How Surrogacy Escrow Accounts Work: Understanding the Financial Side of Surrogacy

Are you thinking about surrogacy as a way to start or expand your family? Or maybe you’re considering becoming a gestational surrogate? If you are, you’ve probably come across the term “surrogacy escrow account” during your research. Surrogacy is a beautiful and life-changing journey, but it also involves various legal and financial aspects. One of the things you should know about surrogacy is the role of surrogacy escrow accounts. In this guide, we’ll walk you through the ins and outs of how these accounts work, giving you a comprehensive understanding of the financial side of surrogacy.

What is a surrogacy escrow account?

At its core, a surrogacy escrow account is a financial tool that helps manage the funds involved in the surrogacy process. An escrow fund manager acts as a neutral third-party holder of funds, ensuring that the intended parents’ money is protected and used appropriately for the surrogacy journey. The escrow fund manager helps facilitate the financial transactions between the intended parents, the surrogacy agency, and the various parties involved, such as the surrogate and medical professionals.

When establishing a surrogacy escrow account, a trusted and licensed surrogacy escrow agency is typically involved. The agency will guide you through the process and handle the financial aspects of your surrogacy journey, ensuring that all transactions are transparent and secure.

How does a surrogacy escrow account work?

Once you’ve chosen a surrogacy escrow agency, the process of setting up a surrogacy escrow account begins. Typically, the intended parents will fund the account before any expenses related to the surrogacy journey are incurred. The escrow agency will then disburse the funds as needed, following the agreed-upon financial plan and timeline.

The escrow account serves as a centralized hub for all financial transactions. The intended parents make deposits into the account, and the funds are held there until they are required for expenses such as medical procedures, legal fees, or surrogate compensation. The surrogacy escrow agency manages these disbursements, ensuring that the funds are used appropriately and in accordance with the Gestational Surrogacy Agreement (GSA).

Why surrogates should use a surrogacy escrow account

Surrogacy is a selfless and rewarding journey for women who are willing to help others create their families. There are several reasons why both agency-represented and independent surrogates should insist on utilizing a surrogacy escrow account throughout their journey.

First, a surrogacy escrow account ensures that the surrogate’s compensation is secure. By utilizing an escrow account, you can have confidence that your agreed-upon compensation will be held safely until it’s time for disbursement. This eliminates any concerns about late or missed payments, providing you with the financial stability you deserve throughout the surrogacy journey.

A surrogacy escrow account also offers transparency and accountability. The funds allocated for your expenses, such as medical procedures, prenatal care, and other reimbursable costs, are held in the escrow account. This ensures that the intended parents’ financial obligations are fulfilled and that there is a clear record of all transactions. 

Additionally, by having a centralized financial hub managed by a trusted escrow agency, you can have peace of mind knowing that your expenses will be covered promptly and appropriately. 

Using a surrogacy escrow account streamlines the financial process for surrogates, reducing stress and allowing you to focus on your own well-being and nurturing the growing baby.

Why intended parents should use a surrogacy escrow account

Utilizing a surrogacy escrow account offers numerous benefits for intended parents embarking on the surrogacy journey. Here are some compelling reasons why intended parents should consider using a surrogacy escrow account.

A surrogacy escrow account provides financial security and protection for intended parents. When you fund an escrow account, you have the assurance that your money is held in a neutral and regulated account, ensuring that your funds are safeguarded and will be used solely for the purposes outlined in your gestational surrogacy agreement. By entrusting the disbursement of funds to a reputable escrow agency, you minimize the risk of financial mishandling and have greater control over your surrogacy expenses.

Accountability is another significant advantage of using a surrogacy escrow account. A surrogacy escrow fund manager is an unbiased and neutral third party, which establishes a foundation of trust and professionalism. With their expertise, they skillfully manage financial transactions and maintain meticulous records of all disbursements. This not only fosters transparency but also ensures accountability throughout the entire journey. By diligently overseeing the funds, utilizing a neutral third party guarantees that the intended parents’ resources are distributed appropriately and in strict accordance with the terms outlined in the gestational surrogacy agreement.

A surrogacy escrow account also simplifies the financial logistics for intended parents. Instead of managing multiple payments and reimbursements directly with the surrogate and other parties involved, the escrow agency handles all financial disbursements on your behalf. This streamlines the process, reduces administrative burdens, and allows you to focus on the emotional and personal aspects of the surrogacy journey. With the financial aspects taken care of, you can fully embrace the joy and anticipation of your growing family.

Choosing the right surrogacy escrow agency

When selecting a surrogacy escrow agency, it’s crucial to do your research and choose a reputable and experienced provider. Look for an agency that specializes in surrogacy and has a proven track record of success. Consider their expertise, credentials, and the level of support they offer throughout the surrogacy process.

Additionally, it’s essential to review the agency’s fee structure and ensure that it aligns with your budget and expectations. Understand how the agency handles any unused funds in the escrow account and if there are any fees associated with the account’s maintenance.

Begin your surrogacy journey today!

Embarking on a surrogacy journey is a significant decision that requires careful consideration and planning. Understanding the financial aspects, such as surrogacy escrow accounts, is a vital step toward ensuring a smooth and secure experience. 

If you’re ready to take the next step and explore the possibilities of surrogacy as a surrogate or intended parent, we invite you to contact us today. Our dedicated team is here to guide you through every stage of the process, providing you with the support and expertise you need. 

Start your surrogacy journey today, and let us help make your dreams of parenthood come true!


This guest expert blog post was written by SeedTrust:

SeedTrust Escrow is an independent third-party surrogacy escrow company that provides secure, transparent, affordable, and reliable surrogacy escrow services to Intended Parents, Surrogates, and Egg Donors throughout their collaborative reproductive arrangements. As an attorney-managed escrow provider, we have a legal responsibility to protect the funds we hold in escrow and handle payments and reimbursements according to the contract between Intended Parents and their Surrogates. At SeedTrust, we endeavor to help families grow and reduce the financial stress of the escrow process allowing parents and surrogates to focus on what matters most — building families.