What is an IRA Checkbook Control Trust (iTrustSM)?
An IRA with a Trust, referred to after this as "iTrust", is a special purpose trust, which is either fully or partially owned by a self directed individual retirement account (IRA). Since the self directed IRA owns the iTrust, IRA funds can be legally transferred to the iTrust in exchange for Trust Certificate units (i.e. like shares) of the iTrust. After this funding, both traditional and non-traditional investments may be purchased by the iTrust instead of directly in the IRA.
The use of this type of structure enables the IRA to have investment and checkbook control over the IRA.
IRA Checkbook Control Brochure
IRA Checkbook Control Presentation
The Self Directed IRA Benefits:
- Very few IRA custodians permit direct ownership of real estate or other non-traditional investments in an IRA, so indirect investment via the iTrust is usually the only choice.
- When an iTrust sells real estate or other investments, the capital gains are deferred through the IRA, like any other IRA investment. The headaches of 1031 exchanges are never necessary.
- Ownership of the property in an iTrust allows you, as investment manager, to have direct, hands-on control of and investment decisions over iTrust assets, including control of the checkbook. Custodian involvement and hassles are minimized, regardless of whether the investments are in securities, real estate or other assets.
- An iTrust can use its IRA funding as a down payment for a real estate purchase, with the iTrust financing or borrowing the balance. But an IRA usually cannot directly participate in such a financing arrangement because of the custodian.
- Since you control and handle all iTrust transactions, the custodian for the self directed IRA can be paid an inexpensive, flat fee, typically around $200 per year
- Litigation threats which accompany investments such as real estate are substantially reduced. This is done by isolating the investment inside the iTrust, and away from the rest of your IRA funds and estate.
- Continues to provide deferral of income and gains inside the IRA.
Strategies for Using the iTrust
- Purchase real estate
- Loan to others
Note: There are some restrictions and rules for this type of transaction - Buying or starting a business
Note: There are some restrictions and rules for this type of transaction - Use purchase options on real estate
- Flip properties
What Your Plan Comes With
- Setup of Trust
- Setup and operating guide
- Banking authorizations for checking account
- Handling your rollover to our sister co. American Estate & Trust, the IRA custodian
- Unlimited consulting
Why an iTrust vs. LLC
- iTrust does not have state filing fees*
- iTrust avoids state franchise taxes*
- iTrust is quicker to form and set up
- No name reservation issues
- Lower total cost of ownership versus a LLC
* For most types of iTrust investments
IRA Checkbook Control Trust Brochure
IRA Checkbook Control Presentation
For more information on the iTrustSM IRA Checkbook Control Trust product.
Call one of staff advisors at (801) 266-9900, or to request that someone contact you, send an instant email message by submitting the information below.