Trust Loans in California

California Hard Money Direct is able to make a trust loan directly to the trust. As such, a trust loan is one of the many reasons people turn to private lenders.

A trust is a fiduciary relationship in which one party, known as a trustor, gives another party, the trustee, the right to hold title to property or assets for the benefit of a third party, the beneficiary.

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What is a Trust?

The arrangement of a trust allows a company or individual to own assets on behalf of a group of people, family or individual. In all three instances, they would be known as the beneficiaries of the trust. Even though the assets are on behalf of the beneficiaries they are always controlled by a trustee. The trustee can be either a person or a company. The rules the trustee must follow are set out at the beginning and governed by a trust deed. These rules also clearly define how profit is distributed to the beneficiaries.

What is the Definition of a Trust Loan?

A trust loan is a technical type of inheritance loan generally only made by a trust loan company or private money lenders. Requesting such a loan through conventional lenders such as banks and credit unions would typically be futile. This type of loan becomes too complicated for conventional lenders because the borrower does not currently have their name on the title of the real estate. California Hard Money Direct is able to make a trust loan directly to the trust. As such, a trust loan is one of the many reasons people turn to private lenders.


The first step is to have our title division review the trust agreement. It is imperative the agreement allows the beneficiary (or trustee) to take a loan utilizing real estate owned by the trust as collateral. It is not at all uncommon for the trust to allow the trustee to be granted a trust loan for the benefit of the trust or its beneficiaries. Either the trustee or the successor trustee are the individuals who have been granted authority to borrow against the trust as security for the loan.

Trust Loans Are Popular With Siblings and Heirs

Trust loans are frequently used by beneficiaries (siblings, heirs) who wish to divide an interest in trust-owned real estate. Often one of the beneficiaries wants to maintain ownership of the real estate while other beneficiaries want cash in exchange for their interest in the property. Trust lending solves the problem by providing fast and flexible funding for a trust beneficiary buyout.


It is also common when one of the beneficiaries has a desire to continue ownership of the real estate in contrast with other beneficiaries seeking cash in exchange for their percentage of ownership of the property. Trust lending offers a solution by offering quick and versatile funding for a trust beneficiary buyout. 


Trust loans are most commonly used by siblings seeking a way to divide interest in real estate owned in the name of a trust. California Hard Money Direct can only process a loan such as this in 7-9 days. Once the loan is complete the monthly loan payments are solely the responsibility of the beneficiary buying the property from the trust.

Direct Lender Specializing in Lending to Trusts & Estates

California Hard Money Direct is a direct lender specializing in lending to Trusts & Estates along with beneficiaries and trustees. Our goal is to help clients meet the California Proposition 58 equal distribution requirements and avoiding reassessment on an inherited home. We are able to assist as long as trust owns California real estate. In every instance the property is offered as collateral for the loan. We can assist regardless of whether the property is a revocable (family/living) or irrevocable trusts. California Hard Money Direct also provides probate and estate loans.


Our loan provides the cash needed to allow each beneficiary or heir to receive an equal portion of the assets of a trust or estate inheritance. This allows a beneficiary to keep a family home, while others receive cash. Most traditional lenders are unwilling to lend to a trust. Aside from the lack of desire, most do not have the knowledge or understanding of all the nuances required in properly structuring loans to irrevocable trusts. That is what we specialize in and our loans are California Proposition 58 compliant. When structured properly out clients can save the maximum allowed per year year in property taxes by taking advantage of Proposition 58 and preserving a parents low Proposition 13 property tax base.

Families Utilize Trusts for Tax Benefits and More

Families looking for ways to protect their children often set things up in a trust. It allows for a smoother transition once the family member passes on. But it is impossible to know which sibling may want to own the property versus preferring to simply cash out. Not to worry because a trust beneficiary buyout can be quick and painless with the assistance of a trust loan. The trust loan itself provides the trust with the necessary capital needed to buy out beneficiaries. It is an easy solution for beneficiaries with a desire to liquidate their interests in real estate. 

At the point the selling beneficiaries have received their funds the transfer title to the beneficiary buying the property from the trust can take place. It is at this point the beneficiary who now officially owns the property can seek and get a conventional loan. It is at this point the hard money loan can be taken out by a traditional bank refinance.


One must not lose sight of the many valuable tax advantages because the trust is considered a third-party loan. The laws are ever-changing so we advise you seek guidance from your CPA. This will virtually ensure you will always be provided the up-to-the-minute advantages and changes to the laws. The most common as we write this article has to do with preventing property tax reassessments.


