Abstract:
By creating a self-determined interest rate platform, a trust fund can be transferred on the platform through a bidding process, so that risk oriented consigners can expand their credit to increase their investments, enhancing assurance to a beneficiary. On the contrary, this can increase interest income of discreet consigners through direct low-cost financial transactions. By creating a trust fund transaction platform, individual consignment funds can reflect the cash demand in the money market on the platform, so that the number of participants can increase the strength of marriage trusts and expand the trust fund market.

Description:
BACKGROUND OF THE INVENTION 
       [0001]    1. Field of the Invention 
         [0002]    The present invention relates to financial e-commerce in a marriage trust area, using information technology to create a marriage obligation fulfillment trust method and system. The present invention uses the self-determined interest rate platform in Taiwan patent application No. 09611 6081, “Method and system for setting up a self-determined interest rate platform” and the law of large numbers to create a bidding platform to allow a consigner attending the bid platform to raise money through the bidding mechanism of the said platform so as to extend credit limit and investment. The consigner can also be conservative by not placing a bid and simply earning interest. The financial institution can earn a service charge by providing service in the bidding platform. A weak party in a marriage, such as a child or another member without issue can be designated as the trust beneficiary. 
         [0003]    2. Description of the Prior Art 
         [0004]    As the society evolves, the rising of divorce rate has become a concern in the global community. Taking Taiwan as an example, the crude divorce rate (the number of divorces occurring among the population of a given geographical area during a given year) in 2006 has reached 2.83%, which had risen 50% from ten years ago; divorced couple above the age of 15 reached 6.13%, signifying a 100% increase. In 2006, 177 couples got divorced in Taiwan every day, which had risen 48% from ten years ago. It was the fifth highest rate in the world, and the highest in Asia. After a divorce is occurred, how to provide protection to the weak party in a marriage, such as the children or one of the couple, has become an important issue in Taiwan society. Thus marriage trust has developed. 
         [0005]    Traditionally marriage trust is a mechanism for consigning power of property management. A consigner entrusts his asset to a consignee so that the consignee can manage the asset of the consigner in a secure and conservative manner. The consignee receives all the power to manage the entrusted asset. The consigner has no right to participate in the financial planning and management of the entrusted asset. Thus the traditional marriage trust is a monotonous trust product. It can only satisfy conservative clients. The entrusted asset is not only unable to experience considerable growth, but is also unable to satisfy the demand of various clients. 
         [0006]    U.S. Pat. No. 5,864,685, “Increasing Income Trust Computer Transaction System and Insured Investment Account System” uses a computer system or a data process system to manage an entrusted investment account. The assets in the entrusted investment account may be designated by a single trust contract, a plurality of trust contracts or annuity contracts. After a consigner dies, his beneficiary can receive a portion of the entrusted asset from the entrusted investment account. The patent enables a computer system to efficiently manage the assets designated by a plurality of trust contracts. However, the patent fails to provide interaction between the consigner and the management of the entrusted assets. And the patent is related to a closed-end trust contract. It lacks the ability to expand the client&#39;s credit and client base. Thus, the patent has its limitations. 
         [0007]    US patent application publication No. 2004/0210460, “Marriage Insurance for Protecting against Divorce” discloses means to include investment in a marriage insurance policy. Though it makes improvement in the investment portion of a unit-linked insurance policy, it is still under the structure of a traditional unit-linked insurance policy. When a policy owner faces an economic downturn, the policy owner still has to make investment continuously, being exposed to potential investment loss. 
         [0008]    Taiwan patent application No. 09611 6081, “Method and System for Building an On-Line Self-Determined Interest Rate Platform” can be used to build the trust fund platform of the present invention. Through a direct financial bidding process, the consigner can either take advantage of the high interest rate in the savings portion of the paid insurance payments, or expand his credit to earn higher yield through investment. And the financial institution is free from taking interest rate risk, reducing the possibility of negative spread. 
