Work With a Custodian Who Embraces Alternative InvestmentsUnlike other custodians, you can manage all client assets, including Alternative Investments, on one Platform. We believe you as the advisor should have access to all the tools possible to manage your clients’ money, and let you determine which ones to utilize at any given time.
Wide Selection of Alternative Investments
Report on Both Alternative Investments and Standard Assets
Types of Alternative Investments You Can Custody With Equity
Private Stock Private LLC Private LP
Residential Commercial Real Estate Notes Tax Lien Certificates
Gold Silver Platinums Coins Bullion
Promissory Notes Deeds of Trust Structured Settlements Corporate Debt
(Real Estate Investment Trusts)
Alternative Investment FAQ's
Are there any tax consequences in a 'tax-deferred' retirement plan with Alternative Investments?
Some Alternative Investments produce unrelated business income tax (UBIT or UBTI) that may require special tax treatment. This would be reported to account holders on a Schedule K-1. The rules governing UBTI are published in IRS Publication 598. Your clients should consult your office or a tax professional to determine their Form 990-T tax reporting obligations.
Can your clients invest in an entity that he/she or his/her family member owns?
If your client’s IRA or Qualified Plan invests in an entity that he or she, or certain family members own or control (whether controlled individually or as an officer of a corporate general partner, managing member, etc.), the transaction could possibly be a prohibited transaction under Internal Revenue Code Section 4975. Equity Trust does not determine whether a proposed transaction is prohibited, but it may not process an investment that has characteristics typical of a prohibited transaction.
What is a prohibited transaction?
Internal Revenue Code Section 4975 defines a prohibited transaction as a transaction between a plan (your client’s account) and a disqualified person. In general, “disqualified persons” are defined to be the Account Holder, other fiduciaries, certain family members (lineal descendants and spouses of lineal descendants) and businesses under the Account Holder’s (or disqualified person’s) control. Please review the code for specific information and definitions. Other useful resources are Publications 560 and 590.