A surrogacy escrow service is a specialized funds holding and management service for the surrogacy process. It is critical that surrogates and intended parents use a surrogacy escrow service.
One of our priorities is to make sure that your surrogacy money is handled appropriately and securely through the surrogacy process. To ensure that your money is safe, Heart to Hands Surrogacy works with surrogacy escrow account/funds holding and management services (‘escrow’) that are licensed, bonded and insured to provide the best protection of the surrogacy funds.
Why Use a Surrogacy Escrow Service?
- Independent Third Party: A surrogacy escrow service is it’s own entity, and is not affiliated with your agency or attorney, or other surrogacy professional. Their only responsibility is to their clients. *
- Neutrality: A surrogacy escrow professional reviews all payment requests, ensures that payments are made according to the surrogacy terms, and resolves any potential conflict neutrally. This means you and your surrogate never have to talk about money, or worry that payments aren’t being made correctly.
- Protection: Licensed, bonded, and insured services provide peace of mind that your surrogacy funds are protected and secure. If there is a breach or a theft, the surrogacy funds can be recovered.
- Specialization: Surrogacy specific escrow services understand the unique needs of surrogacy, and focus solely on meeting the needs of people choosing surrogacy to grow their family.
- Documentation: Surrogacy escrow services keep detailed financial ledgers and require proof of requested payments. This helps with understanding exactly how money is spent on the surrogacy process.
*It may be appropriate, on occasion, for your attorney to hold escrow as long as there is a separate agreement for that service that indicates that it will be a neutral party.
How the Surrogacy Escrow Process Works
1. Opening The Account And Making The Initial Deposit
When intended parents accept a surrogate’s profile, Heart to Hands will connect the intended parents with their chosen escrow service. Opening the account is easy and if you need any help, let us know!
- The surrogacy escrow account is opened with an initial deposit of $50,000 USD.
- These funds will be used to make payment of agency fees, surrogate travel and screening costs, payments due to the surrogate, and possibly legal fees.
2. Funding The Account For The Surrogacy
Within 5 days of the intended parents and the surrogate signing the surrogacy legal agreement, intended parents must deposit twice the surrogate’s base compensation into the escrow account.
- If the surrogate’s base compensation is $50,000, the deposit would be $100,000.
- This deposit will be used to pay the majority of the surrogacy expenses.
The minimum balance of the surrogacy escrow account is $15,000. When the account is close to this minimum, an additional deposit based on the anticipated remaining expenses will be due.
3. Disbursements From Escrow
Payments from the escrow account are managed by the surrogacy escrow service according to the terms of the surrogacy legal agreement These payments can be requested by the agency or the surrogate and may include:
- Scheduled Milestone Payments to the Surrogate: Payments outlined in the surrogacy legal agreement that are based on specific milestones will be set according to a schedule. For example, monthly compensation is a scheduled milestone payment.
- Non-Scheduled Payments to the Surrogate: These payments are typically reimbursements or non-milestone payments and include things like medical visit co-pays, mileage reimbursements and per diem allowances.
- Third-Party Payments: These include attorney fees, agency fees, invoices from providers, or reimbursements to the agency for payments made on behalf of the intended parents.
5. Closing And Refunding The Account
Approximately six to 12 months after the baby’s birth (as stipulated in the surrogacy legal agreement), and once all financial and contractual obligations have been fulfilled, the surrogacy escrow account is closed and any remaining funds are returned to the Intended Parents.
Why Financial Transparency Matters
There are so many things to think about and worry about in a surrogacy process. Using a surrogacy escrow service ensures payments are made as they should, reducing stress and helping to maintain trust between everyone.
Have Questions? We’re Here to Help
We understand that surrogacy involves many moving parts, and we’re here to ensure the financial aspects are managed efficiently and securely. If you have questions about escrow services or fund management, don’t hesitate to reach out—our team is happy to assist.
Your surrogacy story is important to us, and Heart to Hands is committed to protecting your investment and providing an ethical, transparent and heartful experience.
