Escrow Basics: Who Should Hold the Money During a Surrogacy Journey?

Industry News

Nov 25

In surrogacy arrangements, an escrow account plays a crucial role in managing the financial aspects of the process. An escrow manager creates an opportunity for transparency, accountability and fair handling of funds throughout the surrogacy journey.

Here are some basics about who should hold the money in an escrow account and why:

1. Third-Party Escrow Manager: It is generally recommended that an independent third-party escrow agency manages the funds. This ensures neutrality and professionalism in handling the financial transactions related to the surrogacy.

2. Role of the Escrow Manager: The escrow manager acts as a custodian of the funds, holding them in a secure account designated specifically for the surrogacy expenses. They disburse payments to the surrogate, medical providers, and other parties as per the terms of the surrogacy agreement and upon receipt of appropriate documentation.

3. Ensuring Security and Compliance: An experienced escrow manager understands the legal and financial requirements involved in surrogacy arrangements. They ensure that all transactions comply with the surrogacy agreement, providing a layer of security for both the intended parents and the surrogate.

4. Neutrality and Impartiality: By using a third-party escrow manager, the financial transactions remain impartial. This minimizes potential conflicts of interest and ensures fair handling of funds throughout the surrogacy journey.

5. Transparency and Accountability: The escrow manager maintains detailed records of all transactions and could provide statements to the intended parents and surrogate. This transparency helps build trust and clarity regarding the financial aspects of the surrogacy journey.

Entrusting a third-party escrow manager with managing the funds in an escrow account provides a structured and secure approach to handling the financial aspects of surrogacy. It promotes transparency, accountability, and peace of mind for both the intended parents and the surrogate.