Self Directed Roth IRA

[Brian Pleshek]

My father has some annuities coming due this spring. A couple of them(his + inherited from his wife) are held inside Roth IRAs. It is my understanding that you can hold property inside a self directed Roth IRA. It is current I have a few questions.

How is the best way to set this up?  Currently the Roths are being held by an insurance company(who set up the annuities).

Does the self directed Roth need to be in a corporation(an LLC)?

Can the funds be used as a down payment such that he can purchase larger properties through leverage or does the entire property have to be purchased outright?

Does the rent go into the Roth each month?  Is it treated like an owner contribution?  If the rents are high enough or there are enough properties to generate sufficient income do I run into any issues with the maximum annual contribution to a Roth?

Is there an issue with paying the lien down early with outside funds?

He needs some of the rent money to live on. Is it like an owner draw from an LLC or if not, how does that work? Does he take it before putting it into the Roth when he gets the rent check?

Can the funds from the two Roths be combined into the new self directed Roth or must they remain separate?  If separate, can the two be partial owner of the same properties effectively doing the same thing?

Who is the best type of person to talk to about other details?  Estate lawyer?  CPA? Other?

Has anyone heard of American Estate and Trust?  We have been in contact with them and they seem to do this type of thing, but we wanted to check up on them as trustworthy and reputable.

Does anyone have a list of questions that I should ask any perspective company to make this happen ?

Thank you.

Brian