IRA Custodians

Following is a list of IRA custodians. There are probably more and you can search the Internet for others. With the trust approach that we use, location is not important since you only deal with the custodian rarely. Since they do not get involved with individual investments, there should be only one annual fee.

It is important to send your proposed trust, completed and approved by you before you open an account and fund it. If they object and want attorney letters, major changes or other restrictions, just choose another custodian. I deal with many people that use various custodians. I have personal experience with Entrust and Equity Trust and know that they operate with our trust, as do some other custodians. I am told that some are not in favor of the trust approach because they want to hold your funds. Most custodians do not pay any interest.

Companies
uDirect IRA Services, LLC
(714) 460-5505
Orange County, CA

IRA Resources, Inc
858 459-1212
La Jolla, CA

Sterling
800 955-3434
Waco, TX

Trust Administration Services Corp
800 455-9472
Carlsbad, CA

Equity Trust
440 323-5491
Elyria, OH

Polycomp Admin Services
800 952 8800
Roseville, CA

Pensco
800 969-4472
San Francisco, CA

Entrust Administration, Inc
800 392-9653
Offices nationwide

Guidant Financial Group, LLC
888-IRA-XCEL
Lincoln (now called Fiserv)
800 521-6974
Denver, CO

http://www.iraservices.com
650 593-2221
San Carlos, CA

Trust or LLC?

A Comparison of a Trust with an LLC

Feature

Created by the state

Fee for creation

Annual fee

Public record of principals

Annual report

Registered agent

Checkbook control

It is obvious that the trust is the superior choice for holding
your IRA funds privately, safely, and inexpensively. Another
advantage of trusts is the unfamiliarity in the marketplace.
The public, attorneys, bureaucrats, and every type of curious
person or entity are unsure of how to acquire information
about the trust or its beneficiaries.

For these reasons, and many more we recommend land
trusts, personal property trusts, and the IRAs hybrid trust for
holding title to property, options, notes, mortgages, deeds of
trust, mobile homes and every other type of personal or real
property.

Approval of Trust before Moving Funds

Send the draft trust at the end of this report, or a completed copy with the correct names, open quotation etc. to your prospective custodian. It should be accompanied by a letter stating that you “have read and approved the trust and are not seeking legal advice”.

You could fill in a blank in pencil with preliminary trustees, beneficiaries, addresses and other information. The custodians are concerned about the exact terminology of
them as “Administrator” and the proper vesting of the IRA account.

Consideration should be given to your successor beneficiaries and to successor trustees. Unless your trustee is a Corporation or other entity that will not die, you should
name a trusted friend or relative to be a successor trustee so that the operation of your IRA is not impaired upon the death or disability of your trustee.

If your prospective custodian has minor modifications or constructive suggestions that you can implement, you can agree. If they require major modifications or a legal opinion from your attorney, you should choose another custodian.

Choosing a Trustee

Trustees by definition must be trustworthy. This person or entity will be able to sign checks and be able to deplete all funds from your accounts. You can protect yourself in various ways. You may have two trustees and both are required to sign. That may be cumbersome. You might take personal control of the checkbook and have them sign one check at a time, as you require. You could act as trustee on their IRA account. A fidelity bond is not a good choice for protection. Often, a felony conviction must be obtained before collecting on a fidelity bond. You, the beneficiary, should not be a signer on any account.

Get an EIN Number

On the Internet go to IRS.gov on the opening screen on the
left check “ on line service”
1) Choose apply for EIN number
2) Choose apply on line now
3) Choose trust
4) Choose irrevocable
5) Choose beneficiary
6) Use the name and Social Security number of the
beneficiary.
(Notice on page 3 of the W9 instructions, Note
1, “the following payees are exempt from backup withholding:
any IRA”
7) Use the name and address of the trust and the trustee’s
name.
For example, The Sierra Growth and Income Trust,
Mary Jones, trustee
8) Check all data and if correct, submit.
9) Choose deliver by Adobe. You will have the number
immediately and the whole process should take less than 10
minutes.

Open Bank Account

Have your trustee take the number and open an account in the name of the trust with the trustee or co-trustees as signers. The checks should be printed “The Sierra Growth and Income Trust”.

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