How Surrogacy Escrow Services Protect Your Clients
The surrogacy process has multiple stakeholders and lots of moving parts. Clear and concise guidelines are necessary for the sake of both intended parents and the surrogate. As an intermediary, a great escrow provider can make the process as painless as possible by providing you with the information and tools you need to have a great journey. While surrogacy is an emotionally charged process, our goal is to help lessen the strain you might feel with regard to the financial aspect of it all.
What is a Surrogacy Escrow Service?
A third-party surrogacy escrow agency is an independent group that is not affiliated with the intended parents, surrogate, or agency. The escrow account holds funds to be disbursed during the surrogacy process. It is similar to a homeowner’s escrow account that collects and distributes funds for insurance and tax expenses. A major investment needs a dedicated service to ensure timely, accurate, and legal payments.
The surrogacy escrow service will disburse funds from the intended parents to the surrogate as outlined in the surrogacy contract. The intended parents fund the escrow account at the beginning of the surrogacy process, and keep it funded throughout, so that the funds in the account can be disbursed as agreed upon to the carrier and her providers.
Benefits of Using an Escrow Service
There are multiple reasons why a surrogacy escrow service is beneficial. These include:
- Intended parents can focus on preparing for your new arrival instead of worrying about monthly payments, medical bills, and reimbursements.
- Build your relationship with your surrogate, without those uncomfortable conversations!
- Surrogates won’t have to worry about being out of pocket or waiting on a check.
- All parties and their representatives have access to reliable, timely information about payments, and an always up-to-date account statement.
- Escrow services can assist in answering questions and serve as an intermediary.
- Intended parents have access to all documentation and information necessary, all in one place, to seek reimbursement for their surrogacy journey should they have access to such benefits.
- An escrow service makes sure every disbursement follows the Gestational Agreement so you don’t have to, leaving one less thing to worry about for everyone involved!
Legal Risks You Can Avoid
There are several legal risks you can avoid when you use a surrogate escrow service, and you should contact your legal service to determine what laws and regulations apply to your specific situation. Some states, such as Illinois, require the use of third-party surrogacy escrow services. Laws change quickly, and using these services now can help you prepare for future changes.
One of the biggest advantages to using escrow services is having the meticulous documentation of all financial transactions all available in one place. Reputable third-party escrow services audit receipts and documentation for requests before making disbursements to a surrogate, providing accountability for both parties. Third-party escrow specialists can also help mitigate conflict between the parties by representing the Gestational Agreement’s terms in a non-biased way and helping each party understand the intent and purpose of such terms.
Pitfalls of Not Using an Escrow Service
- Uncomfortable conversations between parties about finances
- Possible delayed or missing payments to the surrogate and/or her providers
- Overpayments/Underpayments due to oversight
- Sudden unavailability of funds
- Misunderstanding of contractual agreements causing delay or dispute of payments
- Further legal expenses if attorneys have to be engaged throughout the process for clarification
Keep Your Surrogate Funds Secure with SEAM, LLC
Surrogacy Escrow Account Management, LLC is an established business with a stellar record for providing outstanding service to our clients. Our experienced and reputable oversight will provide intended parents, surrogates, and surrogate agencies with peace of mind. Let us take care of the accounting and payment disbursement process so you can focus on what matters most: growing your family.