US 2007/0192220 A1 · Method for developing, financing and administering an asset protected executive benefit program

Abstract

A method is provided for developing, financing and administering an asset-protected executive benefit. An employer or Investor makes an investment in an LLC whereby the Employer or Investor becomes the preferred, non-managing member and is entitled to receive a guaranteed payment plus pre-established rate of return. An Executive also makes an investment in the same LLC, becomes a non-preferred, managing member and is entitled to receive value created by the LLC in excess of the amount paid to the preferred member. The LLC invests in, owns, and is the beneficiary of two life insurance policies; a Preferred Policy designed to have a death benefit equal to the investment plus cumulative guaranteed return to the preferred member, and an Investment Policy designed to meet the long-term investment objectives of the members. The Executive may instruct the LLC to borrow against the Investment Policy from which the Executive receives a cash distribution.

Claims21

Dependent claims

A method for developing, financing and administering an asset-protected executive benefit program, comprising the steps of:

soliciting executive participation though sophisticated forecasting and modeling;
selecting a program sponsor for the group consisting of an employer of said executive and an outside investor;
determining an amount to be capitalized by each of said executive and said program sponsor;
organizing an investment vehicle in an asset-protection friendly jurisdiction;
designing an Preferred Policy to ensure a guaranteed return to said program sponsor;
designing an Investment Policy to meet investment objectives of said program sponsor;
creating an Operating Agreement for said investment vehicle that meets objectives of said executive and said program sponsor, including the ability to allocate non-recourse and excess non-recourse debt and tax-free income;
and
providing annual program administration to track investments, partnership allocations, income, and distributions.

6 more elements

Dependencies are inferred from the claim text.

Method for developing, financing and administering an asset protected executive benefit program

Life of this patent

Method for developing, financing and administering an asset protected executive benefit program

Life of this patent

Abstract

Claims21