Method and apparatus for modeling and executing deferred award instrument plan

• US 6,161,096 A
• Filed: 10/22/1998
• Issued: 12/12/2000
• Est. Priority Date: 10/22/1998
• Status: Expired due to Fees

• Current Assignee: Advisors Solution LLC, Ascensus Insurance Services, Inc. (Citigroup Incorporated)
• Original Assignee: Lawrence L. Bell
• Inventors: Bell, Lawrence L.
• Primary Examiner(s): MacDonald, Allen R.
• Assistant Examiner(s): TEITELBAUM, ANNE H
• Application Number:
  US09/177,131
• Time in Patent Office: 782 Days
• Field of Search: 705/4, 705/36, 705/40, 705/35, 705/37, 705/38, 705/39, 705/1
• US Class Current: 705/36.00R
• CPC Class Codes: G06Q 10/10 Office automation; Time management
• CPC Class Codes: G06Q 40/00 Finance; Insurance; Tax strategies; Processing of corporate or income taxes
• CPC Class Codes: G06Q 40/06 Asset management; Financial planning or analysis
• CPC Class Codes: G06Q 40/10 Tax strategies

Abstract

A method and apparatus for deferred award instrument plan by identifying at least one participant in the deferred award plan, retrieving financial data related to stock options corresponding to the identified participant, computing a spread associated with the retrieved stock options, establishing a rabbi trust with the spread, determining whether a life insurance policy has been purchased by the participant, determining whether a split dollar agreement has been executed, monitoring and paying at least one premium for the life insurance policy and notifying the participants that a payment associated with the life insurance policy has been paid.

Claims

1. A method for identifying and administering a deferred award instrument plan in order to reduce individual income and estate taxes implemented through a computer system, said method comprising the steps of:

identifying at least one employee for an employer in said deferred award plan;

retrieving financial data related to stock options corresponding to said identified employee;

computing a spread associated with said retrieved stock options;

establishing a rabbi trust with said spread;

determining whether an individual life insurance policy has been purchased by said employee;

enabling under control of said employer said employee to purchase stock or other investments through said purchased life insurance policy;

determining whether a split dollar agreement has been executed;

monitoring whether said employer has paid at least one premium for said individual life insurance policy;

notifying said employee that a payment associated with said life insurance policy has been paid;

allowing said employee to borrow funds accumulated in said life insurance policy up to a limit set forth in said split dollar agreement, said limit reflecting said employee'"'"'s stock options; and

reporting to said employee an amount of tax savings;

representing said deferred award instrument plan by;

inputting models factors based on actual performance;

retrieving human resource data;

retrieving stock option data;

retrieving fair market value information relating to said stock option data;

computing company cost and length of program; and

storing said retrieved and computed data.

2. The method as claimed in claim 1 further comprising:

converting said human resource data to a deferred award instrument plan format.

3. The method as claimed in claim 1 further comprising:

converting said stock option data to a deferred award instrument plan format.

4. The method as claimed in claim 1 further comprising:

inputting weighing indicators corresponding to said model factors.

5. The method as claimed in claim 4 further comprising:

displaying at least a predetermined portion of said retrieved and stored data based on said weighing indicators.

6. A system for implementing a deferred award instrument plan comprising:

a processor;

memory operationally attached to said processor;

an input device operationally attached to said processor;

a display device operationally attached to said processor;

an identifier for identifying at least one employee for an employer in said deferred award plan;

a retrieving unit for retrieving financial data related to stock options corresponding to said identified employee;

a processor for computing a spread associated with said retrieved stock options;

trust establishment unit for establishing a rabbi trust with said spread;

determining unit for determining whether an individual life insurance policy has been purchased by said employee;

a trading unit for enabling under control of said employer said employee to purchase stock or other investments through said purchased life insurance policy;

a determining unit for determining whether a split dollar agreement has been executed;

a monitor for monitoring whether said employer has paid at least one premium for said individual life insurance policy;

a notifier for notifying said employee that a payment associated with said life insurance policy has been paid;

a loan unit allowing said employee to borrow funds accumulated in said life insurance policy up to a limit set forth in said split dollar agreement said limit reflecting said employee'"'"'s stock options; and

reporting unit for reporting to said employee an amount of tax savings;

modeling unit for representing said deferred award instrument plan by;

inputting models factors based on actual performance;

retrieving human resource data;

retrieving stock option data;

retrieving fair market value information relating to said stock option data;

computing company cost and length of program; and

storing said retrieved and computed data.

7. The system of claims 6, further including a converter for converting said stock option data to a deferred award instrument plan format.

8. The system of claim 6, further including a second converter for converting said human resource data to a deferred award instrument plan format.