Third party escrow service providers 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.
Using a knowledgeable and compassionate company with experience is the key to simplifying complicated details and setting a peaceful tone to the financial aspect of the arrangement. Ally Escrow Management has years of experience in reading surrogacy and egg donation contracts and are experts in handling the unique financial needs of these processes.
What Is A Third Party Escrow?
Generally, a third party escrow service holds funds provided from one party to disburse to another party once certain contractual requirements have been fulfilled. These requirements can range from one-time events to a set of events over a period of time.
In our specific area of reproductive escrow accounts, a one time event example could be an egg donation cycle. The donor receives a one time compensation after the donation cycle is completed. An example of a set of events is what you would experience in a surrogacy journey, as the surrogate would normally get compensation payments throughout the pregnancy.
Using a third party escrow service (an entity who has no connection or interest to any of the conditions set forth in the contractual arrangements between the parties) minimizes potential risks and protect your assets as large amounts of money are moving from one party to another.
In this way, Ally Escrow Management helps make all transactions and the overall process more secure and stress-free for all parties involved.
What Is An Escrow Account?
An escrow account is an account that is held by a third party (the escrow provider) to assist in a contractual arrangement between a set of parties. The third party 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 a middleman to ensure that all parties fulfill their contractual obligations before releasing any funds. Ally Escrow Management receives funds from one party, disburses these funds to another party as indicated by the contract, and will close the escrow when all contractual obligations have been fulfilled, or when indicated by the original contract.
Why Use A Third Party Escrow
A third party escrow is an impartial party to the conditions set between the given parties. The third party escrow has no stake in the original agreement, but instead is invested in following the conditions set between the parties, can review the contract terms with fresh eyes and always remains neutral.
In this way, Ally Escrow Management safeguards the assets and privacy of all parties involved as well as ensures that all contractual agreements are fulfilled before releasing funds. And in a worst-case scenario, your funds will be safely returned if the agreed-upon obligations are not met by the other parties involved.
What Should You Look For In A Third Party Escrow?
We understand how overwhelming the process of surrogacy or egg donation can be. Whether you select Ally Escrow Management or another third party escrow company, 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?
- Are they experienced in the type of arrangement you need services for?
- Are they neutral? (not related to the other parties involved or in writing the contract)
- How do they protect your funds and privacy?
- Are they insured and bonded?
- Do they use only FDIC insured banks or an IOLTA?
- Are they responsive and communicative?
How Funds Are Distributed
All payment requests sent to the third party escrow are 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.
While we offer several different payment options based on the item that needs payment, how that payment is initiated would depend on your specific case. For cases using an Agency, the Agency representative provides the required information related to any invoices or reimbursements that need to be paid.
Your Agency representative also advises the third party escrow of events that cause your surrogate to need compensation based on the contract agreement. In the absence of an Agency, the Intended Parent becomes the main contact to provide this information.
Funds are distributed from the third party escrow account in several potential ways and Ally Escrow Management offers free direct deposit for Surrogates, free ACH payments for Agency reimbursements and Provider bills, as well as 24/7 online portal access with real-time balance, transactions details, and contract access.
When Do You Close Your Third Party Escrow
The third party escrow account will normally close based on the terms set forth in your surrogacy contract arrangement. Most of the time the contract language will set specific criteria defining when the escrow account can be closed, such as a lapse of time, a specific event to have occurred, or both.
For example, common language we see is “the earlier of 9 months from delivery or once confirmation all medical bills are paid.”
In some cases, there may be surprise billing that occurs after an escrow account is closed due to delayed hospital or medical billing. Most surrogacy contracts continue to keep the parents responsible for those bills even after the escrow account is closed.
Ally Escrow Management remains available even after escrow is closed to ensure all parties are satisfied and have fulfilled all obligations.
Protect Your Finances While Your Family Goes Through Surrogacy
Ally Escrow Management values being a trusted third party escrow service and we strive to be a real Ally in this process. Our goal is to provide compassionate and friendly service with the highest level of customer satisfaction.
We not only protect your assets and make accurate payments on time, but ensure this part of your surrogacy experience is the easiest and most efficient part of your family-building journey. Our dedication to your family is demonstrated by our high ethical standards, clear and concise information, and being there when you need us, from start to finish.
At Ally Escrow Management, we believe in not only top-quality dedicated service that is efficient, transparent and real time, but also in forming lasting relationships that will grow with you and your needs.