Private Real
Estate Lending ·
Since 2005
Private Real
Estate Lending ·
Since 2005
Private Real
Estate Lending ·
Since 2005
Private Real
Estate Lending ·
Since 2005
HCS Equity provides private irrevocable trust loans in California for successor trustees administering trust-owned real estate. Our loans are secured by California real estate held in irrevocable trusts and are designed for situations where traditional lenders cannot provide financing.
One of the most common reasons for an irrevocable trust loan is to facilitate a sibling buyout and take advantage of the Prop 19/58 Parent to Child Exclusion from Reassessment.
In many trust situations, one beneficiary wants to keep the inherited property while the other beneficiaries prefer to receive cash. If the trust does not have enough liquid assets to equalize the distribution, a trust loan can create the cash needed to buy out the other beneficiaries in compliance with the Board of Equalization's rules under Prop 19/58.
The loan is made directly to the trust itself and secured by the trust-owned property. After the trust loan closes, the trustee can complete the agreed distribution of cash and property in accordance with the trust and the advice of legal counsel. The trust loan is then typically repaid through a refinance, beneficiary funds, or another approved repayment strategy.
Many families are surprised to learn that the financing is obtained by the trust itself rather than by the individual beneficiary who intends to retain the property. This structure helps create the liquidity needed for the trustee to complete the equalization and distribution process while maintaining the integrity of the trust administration.
Rather than one beneficiary purchasing the interests of the others directly with personal funds — which would be considered a "sibling to sibling" transfer — the loan creates liquidity within the trust so the successor trustee can complete the equalization and distribution in accordance with the trust documents and the advice of legal counsel.
Because every trust, family structure, and property ownership situation is different, trustees should always work closely with their trust attorney and tax professional when determining whether a Proposition 19 or Proposition 58 strategy is appropriate. HCS Equity works alongside these professionals by providing private trust financing specifically designed for California trust-owned real estate.
Irrevocable trust loans can provide short-term liquidity for a wide range of trust-owned real estate needs, including:
Preserving family real estate
Supporting Proposition 19 or Proposition 58 transfer strategies for sibling buyouts on inherited property
Paying property taxes, insurance, or existing debt service
Covering property maintenance or repair costs
Reimbursing family members who advanced funds during trust administration
Preparing a trust-owned property for sale
Paying legal or administrative expenses tied to the trust
HCS Equity provides practical private lending solutions for trustees and beneficiaries who need speed, flexibility, and certainty.
Unlike traditional mortgage lenders, HCS Equity understands the complexities involved when real estate is owned by an irrevocable trust. Our underwriting focuses on the trust-owned property and the overall transaction rather than requiring successor trustee/s to qualify for financing in their individual capacity. This allows trustees to obtain the capital needed to administer the trust efficiently while working alongside their legal and tax advisors.
With more than two decades of experience providing private real estate financing throughout California, HCS Equity has become a trusted lending resource for trust-owned real estate involving sibling buyouts, trust equalization, inherited property expenses, reverse mortgage payoffs, and other complex trust administration scenarios.
HCS Equity specializes in private irrevocable trust loans for sibling buyouts and trust equalizations, inherited property expenses, and short-term capital needs involving trust-owned real estate. As a direct private lender, HCS Equity uses its own capital and provides flexible underwriting.
Unlike conventional lenders, HCS Equity focuses specifically on California trust-owned real estate. Our team has extensive experience working alongside successor trustees, trust attorneys, professional fiduciaries, CPAs, and estate professionals to provide financing solutions tailored to California trust administrations. This specialized experience allows us to understand the unique timing requirements, documentation, and equalization strategies often involved when trust-owned real estate must be retained, distributed, or prepared for sale.
HCS Equity does not provide legal or tax advice. Trustees and beneficiaries should consult their attorney or tax professional regarding Proposition 19, Proposition 58, and property tax reassessment rules.
Whether referred to as a sibling buyout, parent-to-child transfer, trust equalization, or a Proposition 19 or Proposition 58 transfer strategy, these transactions generally follow the same process. HCS Equity provides financing to the trust, allowing the successor trustee to create the liquidity needed to complete the distribution of trust assets.
The beneficiaries decide who will retain the trust-owned property or whether the property will be sold.
The property value, available trust assets, number of beneficiaries, and equalization needs are reviewed to determine how much liquidity is needed.
HCS Equity reviews the trust-owned property, available equity, trust documents, loan purpose, and repayment plan.
If approved, HCS Equity provides a private loan to the trust itself secured by the trust-owned real estate. The loan creates the liquidity needed for the successor trustee to complete the buyout, and equal distribution of assets.
The successor trustee distributes cash and property in accordance with the trust documents and the advice of legal counsel. This may involve one beneficiary retaining the property while the remaining beneficiaries receive cash as part of the trust equalization process.
The trust loan is typically repaid through a refinance, beneficiary funds, or another approved repayment strategy, depending on the trust's distribution plan.
HCS Equity has funded trust loan scenarios across California involving sibling buyouts, trust equalization, property tax planning, and preparing trust-owned real estate for sale.
An irrevocable trust loan is private financing secured by trust owned real estate. The loan is made directly to the trust itself and signed for by the successor trustee.
Yes. An irrevocable trust can get a loan if it owns real estate, has sufficient equity, and the trust documents allow the trustee to borrow against trust assets.
Yes. Trust loans are commonly used when one beneficiary wants to keep a trust-owned property and other beneficiaries want to receive their share in cash.
A trust loan may help create the liquidity needed for equalization and distribution when beneficiaries are pursuing a Proposition 19 or Proposition 58-related transfer strategy. Trustees and beneficiaries should work with their attorney or tax professional to confirm eligibility and proper execution.
In most cases, HCS Equity does not require a personal guarantee or down payment. The loan is to the trust itself, and secured by the trust-owned real estate.
HCS Equity typically does not require the trustee to provide personal financial information when the loan is made to the trust and secured by trust-owned real estate. Requirements may vary by scenario.
No. HCS Equity does not charge prepayment penalties or require a minimum number of months of interest.
Funds are typically available within 7–10 business days, depending on the trust documents, title, property details, and overall complexity of the loan.
A trust loan is usually repaid through a refinance, sale of the property, beneficiary funds, or another approved exit strategy.
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