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There are other options to consider such as lending to an irrevocable trust as well as a living trust. As with any legal matter, specific protocol must be followed. The successor trustee must first approve of the actual loan and be in the position to fully complete a loan process. The successor trustee will be mandated to sign and review specific disclosures and loan documents of the irrevocable trust loan. When lending to a living trust (revocable trust) the current trustee will need to handle this transaction.



Family trust loans grant permission for a trustee to access a mortgage secured by real estate within a family trust. Should the need arise whereby the trustee or successor trustee or beneficiaries must raise capital, options to borrow from the family trust do exist. The net result is they can utilize the capital in order to divide ownership in a property or facilitate other obligations of the trust.


The proper structuring of property 58 loans is essential. Lawyers typically advise clients to procure a third party loan (prop 58 loans) to facilitate the buyout of another beneficiary’s interest in real estate owned by a trust. Loans for prop 58 are made directly to the trust. Escrow will directly pay off the beneficiaries who sold their interest in the real estate. Title can only be transferred from the parents trust directly to the child who maintains ownership of the property once the other beneficiaries have been paid and I have zero interest in the real estate.


Proposition 193 in a similar fashion to proposition 58 excludes a property tax reassessment on the transfer of real estate from grandparents to grandchildren. When the grandparents of the grandchildren are deceased as of the date of the real property transfer the transfer is eligible for prop 193.


Proposition 13 was passed in California on June 6th, 1978 and remains today one of the most popular propositions ever passed. It limits property tax increases on any given California property to no more than 2%. This applies only if the property is not sold or transferred. Propositions are voted in and out. They do not last forever. It is best to consult with an attorney or CPA in order to determine feasibility. The next hurdle is to make sure how you have structured everything to best capitalize on all the benefits.

Trust Loans in California

Looking for a private lender to provide a loan directly to a trust? We can help.

At California Hard Money Direct, we specialize in lending to trusts & estates along with beneficiaries and trustees in California.

Trust Loan Program
7-9 days
$50– $20,000,000
1-5 years
1sts, 2nds
1sts – Up to 65% of current value – 2nds – Up to 65% CLTV
Same day pre-approval available
Residential (single family, multi-family), commercial
Call for fees
Please contact us for information on current rates and points

Why More Borrowers Choose California Hard Money Direct for Trust Loans?

Very satisfied borrowers, brokers, and realtors. More 5-star reviews than virtually every other trust loan lender in California.

There’s a reason why we’re a top trust loan lender in California and numerous clients repeatedly turn to us for their hard money needs. Our Google reviews speak for themselves.

Many years of experience in trust lending. A proven track record of delivering results. A long history of keeping promises and funding on time.

Work with a hard money lender that has the knowledge, resources, and experience to get your deals closed quickly. Cut out the middleman and partner with a direct hard money lender.

Fast pre-approvals and funding & very low rates and loan fees.

Same day pre-approvals. Most trust loans can be funded in approximately 7-9 days.

Our interest rates and fees for hard money loans are among the lowest in the industry. Call now and compare for yourself.

Recently Funded Trust Loans in California

Read what other borrowers have to say about working with our California trust loan lenders

Lending throughout California, a reliable trust loan lender

Vladimir Brodskiy

I have just closed 4th loan with Judy. She was able to arrange this one with the money that came from the same investor who did my 3rd loan. I refinanced my previous purchase and money was wired to the investor’s bank account. It stayed on her account for a couple days and was wired to the new escrow to fund my new purchase. Wow, Judy is so efficient! Because of her outstanding professionalism people like me can win bidding wars in very competitive markets like San Francisco and at the same time the investors’ money is working non-stop earning very good return. It is a win-win situation. Thank you, Judy for making this process so smooth. Can’t wait to do my next loan.

Gilbert Richards

I have been doing hard money since I was licensed in 1997. And in the past few years I have dealt with several hard money groups who did not meet the expectations they created. California Hard Money Direct was an outstanding team. That was not only fast but upfront. I shopped my client with three other investors over two months. This group was able to come through quickly. If you are looking for hard money in California call Judy and her team first, you will not be disappointed.

Wendy O.

I am an investor. I’ve been working with Judy for years. I’ve probably funded about 20 loans with her. I can count on her to be professional, honest, smart and efficient. It is a pleasure to work with her.

Fast approvals on trust loans with California Hard Money Direct