If my IRA real estate trust company went bankrupt and the acquiring company wants me to pay for re-registration in the new company’s name, is that legal?

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If my IRA real estate trust company went bankrupt and the acquiring company wants me to pay for re-registration in the new company’s name, is that legal?

I have 2 pieces of real estate held in IRA self directed trust. The trust assets were acquired by another company. The title needs to be changed on the properties to the new company’s name. Why should I have to do this? Isn’t that their problem? I had no part in the bankruptcy or the acquisition. What happens if I do nothing?

Asked on August 30, 2012 under Real Estate Law, California

Answers:

FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 8 years ago | Contributor

If the acquiring company desires that yoiu pay some registration fee for your IRA accounts to now be with it as opposed to the former company overseeing your account that went bankrupt, such request is allowable under the laws of all states in this country. Your option is to either pay the requested fee or move your IRA account to some other brokerage company. Perhaps the threat of moving your account will cause the new company's representative to waive the requested fee concerning your assets.


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