As a surrogacy agency, you take on an incredibly meaningful and complex responsibility – guiding intended parents through the intricate process of building their families through surrogacy. Legal, medical, emotional, and financial elements must all align for surrogacy journeys to succeed.
One of the most critical aspects agencies must get right is management of intended parents funds in escrow. However, handling finances in-house or through attorney-held escrow can expose your business to substantial liability and erode client trust if issues arise. The wise choice is partnering with an experienced independent third-party escrow provider.
Here’s a closer look at why outsourcing escrow services to a specialized provider like SeedTrust is the best decision for surrogacy agencies:
Avoid Conflicts of Interest
When an escrow provider controls both the legal facets and the finances of a surrogacy journey, it inherently invites dangerous conflicts of interest. Intended parents may rightfully question whether guidance is colored by financial motivations. Independent third-party escrow eliminates this concern by completely separating financial management from legal counsel and agency services. Your advice can remain objective and sound.
Unlike an escrow agent directly affiliated with an agency, law firm, or clinic, independent third-party escrow providers have no vested interests in the arrangement. Their sole duty is to act as fiduciaries, adhering strictly to the provisions outlined in the Gestational Surrogacy Agreement (GSA). This ensures that funds are disbursed fairly and transparently, without any favoritism or bias.
In contrast, in-house escrow agents are obligated to prioritize the interests of their employer and whoever that employer represents. This poses potential problems should disputes arise or funds require reallocation. Their loyalty is divided.
Greatly Reduce Liability and Risk
It is essential for escrow providers to oversee your surrogacy journey, dedicated to safeguarding personal and financial information.
Mismanaged funds and escrow account errors represent massive legal and financial liability for surrogacy agencies. Just one mistake could be significant risk for your business and reputation. Specialized providers like SeedTrust accept 100% accountability for safely overseeing the escrow process through a $40 million bond and additional insurance protections. Our role reduces your liability substantially.
When a request is submitted for disbursement of funds at SeedTrust every single detail is reviewed by our trained escrow managers. There is a 5-step, multi-team review before anyone receives funds to verify and maintain the most stringent level of internal checks and balances.
Strengthen Competitive Advantage
The surrogacy industry was valued at $14 billion in 2022, and set to more that 9x to over $129 billion in the next 10 years. We are seeing increased participation by big institutional investors.
In this booming industry, intended parents have more choice than ever before. As competition increases, you must differentiate your agency however possible. Offering secure, independent third-party escrow managed by trained specialists through our state-of-the-art Assisted Reproductive Technology (ART) escrow platform, demonstrates that you go above and beyond to fully protect parents’ emotional and financial investment in building a family. It’s a key competitive differentiator.
Demonstrate You Go the Extra Mile for Your Clients
Today’s intended parents enter surrogacy with high expectations and low tolerance for any process shortcomings after encountering issues like infertility.
Attorneys are not financial experts. Unlike specialized escrow services, they may not provide a clear payment calendar or full financial transparency. This lack of clarity can lead to misunderstandings and disputes down the line.
Managing escrow independently with specialist providers demonstrates you will go the extra mile to facilitate a smooth, transparent journey. Parents perceive value in the additional peace of mind.
Focus Resources on Core Expertise
Specialized surrogacy agencies exist to provide excellent guidance, matchmaking, and emotional support to intended parents and surrogates.
Attorneys are trained in law, not in financial management or accounting. Managing an escrow account requires a deep understanding of financial regulations, disbursement schedules, and compliance with state laws. An attorney may not be equipped to handle these complexities, which could put your funds at risk.
Outsourcing the meticulous management of escrow accounts allows your team to devote more resources and energy to excelling at each professional’s true core competencies. Let the escrow experts handle the financial heavy lifting.
Surrogacy is Already Fraught with Risk – Don’t Add to It
As an agency, you guide vulnerable people through a convoluted process filled with emotional, medical, and legal pitfalls. With so much at stake, clients need to trust you fully. Don’t violate that trust by taking on escrow fund management in-house when that is clearly not your expertise.
Partner with an experienced independent third-party escrow firm like the team at SeedTrust to mitigate risks for your business and protect your clients. Contact us today to learn more and show parents you put their interests first.
Are you an agency who currently holds escrow in-house or with an attorney looking to understand the differences in more depth? Contact SeedTrust today to schedule a consultation, or reach out to our team at (888) 223-9818 to learn more.