METHOD FOR DEVELOPING, FINANCING AND ADMINISTERING AN ASSET PROTECTED EXECUTIVE BENEFIT PROGRAM

摘要

A method is provided for developing, financing and administering an asset--protectedexecutive benefit. An employer or Investor makes an investment in an LLCwhereby the Employer or Investor becomes the preferred, non-managing memberand isentitled to receive a guaranteed payment plus pre-established rate of return.AnExecutive 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 excessof theamount paid to the preferred member. The LLC invests in, owns, and is thebeneficiaryof two life insurance policies; a Preferred Policy designed to have a deathbenefit equalto the investment plus cumulative guaranteed return to the preferred member,and anInvestment Policy designed to meet the long-term investment objectives of themembers.The Executive may instruct the LLC to borrow against the Investment Policyfrom whichthe Executive receives a cash distribution.