SDIRA Custodian Protection from Bankruptcy?

[Larry Varnado]

Hi,

New to SDIRA and researching before plunging in.    Reading everything i can get my screen on.   One question that i've not found answered:

Suppose i move forward and set up a SDIRA LLC with CheckBook Control. I assume the Custodian is a legit company from your list of providers, and the LLC is setup to keep the funds with a large well-known financial institution. Further suppose i purchase a rental property, fix it up, get tenants, and return the rent into the LLC account, everything done legally and things are going great.

Until (god forbid) my Custodian Company turns out to be a scam, a la Bernie Madoff.   They're sued and go bankrupt.   My question now is, what happens to my account?   Could i lose the property and my cash, or do i just move to another custodian (how hard is this to do?).  What kinds of records do i need to keep, in case this sort of thing happens?

Sorry to be such a pessimist but i have to know.

Thanks