Co-Manager vs Successor Manager


Co-Manager vs Successor Manager

What’s the Difference?

Once you decide that a Self Directed Check Book IRA LLC is right for you there are many things to consider.  Which State to form your LLC, what to name your LLC, which accounts to rollover or transfer to your new IRA.

But choosing the Manager(s) for the LLC is a very important step that is often overlooked.

There are two basic Manager positions in the IRA-LLC.  Manager (or Co-Manager if there are more than one) and Successor Manager.

Managers and Co-Managers – the IRA holder should always be the Manager of the LLC but others can be added as well.  Other Managers, or Co-Managers, can be anyone over 18 since they will need to be able to transact business and sign legal documents.

Spouses, children, parents are prohibited parties ONLY when taking investments into consideration.  They are NOT disallowed as Managers.  Once the Managers of the LLC have been named and the setup is complete they may act independently of one another in making investments, etc.

Successor Managers – anyone 18 or older may be a Successor Manager.

The Successor Manager has no duties, responsibilities or authority UNTIL the Manager(s) is (are) either incapacitated or deceased.  The Beneficiaries of the IRA can listed as the Successor Manager if you wish.  It’s not required and depends on your personal preference.

If your IRA-LLC setup is already complete and you did not name a Successor Manager, you can easily add one by creating an Addendum to your Operating Agreement.

Given the uncertainties of life, we highly recommend naming at least one Successor Manager to your account.  This will help avoid any lag time in your investments, and is an especially important consideration if you have time-sensitive investments such as rental property.

Contact Us

    Name *

    Email *

    Phone *

    How can we help? *