Method and apparatus for modeling and executing deferred award instrument plan

Claim 1

A method for identifying and administering a deferred award instrument plan through a computer system in order to reduce individual income and estate taxes, said method comprising the steps of: identifying at least one employee for an employer in said deferred award plan; retrieving financial data related to a deferred compensation plan and to an employee welfare benefit plan corresponding to said identified employee; computing a spread associated with said deferred compensation plan; establishing a rabbi trust with said spread; determining whether an individual life insurance policy has been purchased by said employee, said life insurance policy combining features of said deferred compensation plan and said employee welfare benefit plan; enabling under control of said employer said employer to purchase investments through said purchased life insurance policy; determining whether a spilt dollar agreement has been executed; monitoring whether said employer has paid at least one premium for said life insurance policy; and 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 a level of compensation according to said deferred compensation plan; 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 deferred compensation data and employee welfare benefit data; retrieving fair market value information relating to deferred compensation and employee welfare benefit data; computing company cost and length of program; and storing said retrieved and computed data.

Claim 2

A method for identifying and administering a deferred award instrument plan through a computer system in order to reduce individual income and estate taxes, said method comprising the steps of: identifying at least one employee for an employer in said deferred award plan; retrieving financial data related to a deferred compensation plan and to an employee welfare benefit plan corresponding to said identified employee; computing a spread associated with said deferred compensation plan; establishing a rabbi trust with said spread; determining whether an individual life insurance policy has been purchased by said employee, said life insurance policy combining features of said deferred compensation plan and said employee welfare benefit plan; enabling under control of said employer said employer to purchase investments through said purchased life insurance policy; determining whether a spilt dollar agreement has been executed; monitoring whether said employer has paid at least one premium for said life insurance policy; and 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 a level of compensation according to said deferred compensation plan; 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 deferred compensation data and employee welfare benefit data; retrieving fair market value information relating to deferred compensation and employee welfare benefit data; computing company cost and length of program; and storing said retrieved and computed data.

Claim 7

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 a deferred compensation plan and employee welfare benefit plan; a processor for computing a spread associated with at least one of said deferred compensation and said employee welfare benefit plans; 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 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 deferred compensation; 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 employee welfare benefit plan and deferred compensation plan data; retrieving fair market value information relating to said employee welfare benefit plan and deferred compensation data; computing company cost and length of program; and storing said retrieved and computed data.

Claim 8

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 a deferred compensation plan and employee welfare benefit plan; a processor for computing a spread associated with at least one of said deferred compensation and said employee welfare benefit plans; 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 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 deferred compensation; 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 employee welfare benefit plan and deferred compensation plan data; retrieving fair market value information relating to said employee welfare benefit plan and deferred compensation data; computing company cost and length of program; and storing said retrieved and computed data.