Estate Disposition Modeling with Tax and Liquidity Analysis
Find Innovative SolutionsGenerate Solutions
Solution Overview
Problem
Existing estate planning tools lack the flexibility and capability to comprehensively visualize the complex flow of assets and liabilities over time, failing to adequately combine tax analysis with clear visual depictions of estate disposition and estimate potential liquidity deficits, which can lead to significant tax liabilities for beneficiaries.
Innovation Solution
A computer-implemented method and system for modeling estate disposition that receives balance sheet and estate document inputs, estimates tax liabilities, generates flowcharts, and provides liquidity analysis reports, allowing for customizable graphical visualization of asset and liability flows, tax implications, and potential liquidity deficits, thereby enabling better estate planning and management.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Ease of manufacture
If conventional estate document generation software is used, then users can generate wills and trusts documents, but the software does not provide comprehensive view of eventual financial impact or tax implications
Solution Approach 1:
The patent combines document generation functionality with financial impact analysis, tax calculation, and visual flowcharting into a single integrated estate planning system. This merging allows users to simultaneously create legal documents while automatically generating comprehensive financial projections and visual representations of asset flow, eliminating the need for separate manual analysis tools.
Solution Approach 2:
The estate planning software performs multiple functions including document generation, tax liability estimation, liquidity analysis, and visual flowchart creation within a single system. This multi-functionality ensures that users receive comprehensive financial impact information without needing to switch between different tools or perform manual calculations.
2Adaptability or versatility
If wealth advisors use generic flowcharting software, then flowcharts can be created, but significant effort is required and customization is limited
Solution Approach 1:
The system pre-configures flowchart templates and visual elements that automatically populate based on the estate plan data. This preliminary preparation allows flowcharts to be generated instantly when needed, rather than requiring advisors to manually create them from scratch each time.
Solution Approach 2:
The patent uses automated copying of estate plan data into standardized flowchart formats. The system extracts relevant information from the estate documents and automatically replicates it in visual flowchart form, preserving accuracy while eliminating manual transcription effort.
3Productivity
If prior art solutions like Estate Planning QuickView are used, then basic charts and graphs are generated, but the solutions lack flexibility and extensibility for complex estates
Solution Approach 1:
The patent implements dynamic flowcharts that automatically adjust and reconfigure based on the complexity and specific characteristics of each estate plan. The visual representations can adapt to different estate structures, tax scenarios, and beneficiary arrangements, providing both speed and flexibility simultaneously.
Solution Approach 2:
The system allows users to modify various parameters in the estate plan and automatically recalculates financial impacts and updates visual flowcharts accordingly. This parameter-driven approach enables rapid exploration of different planning scenarios while maintaining comprehensive analysis capabilities for complex estates.
4Measurement precision
If manual tax analysis is performed for complex estates, then detailed tax implications can be identified, but the process is time-consuming and difficult to reconcile with visual depictions
Solution Approach 1:
The patent merges tax analysis calculations with visual flowchart generation in an integrated system. The same data model that drives tax liability estimates also automatically populates the visual representations, ensuring consistency between numerical analysis and graphical depictions without requiring separate manual processes.
Solution Approach 2:
The system provides automatic feedback loops where tax analysis results immediately update the visual flowcharts, and users can adjust estate plan parameters to see real-time impacts on both financial calculations and visual representations. This feedback mechanism simplifies the reconciliation process by making it automatic rather than manual.
Data Source
AI summary
A system and computer-implemented method for modeling estate disposition are disclosed. One embodiment receives balance sheet inputs, estate planning document inputs and timing/event inputs. Conveyance and tax logic are applied to the inputs. Flowcharts illustrating the disposition of the estate based on the inputs are generated. Tax and liquidity analysis based on the inputs are also generated.