Collateralized loans with periodic draws subject to a triggering event
View Patent ↗This document describes techniques for implementing a collateralized loan with periodic draws subject to a triggering event. These techniques include receiving funds from a client and establishing a credit line collateralized by the funds. The techniques may further include periodically dispensing an amount from the credit line upon occurrence of a predetermined event (e.g., the client's attainment of a certain age) and until death of the client. At the death of the client, any remaining funds may then be released to, for example, the client's estate.
1. A system comprising:
a processor;
one or more computer-readable storage media having instructions contained therein which cause the processor to:
receive financial assets from a client directed to a loan fund;
establish a credit line collateralized by the loan fund;
dispense an amount from the credit line commencing when the client reaches a predetermined age and until death of the client; and either:
receive payment of an outstanding balance of the credit line upon death of the client and return the financial assets; or
receive, upon the death of the client, a request to pay the outstanding loan balance from the loan fund and release any remaining financial assets of the loan fund.
2. The system of claim 1 , wherein the financial assets are received as a single lump sum.
3. The system of claim 1 , wherein the financial assets are received periodically from the client.
4. The system of claim 1 , wherein the amount is a fixed amount.
5. The system of claim 4 , wherein the fixed amount is determined at least in part as a percent of a value of the financial assets when the client achieves the predetermined age.
6. The system of claim 5 , wherein the percent is established based at least in part on an age of the client at a time of receiving of the financial assets.
7. The system of claim 5 , wherein the percent is established at or before receiving the financial assets.
8. The system of claim 1 , wherein the instructions further cause the processor to charge management and loan commitment fees against the loan fund.
9. The system of claim 8 , wherein the charging is one or more of a one time event and a periodic event.
10. The system of claim 8 , wherein the instructions further cause the processor to dispense the financial assets minus the management and loan commitment fees to the client upon a client request prior to the client reaching the predetermined age.
11. The system of claim 1 , wherein the the financial assets are dispensed on a periodic basis.
12. The system of claim 1 , wherein the instructions further cause the processor to determine a balance of the credit line as a total of the dispensed amount and interest charged against the dispensed amount on a periodic basis.
13. The system of claim 1 , wherein the remaining financial assets are calculated as the dispensed amount and accrued interest subtracted from the loan fund.
14. One or more non-transitory computer-readable storage media comprising computer-executable instructions that, when executed perform acts comprising:
receiving funds from a client to be held in an account;
establishing a credit line collateralized by the funds;
periodically dispensing an amount from the credit line upon occurrence of a predetermined event and until a triggering event occurs;
repaying the credit line from the funds held in the account upon detection of the triggering event; and
releasing any remaining funds after the credit line has been repaid.
15. The computer-readable storage media of claim 14 , wherein the receiving comprises receiving the funds as a single lump sum.
16. The computer-readable storage media of claim 14 , wherein the establishing comprises establishing the credit line based upon a value of the funds after management fees and loan commitment fees are subtracted from the funds.
17. The computer-readable storage media of claim 14 , wherein the periodically dispensing comprises determining the amount based upon at least a first factor established at the time of the receiving and at least a second factor established at the time of the dispensing.
18. The computer-readable storage media of claim 17 , wherein the at least a first factor established at the time of the receiving is an age of the client at the time of the receiving and the at least a second factor established at the time of dispensing is the value of the funds at the time of dispensing.
19. The computer-readable storage media of claim 14 , wherein the releasing comprises releasing a value of the funds at the time of death minus any dispensed amounts and associated capitalized interest.
20. The computer-readable storage media of claim 14 , wherein the releasing comprises collecting any dispensed amounts and associated capitalized interest and releasing the funds.
21. The computer-readable storage media of claim 14 , wherein the releasing comprises releasing the funds to the client's estate.