Family Bank · Crown jewel of the Zentru protocol

Lend to your family at the IRS rate.
From your own policy.

Turn the cash value of a trust-owned life insurance policy into a private bank. Issue §7872-compliant promissory notes, collect interest from heirs, and let the death benefit refill the vault — all under a West Virginia §44D silent trust.

The crown-jewel flow

Six steps from policy to paid loan.

  1. 01

    Fund a trust-owned policy

    Your WV §44D Irrevocable Community Trust owns a permanent life insurance policy. Premiums build cash value tax-deferred inside the trust.

    Cash value · MEC-aware

  2. 02

    Originate at the AFR

    Pick a borrower (beneficiary, extended family, trust-owned LLC), set the term, and Zentru pulls the current Applicable Federal Rate so the note can never be below-market under §7872.

    AFR auto-pulled monthly

  3. 03

    Pass the gates

    KYC, OFAC, MEC headroom, LTV, source-of-funds, fiduciary findings — every loan must clear a hard gate report before a dollar moves.

    Trustee-signed gate report

  4. 04

    Generate the §7872 note

    A multi-page PDF promissory note with full amortization, default & acceleration clauses, governing law, and a notary acknowledgment block — issued in one click.

    PDF + canonical text + SHA-256

  5. 05

    E-sign or remote-notarize

    Borrower signs via E-SIGN / WV UETA acceptance link, or you escalate to Remote Online Notarization (BlueNotary or OneNotary) for higher-stakes loans.

    RON · sandbox or live

  6. 06

    Service & anchor

    Track payments, snapshot arrears, generate 1099-INT records, and anchor every material event to Stellar — your tamper-evident audit chain.

    Stellar memo per event

Compliance, not vibes

Every loan ships with the receipts.

Below-market loan attestation

IRC §7872

Every note records the AFR snapshot used at origination. If the stated rate equals or exceeds the published AFR for that term, the loan is not a below-market loan and no imputed interest income arises.

Fiduciary findings on file

WV §44D-8 et seq.

The trustee documents prudent-investor analysis, conflict disclosure, best-interest rationale, and rate determination before each origination. Findings are hash-chained for tamper evidence.

Electronic acceptance

E-SIGN · WV UETA §39A-1-1

Borrower e-signature has the same legal force as a handwritten signature. We capture IP hash, user-agent, and timestamp, and anchor the acceptance to the Stellar audit chain.

Remote Online Notarization

WV §39-4-1 et seq.

When a loan calls for a notarized instrument, the same PDF is handed off to a commissioned RON notary (BlueNotary / OneNotary) with credential analysis and KBA recorded on the certificate.

MEC & LTV guardrails

IRC §7702A · prudent-investor

Loans cannot exceed available cash-value LTV thresholds and cannot push the policy into Modified Endowment Contract status. Both checks are hard gates, not warnings.

Tax reporting at year-end

IRS 1099-INT

For each calendar year, Zentru produces an informational 1099-INT worksheet per loan summing interest payments. The trustee files the official form via their tax channel.

Zentru is software, not a law or accounting firm. Family Bank originations require attorney review where mandated and a CPA's sign-off for tax positions.

Your policy is already a bank.
Operate it like one.

Spin up a trust, fund a policy, then originate loans with full promissory notes, RON notarization, and Stellar-anchored audit history — typically in under an hour.

NO LEGAL ADVICE. Zentru is a document assistant and software tool-kit under W. Va. Code §30-2-4. We are not a law firm and do not provide legal or tax advice. Generated documents must be reviewed by a WV-licensed attorney before they carry legal effect. Consult a licensed attorney and CPA before relying on any output of this platform.