The family loan, on the record.

When a trust lends to a beneficiary or a parent lends to a child, the paper trail matters precisely because the parties are close. Termn runs the note from signature to confirmed disbursement, then keeps it on both ledgers until it is repaid, forgiven, or offset.

Start this loan free What it costs

The other side never needs an account · No card to start · Termn computes no interest and gives no tax advice

Origination, with nothing taken on faith

A cooperative borrower doesn’t lower the evidence bar. The disbursement is proved the same way a stranger’s wire would be.

  1. 01

    Sign

    Borrower and lender sign the promissory note, the trust signing as an entity with the trustee’s name and capacity recorded distinctly.

  2. 02

    Fund

    The disbursement moves from the lender’s bank to the borrower’s and is reconciled on the borrower’s side against receiving-bank evidence.

  3. 03

    Record

    The origination closes as a settlement record: the signed note plus the confirmed disbursement. The note itself lives on.

No borrower accounts · Termn never holds funds · Interest is the parties’ own figure, recorded as they wrote it

Outstanding, for as long as it takes

A demand note has no schedule: one payoff, someday, when the trustee calls the note or the estate settles. Termn records it as outstanding in both ledgers, the trust’s receivable and the borrower’s payable, and leaves it there until someone declares the trigger with evidence. Termn never detects or characterizes the event; the people involved declare it.

The outcomeWhat movesWhat’s recorded
Repaid One payoff, borrower or estate to the trust, at the figure the trustee or executor enters from the note’s own terms. The money reconciled against that figure; the note closed as repaid, with the evidence attached.
Forgiven Nothing. The recorded waiver, which is the common estate-planning outcome. Gift and estate tax consequences are counsel’s, and the record says so.
Offset Nothing. The estate nets it out. Satisfaction with a recorded basis: offset against the borrower’s distribution.

You always know where the note stands: signed, funded, outstanding, then demand or death declared, then repaid, forgiven, or offset.

Set it up from one email

“I’m lending Ben Cho, ben@example.com, $5,000 on a demand note. Note attached.” Send that to start@termn.ai and the draft comes back on the same thread — lender, borrower, principal, note. Nothing reaches the borrower until you review it and send it from the app, signed in.

Open the draft with the blanks marked, or read how starting by email works.

What the borrower sees

A loan inside a family survives on both sides seeing the same facts. Here is the borrower’s half.

  1. 01

    One email, one link

    An email sent through Termn in your name carries one secure link to the agreement. It opens in the browser: no account to create, no app to install, nothing to pay.

  2. 02

    The note, then the money in the open

    The note is on the page, ready to sign. The disbursement is tracked where both sides can see it, and the note stays visibly outstanding until it is repaid, forgiven, or offset. Nobody is left wondering what the record says, at Thanksgiving or in probate.

  3. 03

    Confirmed in writing

    Every act is confirmed by email, to them and to you. If they hesitate, Termn does the reminding for seven days, so the awkward follow-up is never yours.

No account and nothing to install · They never pay Termn anything unless you assign the activation to them · A lost email is re-sent from /my, any time

One workspace, however long the note runs

Your first workspace is free; after that it’s $149 once. Either way the note it tracks can stay outstanding for a decade. There is no renewal to lapse and no meter running while it waits.

Lending from a trust? The note lives naturally alongside trust funding: same contacts, one ledger. See all pricing.

Common questions

Why does a family loan need this much record-keeping?
Because the parties are close. A loan between a trust and a family member is exactly the paper an auditor, the IRS, or a future executor will want to see documented: a signed note, a confirmed disbursement, and a recorded outcome.
What is a demand note, and how does Termn track it?
A note with no installment schedule: one lump-sum payoff when the trustee calls it or the estate settles. Termn records it as outstanding in both parties’ ledgers, indefinitely, until the trigger is declared and resolved.
Does Termn calculate the interest or the payoff?
No, never on this product. The payoff figure comes from the note’s own terms, entered by the trustee or executor with counsel. Termn records the number and reconciles the money against it.
What if the loan is forgiven instead of repaid?
Forgiveness is a recorded outcome, common in estate planning. Termn records the waiver and closes the loan. The gift and estate tax consequences are counsel’s territory.
Does Termn collect the debt?
No. Nothing here accelerates, adjudicates, or collects. A declared demand surfaces the work; the people involved resolve it, and Termn keeps the record.

Before you decide, how this actually works

Plain explanations of the transaction itself, free and open, with the statutes and rules they rest on named and linked.

  1. How to document a loan inside a family

    The paperwork is not distrust. It is what keeps it a loan.

    3 minute read

  2. What a demand note is, and how it ends

    No schedule, no maturity date, and no reason it should be forgotten.

    3 minute read

Everything else is in the learning center.

Finish what the agreement started

Your first workspace is free: one live workspace, unlimited agreements inside it, no card.

Start this loan free

Rather talk it through first? Contact us at sales@termn.ai.