         [0009]    Though both patent applications disclose means to deal with a divorce thereby securing a marriage and protecting the children financially, they are both one-way financial products. They can only satisfy certain conservative clients, and lack the interaction of funds in a capital market. Thus they are still within the scope of a traditional marriage trust. The present invention develops a novel system and method to overcome the problems of the prior art. Instead of providing a closed-end trust contract, it provides an open-end marriage trust contract. It not only secures a marriage, but also enhances the interaction between the consigner and the management of the entrusted fund. Furthermore, it enables the consigner to expand his credit. 
       SUMMARY OF THE INVENTION 
       [0010]    The present invention provides a marriage obligation fulfillment trust method and system to overcome the aforementioned problems. The purposes of the present invention are as follows: 
         [0011]    1. The present invention provides a protection to the weakest party (children) when a divorce occurs: Based on protecting the weak party in a traditional trust, the present invention provides a secure channel to earn high yield by savings or investments through expanding a consigner&#39;s credit. Thus the beneficiary can be protected, and the stability of the society can be improved. 
         [0012]    2. The present invention establishes an interactive trust platform: The traditional trust is completely managed by the financial institution. Thus the management of the traditional trust is not transparent. The client cannot participate in the management of the traditional trust. In the network generation, a fair, reasonable and transparent interactive trust platform is generated. 
         [0013]    3. The present invention is capable of expanding a client&#39;s credit: Generally, the traditional trust products cannot expand a client&#39;s credit. Either a savings trust or an investment trust, the performance (the yield of the consigner) is limited. The present invention uses the self-determined interest rate platform to expand the credit of the consigner so that the consigner can receive higher yield and protection. 
         [0014]    4. The present invention provides the consigner with the decision-making power to make payments: The consigner has the power to determine an amount for placing a bid, make deposits according to the bid provided by the platform, or receive a total bid amount through a bidding process to generate a higher yield, enhancing the amount of the trust fund. 
         [0015]    5. The present invention is an open-end trust product. It can satisfy risk oriented consigners of various levels whereas the traditional trust product can only satisfy conservative clients. 
         [0016]    6. The present invention is operated through the self-determined interest rate platform. It reflects the market interest rate, and thus creates an indicative reference interest rate. 
         [0017]    To implement the above purposes, the present invention sets up a marriage obligation fulfillment trust system. The system comprises a server. Through a communication means or the Internet network, the consigner links with the server through a user interface and exchanges instant information with the server in a secure system environment. The server then initiates a trust setup process, initiates a credit checking process, enables the bidding function of the self-determined interest rate platform, initiates the trust fund management, initiates the event identification, and initiates the fund maintenance. The system further comprises a database for storing data required for the above operations, storing results and updating data. The server comprises: 
         [0018]    a trust setup module for receiving a marriage obligation fulfillment trust application of a consigner and storing the application in the database; 
         [0019]    a credit checking module for assessing credit of the consigner, a value of a collateral, and a guarantor, and granting a bid limit to the consigner to place a bid in a self-determined interest rate platform accordingly, and storing a result in the database; 
         [0020]    a bid module for operating and managing the self-determined interest rate platform, and storing a result in the database; 
         [0021]    a trust fund management module for receiving a total bid amount from the bid module, converting the total bid amount into a trust fund according to a marriage trust contract, managing the trust fund, and storing a result in the database; 
         [0022]    an event identification module for receiving events of the consigner, analyzing and determining the events, and storing a result in the database; and 
         [0023]    a fund maintenance module for managing a cash flow of the marriage obligation fulfillment trust system, and storing a result in the database. 
         [0024]    These and other objectives of the present invention will no doubt become obvious to those of ordinary skill in the art after reading the following detailed description of the preferred embodiment that is illustrated in the various figures and drawings. 
     
