Third party escrow agents are beneficial partners in carrying out the requirements involved with complex transactions that are often found in surrogacy contracts. The uniqueness and details of surrogacy agreements deserve an experienced eye and care from a neutral third party escrow agent.
Ally Escrow Management is an experienced third party escrow agent in handing those unique financial requirements.
What Is An Escrow Agent?
A third party escrow agent is a person or entity responsible for an escrow account in their custody, but with the ability to maintain impartiality throughout the time they handle the escrow account.
This third party escrow agent assists in managing both the funding and disbursements related to a contractual arrangement between a set of parties. The escrow agent receives and disburses money on behalf of one party to another party (or parties) after conditions that were agreed upon between the parties have been met.
The escrow provider acts as an intermediary to ensure that all parties fulfill their contractual obligations before releasing any funds.
For example, Ally Escrow Management, as the escrow agent, would typically receive funds from an intended parent(s) and disburse these funds directly to the surrogate, egg donor, medical, or legal professional per the terms set within the legally binding agreement.
Once all the terms have been met, all bills have been paid, and the time limit set forth in the original agreement has been met, any remaining fund are returned to the intended parent(s).
What Escrow Means In Surrogacy
Having an escrow account for your surrogacy journey means that you are providing the funds needed to meet the financial obligations expected during your surrogacy journey. A specific account, separate from your personal funds and managed by an impartial third party is the best way to proceed for this purpose.
This account can give all parties involved a piece of mind knowing that specific funds have been allocated for the journey and will be available for disbursement at the proper times by a trusted third party escrow agent.
The third party escrow agent should follow the financial terms set in the surrogacy contract that has been legally agreed upon by the intended parent(s) and surrogate.
Legal Protection and Guidance
An experienced third party escrow agent is a vital key to a financially organized surrogacy journey. Your third party escrow agent should be a constant guide and consultant to you throughout the time you work with them.
This third party escrow agent should work to keep you, as the intended parent(s) in compliance with the legal terms set between you and your surrogate.
Your third party escrow agent should:
- Make sure your account is funded to the levels you are legally required to have.
- Keep you abreast to any situations that could cause an increase to the anticipated funding due to an infrequent or emergency event. Some examples of this could be an unexpected early bed rest or emergency medical visit.
- Discuss with you if there are discrepancies within the contract language.
- Inform you of any contract language misunderstandings with your surrogate.
Fair And Timely Disbursement Of Funds
All payment requests or event notifications sent to the third party escrow agent should be reviewed for validity based on the documentation presented and then compared to the binding contract to confirm it follows the terms of the contract arrangement before any funds are disbursed.
This would apply for things paid to the surrogate directly or for other providers involved with the process like the agency, attorney, medical providers, etc. All payments should be timely and documented thoroughly.
Why Do You Need An Escrow Agent?
The surrogacy process is already a mentally and emotionally taxing experience. As an intended parent, you already have plenty of things on your mind and steps to go through without adding the stress of handling each financial aspect of your surrogacy arrangement on your own.
Having a third party escrow agent in your corner is one of the best stress relievers you could add. A third party agent is a great way to remove the emotional aspect from the financial obligations.
The third party escrow agent can stay impartial and stick to the terms of the contract unless the intended parent directly asks to go above and beyond what they have legally agreed to already do.
The Need For An Impartial Third Party
You need a trusted third party escrow agent to not only protect your physical funds, but you need someone who is impartial to the process that can be objective and honest with what is in the surrogacy agreement and what it means for the intended parent(s) and the surrogate.
Your third party escrow agent needs to be impartial to properly apply and follow the contract terms.
The Need For Their Experience
A third party escrow agent experienced in reading and applying surrogacy contract terms is invaluable.
Your third party escrow agent should be able to explain what the language in your contract means, how it applies to your journey as milestones are reached, and more importantly be able to help resolve any potential misunderstandings or know when your attorney may need to clarify intent.
How Escrow Agents Handle Surrogacy Arrangements
The first thing your third party escrow agent should do once they receive a copy of the legally binding contract between you and your surrogate is to abstract all the financial terms set forth in that agreement to help prepare them to do their job for you at the highest fiduciary standard.
During this abstraction, your third party escrow agent should be able to identify and bring to your attention any contract language that may be conflicting or needs further clarification from your attorney on the intent.
Enforcement Of The Surrogacy Agreement
By reading the surrogacy agreement the third party escrow agent should be able to identify all the conditions needed for every single financial event that could potentially transpire during your surrogacy.
This will allow the third party escrow agent to, on your behalf, enforce the terms of the arrangement as conditions are met from the start to the completion of your surrogacy.
Holding And Managing The Escrow Funds
Your third party escrow agent shouldn’t just say they are holding your funds. Your third party escrow agent should be actively managing your funds and doing so transparently.
All payment requests or event notifications sent to the third party escrow agent should be reviewed for validity based on the documentation presented and then compared to the binding surrogacy agreement to confirm it follows the terms of the contract before any funds are disbursed.
Making sure your escrow balance stays at the appropriate and legally required level is also a key function to managing your escrow account. Your third party escrow agent should be able to provide you with your current balance and support documentation for any transaction at any time.
Account transparency helps to ensure that your money is being handled legally and ethically.
Working For The Interest Of Both Parties
While the third party escrow agent is hired by the intended parent(s) to manage escrow funds and to make timely payments for any transactions stemming from their surrogacy agreement, there is a large piece of the escrow puzzle that doesn’t get openly spoken about enough.
The intended parent(s) are also hiring that third party escrow agent to remain impartial and to make sure the surrogacy agreement is fairly applied to both parties.
What does this mean?
The intended parent(s) do not want their surrogate constantly stressing over payments getting made accurately and timely. It is in the intended parent(s) best interest that their surrogate remain as stress free as possible while carrying their child, so they are expecting their third party escrow agent to work in the best interest of both parties.
If any questions arise on behalf of either party, the agent should be able to answer them honestly and fairly. The third party escrow agent is committed to sharing their experience, knowledge, and professional courtesy to both parties for every surrogacy escrow account they manage.
How To Choose An Escrow Agent You Can Trust
Determining if a third party escrow agent is the one you can trust, and will provide you a sense of security while they are managing your funds can be an overwhelming hurdle to jump.
Whether you select Ally Escrow Management, or another third party escrow agent, there are a few things you should keep in mind while looking for the best fit for you:
- Are they licensed and responsible to an ethics board, such as a CPA or Attorney, that holds them to a higher fiduciary standard?
- Are they experienced in reading and understanding surrogacy arrangements?
- Have they been involved in resolving conflicts with surrogacy arrangements?
- Are they neutral? (not related to the other parties involved or in writing the contract)
- How do they protect your funds and your privacy?
- Are they insured and bonded?
- Do they use only FDIC insured banks or an IOLTA?
- Are they responsive and communicative?
- Do they provide details for every transaction at any time?
Work With The Most Experienced Third Party Escrow Agents For Surrogacy
Ally Escrow Management devotes themselves to having the most experienced third party escrow agents available for your surrogacy needs.
We work with the highest standards of transparency, trustworthiness and oversight in managing escrow funds and complying with contractual agreements when it comes to surrogacy arrangements.