Tag Archives: IRA

Self-Directed IRA & Qualified Plan Information, Self-Directed Traditional IRAs

I invested with crooks and was awarded a judgment but…

Question: In 1997 my bank rolled over $150,000 to a rollover account in florida. At this time the monies were stolen. I was awarded a judgment against the 4 persons that took the monies but have only collected $6,000 so far. If, and when I collect any or all monies, do they belong in my IRA account that they came from? And can a third party like a bankruptcy trustee access the judgment and any monies collected to pay off any creditors?

P.S.
I never did see or have control of these funds. They were transferred into a self directed IRA and stolen from there. I have been told that a bankruptcy trustee can not use these funds to pay off any creditors and any funds recovered should go back into my ira and if treated as a withdrawal it would be taxable event. If this true is their any law and or cases to support this?

Answer: With regard to your question below, it is somewhat difficult to answer without more information, and in any event the question is best answered by your bankruptcy attorney as well as the attorney who is helping you collect this judgment.  My first question would be who has the judgment, you or your IRA?  If you were the plaintiff individually, then the money collected may not be exempt from the bankruptcy estate since it isn’t in the name of your IRA, whereas if the judgment is in the name of your IRA it is may be exempt as an asset of your IRA, not you individually, depending of course on state law where you are as well as whether you chose state or federal exemptions in your bankruptcy.  Your attorney will be able to give you better information than I can.

The bottom line is that there are insufficient facts to really answer your question, and what you really need is legal advice from an attorney who has all the facts in front of him or her.  I’m sorry I can’t be of more assistance to you.  Good luck in your future endeavors and thanks for the question.

 

Health Savings Accounts, Self-Directed Traditional IRAs

Real Estate Options Contracts In An IRA

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Question:

I received a copy of the Notes from the Options seminar and in section II “Types of Options” you mention using an option with a Deed in Escrow. My question is would the Deed held in Escrow be signed/executed by the seller and buyers just as I would find any other typical deed in the county land records (of course it would not be filed).   If the option is not exercised, is the deed simply torn up or is there a clause in the Deed that nullifies the Deed if the Option is not exercised…  And with IRA’s and HSA’s, would the escrow agent/company be Quest IRA, Inc…or any agreed upon third party escrow agent?

Answer:

Yes, the deed would be signed, notarized and escrowed.  The deed in escrow language outlines the procedure.  Since Quest IRA, Inc. in this case is only a representative of your IRA we would not be an appropriate escrow agent.  You would need to find an independent third party such as an attorney.

Follow Up Question:

Is the deed in escrow language found in the Option or in a separate document separate from the deed.  And does the language govern the signed deed whether the deed is good(valid) or not based on the Option being exercised?   And if not valid, does the signed deed get shredded by the escrow agent?

Follow Up Answer:

Ultimately it is up to you and your lawyer to decide how to handle it.  On our options disk of forms, which are for example purposes only and are not to be confused with legal advice, I have the attached examples of additional paragraphs you might or might not want to include in your option agreement.  The deed in escrow is paragraph 5.

I sense that you are seeking absolute answers on options.  Unfortunately there are none.  Options are simply too flexible.  You have to structure the option for the way you want to use it. 

If you are interested in purchasing the disk, please contact Ryan Kimura in our Dallas office.  He can help you out.