Online Educational Trust Creation and Management

Abstract

A system and method for creating and administering trusts over the Internet is disclosed. A grantor accesses a website over the Internet that is served by a trust account administration server, through which the grantor can fund the trust by way of an online payment or charge. The server checks the identity and creditworthiness of the grantor, and then establishes a trust account. The trustee and beneficiary of the trust are electronically notified of the trust. Through authorization of the trustee, tax information and returns may be filed electronically from the trust account administration server, and financial institution accounts can be established and managed. The trust account administration server can also electronically notify the beneficiary of any demand rights that arise for gifts to the trust, and can permit distributions of the gifts if exercised. The beneficiary can also set up a family home page, and solicit contributions from friends, family, and other parties, for example on gift-giving events. The trust can include educational accounts, such as Qualified Tuition Plan and Educational Individual Retirement Account accounts.

1 . A method of maintaining an account for a beneficiary, over a computer network, comprising the steps of:
 receiving, from a plurality of contributors over the computer network, authorization to electronically convey funds to the account;   for each authorization, receiving the conveyed funds in the form of electronic payments; and   storing, in an account database and associated with the account, information regarding the conveyed funds.   
     
     
         2 . The method of  claim 1 , further comprising:
 authorizing an authorized party to manage the conveyed funds in the account by commands communicated over the computer network.   
     
     
         3 . The method of  claim 2 , further comprising:
 responsive to online requests from an authorized party, establishing at least one investment account with a financial institution; and   also responsive to online requests from the authorized party, conveying funds from the account to a selected investment account.   
     
     
         4 . The method of  claim 1 , further comprising:
 authorizing an authorized party to manage the conveyed funds in the account by commands communicated over the computer network.   
     
     
         5 . A method of managing an educational account in a trust vehicle over a computer network, comprising the steps of:
 receiving, over the computer network, identification information regarding a trust, including a grantor, a trustee, and a beneficiary of the trust;   receiving, over the computer network, authorization to electronically convey funds to an educational account within the trust;   then storing, in a trust account database and associated with the trust account, information regarding the grantor, the beneficiary, and the conveyed funds;   receiving a response from the trustee, over the computer network, comprising confirmation that the trustee accepts trustee responsibilities for the trust;   electronically establishing an educational account naming the beneficiary as the beneficiary of the educational account; and   responsive to receiving a request from the trustee, over the computer network, to transfer funds to the educational account, electronically transferring funds to the educational account.   
     
     
         6 . The method of  claim 5 , wherein the computer network comprises the Internet. 
     
     
         7 . The method of  claim 5 , wherein the educational account comprises a Qualified Tuition Plan. 
     
     
         8 . The method of  claim 5 , wherein the educational account comprises an Educational Individual Retirement Account. 
     
     
         9 . The method of  claim 5 , further comprising:
 repeatedly receiving, over the computer network, authorizations to electronically convey funds to the educational account; and   responsive to receiving each authorization, electronically transferring funds to the educational account.   
     
     
         10 . The method of  claim 9 , wherein the authorizations comprise rebates from sellers of goods and services. 
     
     
         11 . The method of  claim 5 , further comprising:
 receiving a contribution request from a donor party over the computer network; and   receiving, from the donor party over the computer network, authorization to electronically convey funds from the donor party to the trust account.   
     
     
         12 . The method of  claim 5 , further comprising:
 receiving, over the computer network, a request from the trustee for a distribution of assets from the educational account;   receiving confirmation from the trustee that a purpose of the distribution is a qualified educational expense; and   electronically transferring assets from the educational account.   
     
     
         13 . The method of  claim 12 , further comprising:
 determining whether the distribution results in a tax liability.   
     
     
         14 . A method of managing assets to be used for the education of a beneficiary, comprising the steps of:
 establishing an account database entry corresponding to a tax-favored educational account;   establishing an account with an institution corresponding to the account database entry, naming a trust as the owner of the account;   transferring funds into the account; and   distributing funds from the account to the beneficiary.   
     
     
         15 . The method of  claim 14 , wherein the tax-favored educational account is a Qualified Tuition Plan. 
     
     
         16 . The method of  claim 14 , wherein the tax-favored educational account is an Educational Individual Retirement Account. 
     
     
         17 . The method of  claim 14 , further comprising:
 receiving, over a computer network, an authorization to electronically convey funds to the tax-favored educational account; and   responsive to receiving the authorization, electronically transferring funds to the tax-favored educational account.   
     
     
         18 . The method of  claim 14 , further comprising:
 receiving, over a computer network, an authorization to electronically convey funds to the trust; and   responsive to receiving the authorization, electronically transferring funds to the tax-favored educational account.