Loan Types

Trust Loans Probate Loans Beneficiary Buyout Loans Irrevocable Trust Loans Estate Debt Payoff Loans Pre-Sale Improvement Loans Administration Expense Loans

Situations

Beneficiary Buyouts Sibling Buyouts Prop 19 Guide Prop 19 Equalization Loans Partition Actions Successor Trustee Loans Keep Parents' Low Tax Base

Resources

How Trust Loans Work How Probate Loans Work Rates and Fees Funding Timeline Document Checklist Questions to Ask a Lender Loan vs. Inheritance Advance Buyout Calculator Loan Cost Estimator Prop 19 Savings Calculator

Glossary

Fiduciary Irrevocable Trust Step-Up in Basis Proposition 19 Successor Trustee Executor View all 20 glossary terms →

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California Trust & Probate Glossary

Plain-language definitions of the legal and financial terms you'll encounter during trust administration, probate, and inherited property decisions in California.

B

Beneficiary vs. Heir ›

Beneficiary and heir describe different relationships to a California estate. The distinction affects who receives trust assets, who has standing in probate, and how loans are structured.

Bridge Loan ›

A bridge loan provides short-term financing between two arrangements. Many California trust and probate loans function as bridge loans, covering costs until a property sells or an estate closes.

D

Due-on-Sale Clause ›

A due-on-sale clause lets a lender demand full repayment when property transfers to a new owner. Understanding how this clause interacts with trust and probate transfers is important for trustees.

E

An executor is the person named in a California will to administer the estate. Executors often seek probate loans to pay debts and administration expenses before the estate closes.

F

A fiduciary must act in another person's best interest. Trustees and executors are fiduciaries whose borrowing decisions are subject to heightened legal scrutiny in California.

H

Hard Money Loan ›

A hard money loan is secured by real estate and funded by private lenders rather than banks. Trust and probate loans are a specialized form of hard money lending in California.

I

Inheritance Advance ›

An inheritance advance sells future inheritance rights for immediate cash. Learn the key differences between an advance and a trust or probate loan before deciding which fits your situation.

Irrevocable Trust ›

An irrevocable trust cannot be modified or revoked after creation. Specialty lenders can still make loans against irrevocable trust-owned property in California under the right circumstances.

L

Letters of Administration ›

Letters of Administration authorize a California probate administrator to manage an estate when there is no will or no named executor. Lenders require this document before funding probate loans.

Letters Testamentary ›

Letters Testamentary are a California Superior Court document authorizing an executor to act on behalf of an estate. This document is required by lenders when funding estate loans.

N

Non-Pro Rata Distribution ›

A non-pro rata distribution lets California trust beneficiaries receive different assets rather than equal shares of every asset. Buyout loans often make this arrangement possible when siblings disagree.

P

Parent-Child Exclusion ›

California's parent-child exclusion prevents property tax reassessment when real estate transfers between parents and children, subject to Proposition 19 limits introduced in 2021.

Partition Action ›

A California partition action forces the sale or division of co-owned real estate. A beneficiary buyout loan can often resolve a co-ownership dispute and avoid the cost of litigation.

Probate Administrator ›

A California probate administrator manages an estate when there is no will or no named executor. Like executors, administrators can use probate loans to cover estate costs during administration.

Proposition 19 ›

California Proposition 19 changed property tax basis transfer rules for inherited real estate. Understanding Prop 19 is essential for trustees and heirs deciding what to do with inherited property.

R

Revocable Living Trust ›

A revocable living trust can be amended during the grantor's lifetime. At death it becomes irrevocable, and the successor trustee takes over. Most California trust loans involve revocable trusts that have become irrevocable.

S

Step-Up in Basis ›

Step-up in basis resets an inherited asset's cost basis to fair market value at death, potentially eliminating capital gains tax on appreciation that occurred during the decedent's lifetime.

Successor Trustee ›

A successor trustee takes over trust administration after the original trustee dies or becomes incapacitated. Successor trustees have the authority to borrow against trust property in California.

T

Trust Certification ›

A California trust certification under Probate Code Section 18100.5 lets lenders verify trustee authority without seeing the full trust document. This is a standard requirement for trust loans.

Trust Protector ›

A trust protector holds specific powers over a California trust, often including approval authority over major decisions. Some trust loans require trust protector consent before funding.

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