A lot of people are asking themselves what is a provident trust and what is the lawsuit process involved with such a lawsuit. Here are some basics that should get you started. First, let us explain what a provident trust is. Then we will describe how the lawsuit is handled in terms of a provident trust.
ASCAP Lawsuit From a Provident Trust Group
Details: – The name of the entity sued – referred to as “group-of-actors” or “self directed IRA” – the investment selected turned out to be a Ponzi Scheme – securities and exchange commission. Second, there is a trustee or custodian acting on behalf of the principal and collecting regular payments from the self directed IRA account. Once the principal dies or stops making payments, the trustee or custodian then makes the payments to the alternative asset owner who holds the payments in a separate account. In this way the principal is protected in the case of bankruptcy but has no control over the assets owned in the self directed IRA. This is why a provident trust is a very attractive option to protect one’s retirement funds.
There are two main ways in which this type of lawsuit occurs.
One would be a wrongful death suit brought by family members who died while the principal was alive. The other way would be an act of fraud or a fraudulent conveyance or distribution of a prohibited transaction. If it can be proved that the owner of the self directed IRA failed to give proper notice and instructions to the trustee and/or custodian as to the nature of the transactions, then the heirs of the deceased may sue for damages in the civil courts of the state. This is called a wrongful death suit.
Let’s take a look at a typical lawsuit in the provident trust group that occurs in the state of Nevada.
There was a family lawsuit in 2021 involving the care of a child who had been left unattended in a nursing home. The parents sued the facility and the individual owner of the self directed IRA in which the child lived. In order to avoid any lawsuit, the owner of the self directed IRA sent a letter to the trustee of the provident fund instructing the trustee not to make any payments to the individual. The trust company failed to make the required payments and negligently caused the death of the child.
This is a perfect example of the type of lawsuit that can occur in the state of Nevada.
There are many people in the United States who own retirement funds that are invested in self-directed IRA’s that are protected through the act of a provident trust. However, some of these self directed IRA’s may not be held in the best interest of the family who owns them. There is a new type of lawsuit called an ASCAP lawsuit filed by those relatives of deceased individuals who are owed regular payments by the self directed IRA.
It is important to note that there is a time limit on filing such suits in the state of Nevada.
If you are not able to repay your claim within one days, you have no chance of prevailing in the event that the self-directed IRA’s owner files an ASCAP lawsuit against it. If you lost your lawsuit against your self-directed IRA, you will have to repay the amount that you lost plus attorney fees.