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