<div dir="ltr">I have a similar situation where an LLC member guaranteed a commercial loan, and the death of any guarantor constitutes default. (LLC is owned by H&W and both H & W guaranteed the loan). The client is in his 80s and is planning on purchasing life insurance to pay off the loan after he passes, and came to me to set up an ILIT... Any thoughts?<div><br></div><div>Thanks,</div><div><br></div><div>Jennifer</div></div><div id="DAB4FAD8-2DD7-40BB-A1B8-4E2AA1F9FDF2"><br>
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</table><a href="#DAB4FAD8-2DD7-40BB-A1B8-4E2AA1F9FDF2" width="1" height="1"></a></div><div class="gmail_extra"><br><div class="gmail_quote">On Tue, May 9, 2017 at 7:14 AM, Paul Grant <span dir="ltr"><<a href="mailto:paulnnepa@gmail.com" target="_blank">paulnnepa@gmail.com</a>></span> wrote:<br><blockquote class="gmail_quote" style="margin:0 0 0 .8ex;border-left:1px #ccc solid;padding-left:1ex"><div dir="ltr">A client passed away with a commercial building and there is a loan attached to it. The loan was taken in the name of the LLC and was not personally guaranteed by the decedent or the surviving spouse. The terms of the loan clearly state that the death of any member is a default.<div><br></div><div>Has anyone seen a commercial loan, if being timely paid, trigger the default provision and demand the loan to be paid in full at the death of a member? I have a hard time believing that they would recall the loan if it is currently paid, but sometimes commercial loans are a different creature and do things that make no sense.</div><div><br></div><div>The surviving spouse is living in terror that the bank is going to demand the loan to be paid and I have no experience in dealing with commercial loans to help calm her. Thoughts on commercial loans and any suggestions on the next step - I really don't want to be surprised.</div><div><br></div><div>Thanks!<br clear="all"><div><div class="m_-3872364682150027301gmail_signature" data-smartmail="gmail_signature"><br>Paul H. Grant - JD, LL.M<br><br>Planning with Purpose, Inc<br>Lynnwood, WA 98036<br><a href="tel:(425)%20939-9948" value="+14259399948" target="_blank">425-939-9948</a><br><a href="http://www.planningwithpurposeinc.com" target="_blank">www.planningwithpurposeinc.com</a><br><br>Estate Planning. Business Planning. Wealth Succession.<br><div style="display:inline"></div><div style="display:inline"></div><div style="display:inline"></div></div></div>
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