Estate Disposition Modeling

• US 20100063908A1
• Filed: 09/05/2008
• Published: 03/11/2010
• Est. Priority Date: 09/05/2008
• Status: Active Grant

• Current Assignee: JP Morgan Chase Bank, N.A. (JP Morgan Chase & Co)
• Original Assignee: JP Morgan Chase Bank, N.A. (JP Morgan Chase & Co)
• Inventors: Toben, Ryan D., Millligan, Tina D., El-Menshawy, Ramy F., Racanelli, Janine A., Anderson, Lauren, Siow, Martin W.
• Granted Patent: US 8,204,834 B2
• Time in Patent Office: Days
• US Class Current: 705/31
• CPC Class Codes: G06Q 40/10 Tax strategies
• CPC Class Codes: G06Q 40/123 Tax preparation or submission
• CPC Class Codes: G06Q 50/186 Estate planning

Abstract

A system and computer-implemented method for modeling estate disposition are disclosed. One embodiment receives balance sheet inputs, estate planning document inputs and timing/event inputs. Conveyance and tax logic are applied to the inputs. Flowcharts illustrating the disposition of the estate based on the inputs are generated. Tax and liquidity analysis based on the inputs are also generated.

Claims

1. A computer-implemented method for modeling a disposition of an estate, the method comprising:

receiving balance sheet inputs for a first individual, the balance sheet inputs including an asset and asset value information;

receiving an indication of a first conveyance event;

receiving first estate document inputs for the first individual, the estate document inputs including a first conveyance instruction associating the asset and a first beneficiary, the conveyance instruction corresponding to the first conveyance event;

estimating a first tax liability value associated with the asset, the first tax liability corresponding to the first conveyance instruction and the first conveyance event;

comparing the first tax liability value to the asset value information to generate a liquidity analysis report corresponding to the first conveyance event; and

generating a first flowchart corresponding to the first conveyance event, the first flowchart visually representing the first conveyance instruction.

2. The method of claim 1, further comprising:

receiving balance sheet inputs for a second individual;

receiving an indication of a second conveyance event;

receiving second estate document inputs for the second individual, the estate document inputs including a second conveyance instruction corresponding to the second conveyance event;

estimating a second tax liability value corresponding to the second conveyance instruction and the second conveyance event; and

generating a second flowchart corresponding to the second conveyance event, the second flowchart visually representing the second conveyance instruction, wherein the liquidity analysis report corresponds to the first and second conveyance events.

3. The method of claim 2, wherein the first conveyance event corresponds to the death of the first individual, and the second conveyance event corresponds to the death of the second individual.

4. The method of claim 3, further comprising:

estimating a projected change in balance sheet inputs based on a difference in time between the deaths of the first and second individuals; and

updating the first and second balance sheet inputs based on the projected change in value.

5. The method of claim 1, further comprising:

generating an alternate conveyance instruction;

estimating an alternate tax liability value corresponding to the alternate conveyance instruction and the alternate conveyance event;

comparing the alternate tax liability value and the first tax liability value to identify a preferred conveyance instruction.

6. The method of claim 1, further comprising:

generating an alternate conveyance event; and

estimating an alternate tax liability value corresponding to the alternate conveyance event.

7. The method of claim 5, further comprising:

generating an alternate conveyance event; and

estimating an alternate tax liability value corresponding to the alternate conveyance event and the alternate conveyance instruction.

8. The method of claim 1, wherein the first or second flowcharts include customizable graphics and text fields.

9. The method of claim 8, wherein the first or second flowcharts include annotations for linking a representation of a conveyed asset with a corresponding portion of an estate planning document.

10. A computer-implemented method for modeling estate disposition, the method comprising:

receiving balance sheet information including asset information and liability information for an estate;

receiving first estate planning document information including a first conveyance instruction associating the asset information and the liability information with a first beneficiary;

receiving a first conveyance event corresponding to the first conveyance instruction;

generating a first taxation estimate based on the first conveyance instruction and a corresponding first taxation rate;

generating an estate cash requirements estimate and an estate cash available estimate of the estate based on the first taxation estimate;

comparing the first estate cash requirements estimate and the first estate cash available estimate to generate an estate liquidity analysis report corresponding to the first conveyance event; and

applying the first conveyance instruction and the first taxation estimate to the balance sheet information to generate a first disposition flowchart visually depicting the disposition of the asset information and liability information after the first conveyance event, the first flowchart indicating a portion of the asset information conveyed to the first beneficiary.

11. The method of claim 10, further comprising:

receiving second estate planning document information including a second conveyance instruction associating the asset information and the liability information with a second beneficiary;

receiving a second conveyance event corresponding to the second conveyance instruction;

generating a second taxation estimate based on the second conveyance instruction and a corresponding second taxation rate; and

applying the second conveyance instruction and the second taxation estimate to the balance sheet information to generate a second disposition flowchart visually depicting the disposition of the asset information and liability information after the second conveyance event, the second flowchart indicating a portion of the asset information conveyed to the second beneficiary, wherein

the estate cash requirements estimate and the estate cash available estimate are based on the first and second taxation estimates, and the estate liquidity analysis report corresponds to the first and second conveyance events.

12. The method of claim 10, further comprising:

estimating a marginal contribution of one of the first or second conveyance instructions to the estate cash requirements estimate.

13. The method of claim 10, further comprising:

generating an alternate conveyance instruction;

generating an alternate cash requirements estimate based on the alternate conveyance instruction;

comparing the alternate cash requirements estimate with the estate cash requirements estimate.

14. The method of claim 10, further comprising:

generating an alternate conveyance event;

generating an alternate liquidity analysis report and an alternate disposition flowchart corresponding to the alternate conveyance event.

15. The method of claim 10, wherein the first conveyance event is a death of the estate-holder.

16. The method of claim 11, wherein the second conveyance event is a death of the estate-holder'"'"'s spouse.

17. The method of claim 10, wherein the first or second estate planning document information includes at least one of ownership information, will and trust information, and prior gifting history.

18. The method of claim 11, further comprising:

estimating a projected change in value of the asset information and the liability information based on a difference in time between the first conveyance event and the second conveyance event; and

updating the balance sheet information based on the projected change in value.

19. A system for modeling estate disposition, the system comprising:

a memory configured to store

(i) balance sheet information including asset information and liability information for an estate,

(ii) first estate planning document information including at least one first conveyance instruction associating at least one of the asset information and the liability information with a first beneficiary,

(iii) second estate planning document information including at least one second conveyance instruction associating at least one of the asset information and the liability information with a second beneficiary,

(iv) first tax information including a first tax rate associated with the at least one first conveyance instruction, the conveyance instruction corresponding to a first conveyance event, and

(v) second tax information including a second tax rate associated with the at least one second conveyance instruction, the conveyance instruction corresponding to a second conveyance event; and

a processor configured to

(i) estimate the cash requirements of the estate based on the first and second conveyance events, the cash requirements including estate and income tax liabilities,

(ii) estimate the cash available to the estate based on the first and second conveyance events, the cash available corresponding to the balance sheet information and the first and second tax rates,

(iii) generate a liquidity analysis report comparing the cash requirements and the cash available, and

(iv) apply the first and second conveyance instructions and the first and second tax rates to the balance sheet information to generate a customizable graphical flowchart reflecting a disposition of the estate after the second conveyance event.

20. The system of claim 19, further comprising:

a remote database storing at least one of additional balance sheet information and additional estate planning document information.