Patent ID: 8909540

Claim:
A computerized method for providing participants of a trust a protected annual distribution amount (PADA), using a balanced fund account (BFA) and an income protection account (IPA), the IPA including hedges, the BFA and the IPA each having a value at a given time, the method comprising: a. receiving capital market variables and inputs; b. using a computer processor running software on a computer readable medium to use at least the capital market variables and inputs to calculate an IPA claim fair value and hedge ratios, the IPA claim fair value and hedge ratios based on the PADA; c. determining that the IPA claim fair value differs more than a certain amount from the value of the IPA, and adjusting the PADA such that the IPA claims fair value is equal to the value of the IPA; d. recalculating the IPA hedge ratios to reflect the adjusted PADA; e. rebalancing IPA hedges to reflect the recalculated IPA hedge ratios; and f. causing payment of the PADA to be made.