Daly City Irrevocable Trust Loan

North Coast Financial provided a $815,000 irrevocable trust loan in Daly City, California (San Mateo County). A beneficiary buyout loan was needed in order to equalize the distribution of the trust’s assets among three beneficiaries. One beneficiary wanted to keep the property while the other two wanted their inheritance in cash.

North Coast Financial made a loan directly to the irrevocable trust which allowed the beneficiary to apply for Prop 19 with the county in order to prevent a property tax reassessment. Once the property was transferred from the trust to the individual, the individual was able to refinance the short-term trust loan into a long-term traditional loan. The loan to value was approximately 65%.