Method and system for converting a designated portion of future social security and other retirement payments to current benefits

• US 6,625,582 B2
• Filed: 03/12/1999
• Issued: 09/23/2003
• Est. Priority Date: 03/12/1999
• Status: Expired due to Term

• Current Assignee: Retirement Funding Services, LLC
• Original Assignee: Richman/Singer Venture
• Inventors: Richman, Richard Paul, Singer, Craig
• Primary Examiner(s): Millin, V.
• Assistant Examiner(s): Kyle, Charles R.
• Application Number:
  US09/267,255
• Publication Number:
  US 20020161681A1
• Time in Patent Office: 1,656 Days
• Field of Search: 705/35
• US Class Current: 705/35
• CPC Class Codes: G06Q 20/10 specially adapted for electronic funds transfer [EFT] systems; specially adapted for home banking systems
• CPC Class Codes: G06Q 40/00 Finance; Insurance; Tax strategies; Processing of corporate or income taxes
• CPC Class Codes: G06Q 40/02 Banking, e.g. interest calculation or account maintenance credit or loans G06Q40/03
• CPC Class Codes: G06Q 40/06 Asset management; Financial planning or analysis
• CPC Class Codes: G06Q 40/10 Tax strategies

Abstract

A system and method for a beneficiary of Social Security payments or other retirement payments to access present value of future benefits to meet current financial and other objectives is provided. A financial institution is designated to be a direct depository and a disbursement agent for disbursing, at the direction of the beneficiary predetermined portions of retirement payments to a funding source or asset or service provider in exchange for access to capital or the acquisition of an asset or service by the beneficiary in an amount or having a value at least in part based on present value of a designated portion of future retirement payments. In the event of the premature termination of the beneficiary'"'"'s participation in the program, the funding source or asset or service provider may seek reimbursement of a specified amount relating to the capital or asset or service it made available to the beneficiary, but not from subsequent retirement payments. In the event that the beneficiary dies during the term of the program, the funding source or asset or service provider are precluded from looking to a surviving spouse'"'"'s share of remaining retirement payments, or from the beneficiary'"'"'s estate, for reimbursement of any sustained loss, nor can it have any remaining interest in any asset acquired or service obtained by the beneficiary under the program. The funding source or asset or service provider can insure against the risk by purchasing group term life insurance in its favor covering all beneficiaries participating in the program.

Claims

1. A computerized method for creating a source of funds based on present value of future retirement payments, comprising the steps of:

a. designating an account in a depository for a beneficiary to receive future retirement payments payable to said beneficiary from a source of said retirement payments for a preselected period of time;

b. designating a benefit provider for providing a monetary benefit to said beneficiary;

c. authorizing said depository to periodically disburse a predetermined portion of said retirement payments deposited in said account to said benefit provider during said preselected period of time;

d. providing said monetary benefit to said beneficiary from said benefit provider based at least in part on present value of a designated portion of said future retirement payments without encumbering said beneficiary'"'"'s right to said future retirement payments and without violating legislated proscriptions in the United States against alienation of future retirement benefits;

e. causing said future retirement payments to be deposited into said account throughout said preselected period of time;

f. causing said depository to transfer a portion of said retirement payments deposited into said account to said benefit provider during said preselected period of time; and

g. reimbursing said benefit provider from resources other than said future retirement payments if said transfer of a portion of said retirement payments from said depository to said benefit provider are curtailed prior to said end of said preselected period of time, and making said retirement payments available for the exclusive use of said beneficiary.

2. The method of claim 1, further comprising the steps of determining if said preselected period of time has expired, and if said preselected period of time has not expired, repeating steps e and f, and if said preselected period of time has expired, making said retirement payments available for the exclusive use of said beneficiary.

3. The method of claim 1, further comprising the steps of determining if said preselected period of time has expired, and if said preselected period of time has not expired, repeating steps e and f, and if said preselected period of time has expired, setting said preselected period of time to a new preselected period of time, repeating steps e and f, determining if said new preselected period of time has expired, and if said new preselected period of time has not expired, repeating steps e and f, and if said new preselected period of time has expired, making said retirement payments available for the exclusive use of said beneficiary.

4. The method of claim 1, further comprising the step of obtaining life insurance on the life of said beneficiary in favor of said benefit provider wherein if said beneficiary dies prior to said end of said preselected period of time, a benefit from said life insurance policy is paid to said benefit provider.

