How to use this calculator
When several heirs inherit a California home, a beneficiary buyout lets one heir keep it while the others are paid their shares in cash, so the home does not have to be sold. The usual structure is a loan to the trust or estate, not to the heir: North Coast Financial lends to the trust or estate, secured by the home, the successor trustee or executor pays the departing heirs from the loan proceeds, and the home goes to the heir who stays, subject to the loan. In probate, the executor pays the departing heirs, and the court's order of distribution gives the home to the child who stays. This calculator estimates how much the trust or estate would need to borrow, the origination fees, the monthly payment on a 30-year amortization at North Coast Financial's current rate range, and whether the home's equity supports the loan.
Enter the property's current fair market value, the number of co-heirs, your ownership share, the existing mortgage balance (if any), and the loan-to-value ratio you want to borrow at. The calculator will show you the buyout amount, the maximum loan available, and your estimated monthly carrying cost.
If you also want to keep a parent's low property tax base under Prop 19, the structure matters. BOE staff guidance (advisory, not binding on assessors) has treated a loan to the trust or estate, with the home distributed to the child who will live there, as a non-pro rata distribution that can keep the parent-child exclusion. A child who buys siblings' shares directly, including with personal savings, is treated as buying from siblings, and those shares are reassessed. This is general information, not legal or tax advice. Confirm the structure with your estate attorney and the county assessor.
Enter Your Numbers
First lien. Payments are calculated on a 30-year amortization, with the remaining balance due at the end of the term. Taxes and insurance not included.
These are estimates based on the numbers you entered. Actual terms depend on property condition, title, trust structure, and other factors. Call us to discuss your specific situation.
Call 760-722-2991 to Discuss Your BuyoutWhat to do with these results
If the maximum loan shown covers the buyout amount you need, a beneficiary buyout loan is likely feasible for your situation. The next step is a conversation with North Coast Financial to review the property and the trust or estate structure in more detail.
If there is a gap between the maximum loan and the buyout amount, you have a few options: use other trust or estate assets to make up the difference, negotiate a lower buyout price with co-heirs, or reconsider the target loan-to-value ratio. If a child adds personal cash to buy a sibling's share, that share is treated as a purchase from a sibling and is reassessed for property tax. Properties with high equity relative to the buyout amount needed are the strongest candidates for buyout financing.
North Coast Financial has funded beneficiary buyout loans throughout California since 1981. We understand trust and estate structures, we work with attorneys, and we move fast. Most loans fund in about 7 days once the file is complete. Minimum loan amount is $30,000. Rates from 9.95% to 10.5%, origination 1.25 to 1.95 points, no prepayment penalty, no appraisal fee, no lender document fees.