pdf

Evoque Solutions provides private third party loans ranging from $30K – $2M, 1 – 3-year terms, no prepayment penalties and no minimum months of interest. We work to customize specific solutions that best fit the needs of the particular situation.

Step 1: Determine who will retain property. Oftentimes one or more beneficiary wishes to retain the property and its tax base.
Step 2: Determine loan amount. The property value, other assets/cash in the trust or estate, and the number of beneficiaries is used to determine the liquidity needs for equalization.
Step 3: Evoque Solutions provides a loan to the trust. Evoque Solutions provides private capital directly to the trust to create the liquidity needed for equalization, a necessary step to avoid reassessment under Proposition 58.
Step 4: Equalization and distribution. Cash or property are distributed as mutually agreed upon by the beneficiaries.
Step 5: Change of ownership. Change of ownership and exclusion from reassessment are filed.
Step 6: Trust loan is repaid. The beneficiary retaining the property either repays the private loan with their own funds or secures conventional financing to repay the trust loan.

In most cases limited documentation is required, which varies slightly on a case-by-case basis. Please contact us to discuss your specific matter, and we can provide a detailed list of items needed.

The market for equity-based trust and estate loans is NOT the same as bank loans and is very specialized. On average, expect a 4-6 % premium versus conventional bank loan rates.

Banks and credit unions offer little help in this regard, whether out of risk-averse policies or simple lack of knowledge regarding trust or estate administration.

No, we follow the BOE guidelines and lend directly to the Trust, Estate or Probate, and use the subject property as collateral.

No, however, credit scores may have an impact on a beneficiary’s ability to refinance out of our private loan once the property is transferred out of the Trust, Estate or Probate into their name.

We make equity-based loans on California real estate, up to half of current appraised value, to the estate or trust as an “entity,” WITHOUT regard to credit of person(s)-in-charge.

Evoque Solutions does not provide inheritance advances.

A reverse mortgage payoff is usually required during difficult times. In most cases, it involves a single beneficiary or multiple beneficiaries of an elderly parent’s estate after they pass on. When the executor of the estate begins the process of sorting through paperwork and getting all affairs in order, some may discover a reverse mortgage was taken against the property and that the full repayment of the loan is required within a fairly short time frame. Typically, there is a two to six-month grace period. Reverse mortgage payoff loans are private loans used to pay off reverse mortgage loans. These loans come from private equity firms like Evoque Solutions to provide flexibility for the heir or responsible party to manage the property and assets without being forced to sell them in order to meet the expenses of the estate.

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