We believe that you should know exactly how and where your exchange funds are deposited. Furthermore, you should receive independent verification of this critical information directly from the bank. Accordingly, we provide the following for all our exchange clients:
(1) Segregated Account
Your exchange funds will be deposited in a segregated bank account in the name of 1031 Services, Inc. “for your benefit” and with your tax identification number (the “Exchange Account”). The Exchange Account will be opened with an independent bank (the “Bank”).* We have never commingled or pooled a client’s exchange funds with any other client’s exchange funds for investment purposes. You may also request a qualified escrow account from which any disbursement requires your written authorization, the authorization by a Bank officer, and the authorization of two officers from 1031 Services, Inc.
(2) Independent Verification from the Bank
We appreciate your trust in us, but we believe that you should receive independent verification directly from the Bank about how and where your funds are invested. Thus, the Bank will send you a monthly account activity statement.
(3) FDIC Insured Money Market Account
The funds in the Escrow Account are invested in a money market account that is insured by the FDIC for up to $250,000. Your tax identification number is used for the Escrow Account.
*We currently work with several independent banks. Please call for more information on the choice of banks.
