Unknown Uses For IRA Checkbook Control Trusts

All IRA accounts can have a Checkbook Control Trust.

  • ​Traditional
  • Simple
  • Roth
  • Health Savings Account (HSA)
  • Education Account (Coverdale)

The responsible party could be making dramatic earnings for the future healthcare and education of children and grandchildren. They can also be making large gains in their own retirement accounts.

Qualified Pension Plans can also use a Checkbook Trust. They include:

  • Defined Benefit Plans
  • Individual 401(k) Plans
  • 403b Plans for teachers
  • 457 Plans for state and federal employees

These plans can be taken at retirement and rolled over to an IRA custodian. They can be then moved to an IRA Checkbook Trust and invested in real estate, notes, personal property, stocks, etc. Pension plan administrators often do not advise the retiree of their options. They direct them to the annuity amount that they will be receiving.

The retiree with the Checkbook Trust can usually outperform any annuity payments. When the retiree dies, his heirs inherit the assets of the trust. The retiree with the annuity leaves NO residual amount to his heirs. A major difference.

The availability of millions of non-performing mortgage notes has presented investment opportunities for passive investors. Large companies borrow money from hundreds of investors, offering them a preferred return of about 10%. They buy large packages of these notes at a major discount. They have staff people who arrange a workout with the buyer at a lower payment and/or a longer-term. These re-performing notes are offered to the investors at returns of about 12 to 14%.

The Supreme Court of the US ruled in June 2015 that borrowers could not escape second mortgage debt by declaring bankruptcy because the home had little or no equity. Improved market conditions and prices nationwide have increased the safety and performance of these junior liens. A whole industry of note buyers and rehabbers has emerged just as the industry of real estate investors and rehabbers was developed years ago.

There are many at investment opportunities for retirees that do not wish to own and manage real estate or notes. There are many safe and secure non-traded Real Estate Investment Trusts that pay 6.5% to 7% return. They also grow in value and pay down debt, if there is any.

I recently helped a retiring police officer move her $1 million retirement account to an IRA administrator. She then moved the money To a Checkbook Trust in her corner bank. She is now investing in real estate full-time and is outperforming the annuity by 100%.

Tell your family and friends about these opportunities.

Share with: