Transferring Non-Cash Assets

by Kathy Werry, Funding Manager, uDirect IRA Services

 

Requirements for Transfer of Real Estate/Non-Cash Assets from Another Custodian

 

In order to effect a transfer of Real Estate/Non-Cash Assets from an existing IRA account, the following must be completed, by the account holder:

The Steps:

  1. Asset ID Form completed and submitted for review and approval with supporting documentation as it relates to the asset.
  2. Upon approval of the Asset ID Form:
    1. Fill out a Transfer Request Form and list the asset on the asset handling section of our transfer form.
    2.  Transfer Request Form will be submitted to us, and we will send it to the current custodian.
    3. Check with the local county in which the property is located in order to determine what requirements they may have for re-titling and re-recording of a new IRA custodian
    4. Check with the state of domicile for the property to determine if there are any special forms or other requirements to effect a non-economic interest transfer.

Note: In many states there are forms that relate to property transfers and property taxes.  In order to insure that this transfer does not trigger and transfer taxes, be certain to:

1) Check with state or local agencies to determine what forms may be required.

2) Insure that these forms reflect the current custodian’s name and our name as the new custodian.  Your Transaction Coordinator can provide instructions for proper titling.

  1. Complete any of the forms required above. In many cases a quitclaim deed can be completed and signed by the current custodian that is holding title. This form can usually be filed with the county recorder for the county of record.

Note: you may wish to retain a title company or legal counsel to assist you in this transfer.

  1. File the title transfer with the county recorder.
  2. The current custodian should provide us with an assignment of ownership letter or document where they formally acknowledge the transfer of title.

3.  Insure that we receive a recorded copy of the quitclaim deed along with the custodian’s assignment letter.

  •  In most cases, you will be able to have the recording sent to us directly
  •  Most custodians will send their assignment letter to us directly.
  1. Upon receipt of the assignment and re-recorded title, we will list the asset in your IRA account.

What not to do: 

  1. Do not sign the quitclaim deed or any of the other documents yourself, prior to reaching out to your Transaction Coordinator for further instruction.
  2. Do not assume that the current custodian will do any of these items based upon the receipt of the transfer request.  It is the account holder’s responsibility to have the asset re-titled and if applicable re-recorded into the name of the new IRA custodial account.  It is also the account holder’s responsibility to provide us with the final documentation (copies) verifying the change of ownership.

Requirements for Transfer of other non-recorded assets:

As with the above procedure, it is the account holders responsibility to have the asset re-titled and notify the Asset Sponsor of the change in title.

We need to have very specific information before sending the request.

  1. The account holder should contact the LLC or Partnerships to determine if they will allow ownership transfer. If they will allow, then they should determine if the investment has any special requirements, such as medallions, or forms that are required to effect the transfer of ownership.

On any assets that can be transferred as a result of item 1, then we need to get the following:

  1. Copies of documents for each non cash asset. This would include subscription agreements, notes, etc.
  1. Addresses, phone and contact names for the assets. We need to be able to contact the investment companies and provide notice of transfer of ownership. We need to get it from the account holders.

We can only accept requests for items that we know can be transferred, so please make sure your current custodian can accommodate.

For more information or for assistance, please contact our office at (866) 447-6598.

 

 

 

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