5. A computerized method for creating a source of funds based on present value of future retirement payments, comprising the steps of:

a. designating an account in a depository for a beneficiary to receive future retirement payments payable to said beneficiary from a source of said retirement payments for a preselected period of time;

b. designating a benefit provider for providing an asset other than a monetary payment to said beneficiary;

c. authorizing said depository to periodically disburse a predetermined portion of said retirement payments deposited in said account to said benefit provider during said preselected period of time;

d. providing said asset to said beneficiary from said benefit provider based at least in part on present value of a designated portion of said future retirement payments without encumbering said beneficiary'"'"'s right to said future retirement payments and without violating legislated proscriptions in the United States against alienation of future retirement benefits;

e. causing said future retirement payments to be deposited into said account throughout said preselected period of time;

f. causing said depository to transfer a portion of said retirement payments deposited into said account to said benefit provider during said preselected period of time; and

g. liquidating said asset and reimbursing said benefit provider from proceeds of said asset liquidation if said transfers of a portion of said retirement payments from said depository to said benefit provider are curtailed prior to said end of said preselected period of time, and making said retirement payments available for the exclusive use of said beneficiary.

6. The method of claim 5, further comprising the steps of determining if said preselected period of time has expired, and if said preselected period of time has not expired, repeating steps e and f, and if said preselected period of time has expired, making said retirement payments available for the exclusive use of said beneficiary.

7. The method of claim 5, further comprising the steps of determining if said preselected period of time has expired, and if said preselected period of time has not expired, repeating steps e and f, and if said preselected period of time has expired, setting said preselected period of time to a new preselected period of time, repeating steps e and f, determining if said new preselected period of time has expired, and if said new preselected period of time has not expired, repeating steps e and f, and if said new preselected period of time has expired, making said retirement payments available for the exclusive use of said beneficiary.

8. The method according to claim 5, further comprising the step of obtaining life insurance on the life of said beneficiary in favor of said benefit provider wherein if said beneficiary dies prior to said end of said preselected period of time, a benefit from said life insurance policy is paid to said benefit provider.

9. A computerized method for creating a source of funds based on present value of future retirement payments, comprising the steps of:

a. designating an account in a depository for a beneficiary to receive future retirement payments payable to said beneficiary from a source of said retirement payments for a preselected period of time;

b. designating a benefit provider for providing a service to said beneficiary;

c. authorizing said depository to periodically disburse a predetermined portion of said retirement payments deposited in said account to said benefit provider during said preselected period of time;

d. providing said service to said beneficiary from said benefit provider based at least in part on present value of a designated portion of said future retirement payments without encumbering said beneficiary'"'"'s right to said future retirement payments and without violating legislated proscriptions in the United States against alienation of future retirement benefits;

e. causing said future retirement payments to be deposited into said account throughout said preselected period of time;

f. causing said depository to transfer a portion of said retirement payments deposited into said account to said benefit provider during said preselected period of time; and

g. terminating said service if said transfers of a portion of said retirement payments from said depository to said benefit provider are curtailed prior to said end of said preselected period of time, and making said retirement payments available for the exclusive use of said beneficiary.

10. The method of claim 9, further comprising the steps of determining if said preselected period of time has expired, and if said preselected period of time has not expired, repeating steps e and f, and if said preselected period of time has expired, making said retirement payments available for the exclusive use of said beneficiary.

11. The method of claim 9, further comprising the steps of determining if said preselected period of time has expired, and if said preselected period of time has not expired, repeating steps e and f, and if said preselected period of time has expired, setting said preselected period of time to a new preselected period of time, repeating steps e and f, determining if said new preselected period of time has expired, and if said new preselected period of time has not expired, repeating steps e and f, and if said new preselected period of time has expired, making said retirement payments available for the exclusive use of said beneficiary.

12. The method according to claim 9, further comprising the step of obtaining life insurance on the life of said beneficiary in favor of said benefit provider wherein if said beneficiary dies prior to said end of said preselected period of time, a benefit from said life insurance policy is paid to said benefit provider.

13. A system for creating a source of funds based on present value of future retirement payments, comprising an account in a depository for a beneficiary to receive future retirement payments payable to said beneficiary from a source of said retirement payments for a preselected period of time, means for causing said future retirement payments to be deposited into said account during said preselected period of time, means for causing said depository to disburse a predetermined portion of said retirement payments deposited in said account to a benefit provider during said preselected period of time in exchange for a present benefit provided to said beneficiary from said benefit provider based at least in part on present value of a designated portion of said future retirement payments, said exchange being without encumbering said beneficiary'"'"'s right to said future retirement payments and without violating legislated proscriptions in the United States against alienation of future retirement benefits, means for reimbursing said benefit provider from resources other than said future retirement payments if said transfers of a portion of said retirement payments from said depository to said benefit provider are curtailed prior to said end of said preselected period of time, and means for making said retirement payments available for the exclusive use of said beneficiary.

14. The system of claim 13, wherein the benefit provider is a source of capital.

15. The system of claim 13, wherein the benefit provider is a source of assets other than capital.

16. The system of claim 13, wherein the benefit provider is a provider of services.

17. The system according to claim 13, further comprising insurance on the life of said beneficiary in favor of said benefit provider wherein if said beneficiary dies prior to said end of said preselected period of time a benefit from said insurance is paid to said benefit provider.

18. A computerized method for creating a source of funds based on present value of future Social Security retirement benefits, comprising the steps of:

a. designating an account in a depository for a beneficiary to receive future payments of Social Security retirement benefits for a preselected period of time;

b. designating a benefit provider for providing a monetary benefit to said beneficiary;

c. authorizing said depository to periodically disburse a predetermined portion of said Social Security payments deposited in said account to said benefit provider during said preselected period of time;

d. providing said monetary benefit to said beneficiary from said benefit provider based at least in part on present value of a designated portion of said future payments of Social Security benefits without encumbering said beneficiary'"'"'s right to said future payments of Social Security benefits and without violating legislated proscriptions in the United States against alienation of future Social Security benefits;

e. causing said future payments of Social Security benefits to be deposited into said account throughout said preselected period of time;

f. causing said depository to transfer a portion of said Social Security payments deposited in said account from said account to said benefit provider during said preselected period of time; and

g. reimbursing said benefit provider from resources other than said future Social Security payments if said transfers of a portion of said Social Security payments from said depository to said benefit provider are curtailed prior to said end of said preselected period of time, and making said Social Security payments available for the exclusive use of said beneficiary.

19. The method of claim 18, further comprising the steps of determining if said preselected period of time has expired, and if said preselected period of time has not expired, repeating steps e and f, and if said preselected period of time has expired, making said Social Security payments available for the exclusive use of said beneficiary.

20. The method of claim 18, further comprising the steps of determining if said preselected period of time has expired, and if said preselected period of time has not expired, repeating steps e and f, and if said preselected period of time has expired, setting said preselected period of time to a new preselected period of time, repeating steps e and f, determining if said new preselected period of time has expired, and if said new preselected period of time has not expired, repeating steps e and f, and if said new preselected period of time has expired, making said Social Security payments available for the exclusive use of said beneficiary.

21. The method of claim 18, further comprising the step of obtaining life insurance on the life of said beneficiary in favor of said benefit provider wherein if said beneficiary dies prior to said end of said preselected period of time, a benefit from said life insurance policy is paid to said benefit provider.

22. A computerized method for creating a source of funds based on present value of future Social Security retirement benefits, comprising the steps of:

a. designating an account in a depository for a beneficiary to receive future payments of Social Security retirement benefits for a preselected period of time;

b. designating a benefit provider for providing an asset other than a monetary payment to said beneficiary;

c. authorizing said depository to periodically disburse a predetermined portion of said Social Security parents deposited in said account to said benefit provider during said preselected period of time;

d. providing said asset to said beneficiary from said benefit provider based at least in part on present value of a designated portion of said future payments of Social Security benefits without encumbering said beneficiary'"'"'s right to said future payments of Social Security benefits and without violating legislated proscriptions in the United States against alienation of future Social Security benefits;

e. causing said future payments of Social Security benefits to be deposited into said account throughout said preselected period of time;

f. causing said depository to transfer a portion of said Social Security payments deposited in said account from said account to said benefit provider during said preselected period of time; and

g. liquidating said asset and reimbursing said benefit provider from proceeds of said asset liquidation if said transfers of a portion of said Social Security payments from said depository to said benefit provider are curtailed prior to said end of said preselected period of time, and making said Social Security payments available for the exclusive use of said beneficiary.

