A surrogacy escrow service is a specialized funds holding and management service for the surrogacy process. It is critical that you and your intended parents use a surrogacy escrow service.
One of our priorities is to make sure that surrogacy money is handled appropriately and securely through the surrogacy process. To ensure that, 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 business, and is not affiliated with your agency or attorney, or other surrogacy professional. Their only responsibility is to you and the intended parents. *
- Neutrality: A surrogacy escrow professional reviews your surrogacy legal agreement, 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 intended parents 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 the 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. They know what is normal and understand what is written in your surrogacy legal agreement.
- 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 intended parents’ attorney to hold escrow as long as there is a separate agreement for that service that indicates that the escrow service be approached as 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. The intended parents choose which service they will use before the match is finalized, so it is their choice which service to use.
- 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, your travel and screening costs, payments due to you, and possibly legal fees.
2. Funding The Account For The Surrogacy
Within 5 days of you and the intended parents signing the surrogacy legal agreement, intended parents must deposit twice the base compensation into the escrow account.
- If your 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 your or by your case manager and may include:
- Scheduled Milestone Payments: 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.
4. 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 the financial aspects can be confusing. 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 surrogacy experience and providing an ethical, transparent and heartful experience.
