# Limited partnership question **URL:** \ **Category:** In My Humble Opinion\ **Created:** [July 1, 2011, 8:29pm UTC](https://boards.straightdope.com/t/limited-partnership-question/587550 "2011-07-01T20:29:13Z")\ **Posts on this page:** 6\ **Page:** 1
**Author:** ![dauerbach](https://avatars.discourse-cdn.com/v4/letter/d/c2a13f/32.png) [@dauerbach](https://boards.straightdope.com/u/dauerbach)\ **Post date:** [July 1, 2011, 8:29pm UTC](https://boards.straightdope.com/t/limited-partnership-question/587550/1 "2011-07-01T20:29:13Z")
I am thinking of making an investment that will be structured as an LLP. I have to personally guarantee a fairly hefty loan. I have been told that my personal guarantee does not carry over to my estate if I die. I am just in the preliminary investigation phase. I will definitely hire an attorney to go over everything, just trying to decide now if I will even enter the phase where I will have to pay for advice. ---
**Author:** ![samclem](https://avatars.discourse-cdn.com/v4/letter/s/a9a28c/32.png) [@samclem](https://boards.straightdope.com/u/samclem)\ **Post date:** [July 1, 2011, 8:45pm UTC](https://boards.straightdope.com/t/limited-partnership-question/587550/2 "2011-07-01T20:45:28Z")
Since the OP is based on a real-life situation that probably involves legal advice, we’re better off in IMHO. Moved from General Questions. **samclem** , Moderator ---
**Author:** ![Fuzzy\_Dunlop](https://avatars.discourse-cdn.com/v4/letter/f/848f3c/32.png) [@Fuzzy\_Dunlop](https://boards.straightdope.com/u/Fuzzy_Dunlop)\ **Post date:** [July 1, 2011, 9:31pm UTC](https://boards.straightdope.com/t/limited-partnership-question/587550/3 "2011-07-01T21:31:11Z")
> [@dauerbach](#): > > I am thinking of making an investment that will be structured as an LLP. I have to personally guarantee a fairly hefty loan. I have been told that my personal guarantee does not carry over to my estate if I die. I am just in the preliminary investigation phase. I will definitely hire an attorney to go over everything, just trying to decide now if I will even enter the phase where I will have to pay for advice. Nobody, even if they want to stick their neck out, can give you any advice without seeing the language of the surety or personal guaranty. However in my experience personal guarantees on loans are clearly worded to be unconditional. Look for phrases like “binding on your heirs in the event of your death”. ---
**Author:** ![OldGuy](https://avatars.discourse-cdn.com/v4/letter/o/3bc359/32.png) [@OldGuy](https://boards.straightdope.com/u/OldGuy)\ **Post date:** [July 2, 2011, 4:17am UTC](https://boards.straightdope.com/t/limited-partnership-question/587550/4 "2011-07-02T04:17:04Z")
The whole idea of a limited partnership is that the limited partner(s) not be liable for more than their initial investment. This loan guarantee seems strange to me. ---
**Author:** ![Fuzzy\_Dunlop](https://avatars.discourse-cdn.com/v4/letter/f/848f3c/32.png) [@Fuzzy\_Dunlop](https://boards.straightdope.com/u/Fuzzy_Dunlop)\ **Post date:** [July 2, 2011, 8:16pm UTC](https://boards.straightdope.com/t/limited-partnership-question/587550/5 "2011-07-02T20:16:34Z")
> [@OldGuy](#): > > The whole idea of a limited partnership is that the limited partner(s) not be liable for more than their initial investment. This loan guarantee seems strange to me. The bank knows that the business structure would limit the liability to their initial investment and won’t underwrite without an unconditional guarantee from the partner(s). It’s undesirable for the partners but not at all strange. ---
**Author:** ![dauerbach](https://avatars.discourse-cdn.com/v4/letter/d/c2a13f/32.png) [@dauerbach](https://boards.straightdope.com/u/dauerbach)\ **Post date:** [July 2, 2011, 8:57pm UTC](https://boards.straightdope.com/t/limited-partnership-question/587550/6 "2011-07-02T20:57:09Z")
Everyone, thanks for chiming in. Clearly, there is not nearly enough information. I will decide if the risks and benefits as I understand them are worthwhile, and if so will shell out a few hundred for a lawyer to review and advise.