    
     
       BRIEF DESCRIPTION OF THE DRAWINGS 
         [0025]      FIG. 1  is a flowchart of a method for implementing marriage obligation fulfillment trust according to the present invention. 
           [0026]      FIG. 2  is a flowchart of a consigner placing a bid. 
           [0027]      FIG. 3  shows a marriage obligation fulfillment trust system according to the present invention. 
       
    
    
     DETAILED DESCRIPTION 
       [0028]    To implement the present invention, the embodiments are detailed hereinafter: 
         [0029]      FIG. 1  is a flowchart of a method for implementing marriage obligation fulfillment trust according to the present invention. 
         [0030]    Step  101 : a consigner applies for a marriage obligation fulfillment trust through a financial institution; 
         [0031]    Step  102 : the financial institution reviews qualification of the consigner; 
         [0032]    Step  103 : after the financial institution qualifies the consigner, the financial institution and the consigner sign an on-line contract; 
         [0033]    Step  104 : after signing the on-line contract, the consigner enters a self-determined interest rate platform; 
         [0034]    Step  105 : the self-determined interest rate platform checks if the consigner would place a bid; if so, go to step  106 ; else go to step  107 ; 
         [0035]    Step  106 : determine credit of the consigner and strengthen the credit of the consigner; then go to step  108 ; 
         [0036]    Step  107 : make a deposit; end. 
         [0037]    Step  108 : place the bid; end. 
         [0038]      FIG. 2  is a flowchart of a consigner placing a bid. 
         [0039]    Step  201 : the consigner places a bid; if the consigner has won the bid, go to step  202 ; else go to step  203 ; 
         [0040]    Step  202 : convert a total bid amount to a trust fund; if the consigner has executed a divorce before a duration of the marriage obligation fulfillment trust ends, go to step  204 ; else go to step  205 ; 
         [0041]    Step  203 : the consigner makes a deposit; if the consigner has executed a divorce before a duration of the marriage obligation fulfillment trust ends, go to step  206 ; else go to step  207 ; 
         [0042]    Step  204 : calculate a balance of the marriage obligation fulfillment trust; then go to step  208 : 
         [0043]    Step  205 : calculate a balance of the marriage obligation fulfillment trust; then go to step  209 ; 
         [0044]    Step  206 : issue savings of the consigner to a beneficiary; end. 
         [0045]    Step  207 : issue savings of the consigner to the consigner at the end of the duration of the marriage obligation fulfillment trust; end. 
         [0046]    Step  208 : issue the balance of the marriage obligation fulfillment trust to a beneficiary; end. 
         [0047]    Step  209 : issue the balance of the marriage obligation fulfillment trust to a beneficiary at an end of a duration of the marriage obligation fulfillment trust; end. 
         [0048]      FIG. 3  shows a marriage obligation fulfillment trust system  302  according to the present invention. The system  302  comprises a server  304 . Through a wired or wireless communications network, the consigner  301  uses a computer, cellular phone, PDA, etc. to link with the server  304  through a user interface  303  and exchange instant information with the server  304  in a secure system environment. The server  304  is coupled to a database  311  and various modules for storing data, information and results to respective portions of the database  311 . The server  304  comprises: 
         [0049]    a trust setup module  305  for receiving a marriage obligation fulfillment trust application of the consigner  301  and storing the application in the database  311 ; 
         [0050]    a credit checking module  306  for assessing credit of the consigner  301 , a value of a collateral, and a guarantor, and granting a bid limit to the consigner  301  to place a bid in a self-determined interest rate platform  312  accordingly, and storing a result in the database  311 ; 
         [0051]    a bid module  307  for operating and managing the self-determined interest rate platform  312  by receiving a bid placed by the consigner  301 , determining a winning bidder who has placed the highest bid, determining bidders who have not won the bid and are obligated to pay for the bid, and settling accounts and completing transactions according to the cash flow need of the consigner  301  in the self-determined interest rate platform, and storing a result in the database  311 ; 
         [0052]    a trust fund management module  308  for receiving a total bid amount from the bid module  307 , converting the total bid amount into a trust fund according to a marriage trust contract, managing the trust fund, and storing a result in the database 
         [0053]    an event identification module  309  for receiving events of the consigner  301 , analyzing the events, and storing a result in the database  311 ; and 
         [0054]    a fund maintenance module  310  for managing a cash flow of the marriage obligation fulfillment trust system  302 , and storing a result in the database. The cash flow refers to the savings deposited by the consigner  301 , the trust fund converted from the total bid amount, the remittance of the trust fund, and the issuance of the trust fund or the savings to the consigner  301  or beneficiary. 
         [0055]    An example of an embodiment of the present invention is described below: 
         [0056]    Min and Sue had a wedding banquet and registered their marriage last year. Just recently Sue begot a baby and named him John. After John was born, the couple decided to purchase a marriage obligation fulfillment trust for John. The contract of the trust is as follows: 
         [0000]    
       