23. The method of claim 22, further comprising the steps of determining if said preselected period of time has expired, and if said preselected period of time has not expired, repeating steps e and f, and if said preselected period of time has expired, making said retirement payments available for the exclusive use of said beneficiary.

24. The method of claim 22, further comprising the steps of determining if said preselected period of time has expired, and if said preselected period of time has not expired, repeating steps e and f, and if said preselected period of time has expired, setting said preselected period of time to a new preselected period of time, repeating steps e and f, determining if said new preselected period of time has expired, and if said new preselected period of time has not expired, repeating steps e and f, and if said new preselected period of time has expired, making said retirement payments available for the exclusive use of said beneficiary.

25. The method according to claim 22, further comprising the step of obtaining life insurance on the life of said beneficiary in favor of said benefit provider wherein if said beneficiary dies prior to said end of said preselected period of time, a benefit from said life insurance policy is paid to said benefit provider.

26. A computerized method for creating a source of funds based on present value of future Social Security retirement benefits, comprising the steps of:

a. designating an account in a depository for a beneficiary to receive future payments of Social Security retirement benefits for a preselected period of time;

b. designating a benefit provider for providing a service to said beneficiary;

c. authorizing aid depository to periodically disburse a predetermined portion of said Social Security parents deposited in said account to said benefit provider during said preselected period of time;

d. providing said service to said beneficiary from said benefit provider based at least in part on present value of a designated portion of said future payments of Social Security benefits without encumbering said beneficiary'"'"'s right to said future payments of Social Security benefits and without violating legislated proscriptions in the United States against alienation of future Social Security benefits;

e. causing said future payments of Social Security benefits to be deposited into said account throughout said preselected period of time;

f. causing said depository to transfer a portion of said Social Security payments deposited in said account from said account to said benefit provider during said preselected period of time; and

g. terminating said service if said transfers of a portion of said Social Security payments from said depository to said benefit provider are curtailed prior to said end of said preselected period of time, and making said Social Security payments available for the exclusive use of said beneficiary.

27. The method of claim 26, further comprising the steps of determining if said preselected period of time has expired, and if said preselected period of time has not expired, repeating steps e and f, and if said preselected period of time has expired, making said retirement payments available for the exclusive use of said beneficiary.

28. The method of claim 26, further comprising the steps of determining if said preselected period of time has expired, and if said preselected period of time has not expired, repeating steps e and f, and if said preselected period of time has expired, setting said preselected period of time to a new preselected period of time, repeating steps e and f, determining if said new preselected period of time has expired, and if said new preselected period of time has not expired, repeating steps e and f, and if said new preselected period of time has expired, making said retirement payments available for the exclusive use of said beneficiary.

29. The method according to claim 26, further comprising the step of obtaining life insurance on the life of said beneficiary in favor of said benefit provider wherein if said beneficiary dies prior to said end of said preselected period of time, a benefit from said life insurance policy is paid to said benefit provider.

30. A system for creating a source of funds based on present value of future Social Security retirement benefits, comprising an account in a depository for a beneficiary to receive future payments of Social Security benefits for a preselected period of time, means for causing said future payments of Social Security benefits to be deposited into said account during said preselected period of time, means for causing said depository to disburse a predetermined portion of said Social Security payments deposited in said account to a benefit provider during said preselected period of time in exchange for a present benefit provided to said beneficiary from said benefit provider based at least in part on present value of a designated portion of said future payments of Social Security benefits, said exchange being without encumbering said beneficiary'"'"'s right to said future payments of Social Security benefits and without violating legislated proscriptions in the United States against alienation of future Social Security benefits, means for reimbursing said benefit provider from resources other than said future payments if said transfers of a portion of said payments from said depository to said benefit provider are curtailed prior to said end of said preselected period of time, and means for making said future payments of Social Security benefits available for the exclusive use of slid beneficiary.

31. The system of claim 30, wherein the benefit provider is a source of capital.

32. The system of claim 30, wherein the benefit provider is a source of assets other than capital.

33. The system of claim 30, wherein the benefit provider is a provider of services.

34. A The system according to claim 30, further comprising insurance on the life of said beneficiary in favor of said benefit provider wherein if said beneficiary dies prior to said end of said preselected period of time a benefit from said insurance is paid to said benefit provider.