QUESTION: Mr. Long, I’ve reviewed the webinar on self directed IRAs. Simple but possibly offensive question, Entrust is the “trustee” similar to Charles Schwab… If you go out/defunct, what happens to my money/assets that you are administrating?

ANSWER: Actually, the question is not offensive at all.  In fact, it shows that you are the type of person for whom a self-directed IRA works best – someone who is careful and does his homework before making an investment decision.

To start with, we have changed our name from Entrust Retirement Services, Inc. to Quest IRA, Inc. as of December 1, 2011.  As of January 1, 2012, we will no longer be a franchise of The Entrust Group, Inc.  I have attached our announcement letter which explains this for your information, so I won’t type what’s in the letter again in this email.

Our role is not as the trustee or custodian, but rather as the third party administrator, serving as the agent and nominee of the custodian, First Trust Company of Onaga (FTCO), a Kansas trust company.  For over 30 years accountholders have trusted First Trust Company of Onaga (FTCO) as their custodian of Self-Directed Custodial Accounts.  FTCO serves as custodian for over 80,000 accounts with a market value in excess of $7 billion.  FTCO works extensively with IRA Administrators like us to provide superior service for Individual Retirement Accounts, Health Savings Accounts and Educational Savings Accounts.  I have attached a .pdf of the Kansas Secretary of State where you can find information on FTCO, as well as a Certificate of Good Standing for Quest IRA, Inc. for your reference.

So there is a significantly sized custodian who is backing us up and watching over what we do, as are their regulators indirectly through their examination of FTCO.  Additionally, we are required to have fidelity bond coverage and errors and omissions insurance.  Finally, our custodian requires us to have a Business Continuity Plan which includes not only disaster recovery planning but also succession planning in case of the death of the owner of the company (which is me).

We have been doing business now for 9 years, and have grown tremendously in assets and in number of accounts.  We have approximately 36 employees in 2 states, and we are growing all the time.  When you say “if you go defunct” please remember that your IRA assets are held separately at all times from our company assets, so if Quest IRA, Inc. goes defunct it does not mean that your assets disappear.  Instead, either the custodian or another administrator would come in and take over administration of your assets.

I certainly applaud your wish to do your due diligence before entrusting us with your hard earned retirement dollars.  I believe we have the strength and stability to operate successfully for many years to come, especially with FTCO as our custodian.  As has been seen from some of the turmoil of recent years, the size of the firm does not necessarily guarantee security, but I believe Quest IRA, Inc. is as steady of a company as there can be.

If we can help you with your self-directed IRA needs, please let us know.  I wish you happy holidays, and a healthy, happy and prosperous 2012!

Dear Client:

The French classical author François de la Rochefoucauld once wrote “The only thing constant in life is change.” In our case, change has come to Entrust Retirement Services, Inc., and we are very excited about it!

So what has changed? First, our name will change from Entrust Retirement Services, Inc. to Quest IRA, Inc. as of December 1, 2011. This means that you should begin titling all of your IRA assets as follows beginning December 1, 2011: Quest IRA, Inc. FBO [Account Holder Name] IRA #[Account Number]. After December 31, 2011 we will no longer be able to process new investments titled in the name of Entrust Retirement Services, Inc.

Please notify everyone involved with your current IRA assets of the name change and ask them to update their records. This may include persons who make payments to your IRA on a monthly basis, vendors, partnerships, limited liability companies, and any assets for which the name can be updated without an undue burden on you. Effective December 1, 2011 please make all checks payable to Quest IRA, Inc. Please note that you are not required to re-title assets such as real estate, deeds of trust or mortgages, or other recorded assets. Our tax identification number will not change, as this is only a name change and not a separate new company.

Second, as of January 1, 2012 we will no longer be affiliated with The Entrust Group, Inc. The decision to separate from The Entrust Group franchise system was reached by a mutual agreement between Entrust Retirement Services, Inc. and The Entrust Group, Inc. We feel that operating independently will allow us to achieve more efficiency in our processes and improve customer service. For example, all checks and wires will be issued out of Icon Bank of Texas, a local Houston bank, instead of out of California. Additionally, our marketing efforts will no longer be restricted to the state of Texas as they generally have been in the past. There will be many improvements to our systems over time, and we ask for your patience during this transition. Our new website will take some time to fully implement, but our staff will be here to assist you and get you what you need, including forms or account statements.

Third, we have updated all of our 5305 Custodial Account Agreements. Enclosed you will find the new 5305 which governs your account with us. An updated Fee Schedule is also enclosed, with some minor changes and updated disclosures. The changes to your 5305 Custodial Account Agreement and the Fee Schedule will apply to your account as of January 1, 2012.

What has NOT changed is our commitment to great customer service. The same staff that you already know will be here to serve your needs, and new staff will be added as we make the transition into an independent company. Additionally, the custodian for your account, First Trust Company of Onaga (FTCO), is not changing. The only change involving the custodian is that we will have a direct relationship with FTCO as a third party administrator instead of operating through The Entrust Group.

Also enclosed is our annual request for Fair Market Valuation, which is required by the Internal Revenue Service. Please complete the form and return it to us with substantiation attached by no later than January 16. 2012. More information about the fair market value requirement is available on the attached instruction letter.

Thank you again for the opportunity to serve your retirement account needs. We appreciate your business, and look forward to serving you for years to come. Please do not hesitate to call us if you have any questions.

Sincerely,

H. Quincy Long President