         
               
             
               
             
           
               
                   
               
               
                 Marriage Obligation Fulfillment Trust 
               
               
                   
               
             
             
               
                   
               
             
          
           
               
                  Consigner: Min 
               
               
                  Consignee: XX Commercial Bank 
               
               
                  Beneficiary: children - first priority; Sue - second priority 
               
               
                   Trust duration: 7 years 
               
               
                   Trust conditions: 
               
               
                   1. trust fund is directed to the bid module unconditionally 
               
               
                   2. total bid amount is converted to the trust fund 
               
               
                    unconditionally, and is managed according to 
               
               
                    management conditions of the consignee 
               
               
                   Trust fund: determined by the lowest bid limit of each term, or 
               
               
                   the failed bid of the consigner of the self-determined 
               
               
                   interest rate platform 
               
               
                   Termination condition of the trust: the consigner has executed 
               
               
                   a divorce 
               
               
                 The consigner of the trust should participate in the self-determined 
               
               
                 interest rate platform of the consignee. The conditions are as follows: 
               
               
                 Duration: 84 terms in 7 years (1 term per month) 
               
               
                 Bid amount: NT$10,000 
               
               
                 Lowest bid limit: calculated according to the floating rate of the 2- 
               
               
                    year term deposit rate of the designated bank 
               
               
                   
               
             
          
         
       
     
         [0057]    The purchase of the marriage obligation fulfillment trust provides a protection to John against the potential divorce of Min. It also provides an opportunity for Min to deposit his savings or raise cash to expand his investment. During the savings of Min, if Min has executed a divorce to satisfy the termination condition of the trust as specified in the contract before the duration of the marriage obligation fulfillment trust ends, John, the beneficiary, then can receive the savings deposited by Min so far. If Min has not executed a divorce to satisfy the termination condition of the trust before the duration of the marriage obligation fulfillment trust ends, Min can receive the total savings of NT $840,000. That is how the marriage obligation fulfillment trust works. 
         [0058]    Suppose Min makes a deposit in each term of the first two years, and the average bid of each term is NT $1000, then in average the deposit of each term is NT $9000 in the first 24 terms. If in the 25 th  term, Min mortgages his house to place a bid of NT $1200 and wins the bid, then Min can receive a total bid amount of NT $759,200 (NT $8,800×59+NT $10,000×24). The total bid amount includes the previous savings with interest and the mortgaged amount of NT $519,200. The total bid amount is to be managed by the trust fund management module  308  which will invest the total bid amount in a discreet manner to seek higher return. And Min will reimburse the mortgaged amount of NT $10,000 each term after winning the bid. 
         [0059]    If Min and Sue are divorced in the beginning of the fourth year after purchasing the trust, John, the beneficiary, or his guardian can plead to the XX Commercial Bank for the trust fund. The trust fund management module  308  will calculate the balance of the investment. If the performance is steady and earns a 5% return, then the trust fund management module  308  will generate a total trust fund of NT $797,160 by adding the 5% return of NT $37,960 to the total bid amount of NT $759,200. Thus John can receive better financial protection from the growth of the investment. Though Min and Sue are divorced, Min still has to make periodic reimbursements each of NT $10,000 due to his bid, or else his mortgaged residence may be auctioned. 
         [0060]    Further if Min has not executed the divorce within the 7-year duration of the trust, and earns an annual return of 5%, then at the end of the duration of the marriage obligation fulfillment trust, Min can plead for a sum of NT $968,953 (759,200×(1+5%)̂5). Therefore, it is clear that the marriage obligation fulfillment trust of the present invention not only provides reliable protection to the beneficiary, but it also expands the credit of the consigner to enhance the gain of the consigner. 
         [0061]    Those skilled in the art will readily observe that numerous modifications and alterations of the device and method may be made while retaining the teachings of the invention.