Surrogacy Escrow Services

Surrogacy Escrow Services You Can Trust

Financial management can be one of the more stressful and complex parts of a surrogacy journey. The amount invested is significant, and payments occur over time. Even with a successful, harmonious match between the intended parents and their surrogate, it’s essential to have safeguards in place to protect each party’s finances.

A surrogacy escrow service brings structure and oversight to the financial process, ensuring funds are secure and payments are timely. To choose a service you can trust, it’s helpful to have a foundational understanding of how it works. 

What Is a Surrogacy Escrow Account?

Think of a surrogacy escrow account (also known as a surrogacy trust account) as a secure, third-party safe where money is held and disbursed. The intended parents set up the account and fund it before their surrogate’s medical procedures begin. The money is then released in installments to the surrogate at the key milestones outlined in their contract, such as embryo transfer and heartbeat ultrasound.

Neither the intended parents nor the surrogate is in charge of the escrow account; it is managed by a third-party surrogacy escrow company or trust management provider.

The account holds funds for various expenses, including:

• The surrogate’s compensation

• Medical and insurance-related expenses

• Monthly allowances

• Legal and agency fees

A surrogacy escrow account is active for the duration of the pregnancy and may remain open for up to a year after the surrogate gives birth to settle any final bills or expenses.

Why Escrow Is Essential in the Surrogacy Process

Escrow for surrogacy reduces risk, increases transparency, and enforces financial accountability.

Consider expenses and timeline: The average surrogacy journey in the U.S. costs $100,000 to $200,000, with payments released incrementally before, during, and after the pregnancy. The surrogacy escrow company ensures the account is funded for the journey and that payments are made correctly and on time, eliminating the need for intended parents and surrogates to coordinate. Their neutrality is important, because they do not represent or advocate for either side. Their job, for the duration of the journey, is to protect the money in the account and follow the legal agreement.

Surrogacy escrow offers specific benefits to surrogates, intended parents, and surrogacy agencies:

• For surrogates, it serves as proof that funds are available and secure, empowering them to move forward with the process.

• For intended parents, it protects their investment by ensuring funds are released only when the contract milestones are met.

• For surrogacy agencies, which are interested in keeping both parties happy, escrow allows them to operate more efficiently and remain neutral, removing financial management responsibilities.

Beyond its practical uses, escrow also helps neutralize financial anxiety and tension, allowing intended parents and surrogates to focus on the emotional, life-affirming experience that’s happening alongside it. The third party helps remove the “noise” that finances can sometimes trigger, while also handling day-to-day communications and disputes, should one arise.

Without escrow, payment coordination can become disorganized, milestones may be missed, and trust between parties may start to erode.

Who Uses Surrogacy Escrow Services?

• Intended Parents

  Intended parents use surrogacy escrow services to secure their funds and guarantee they are released according to legal contracts.

• Surrogates

  For surrogates, surrogacy escrow offers reassurance that funds are available and secure before starting medical procedures. It also removes the burden of payment coordination and simplifies reimbursement requests.

• Agencies & Legal Professionals

  Through a surrogacy escrow service, agencies and legal professionals can reduce risk and relieve themselves of the administrative burdens associated with financial management.

• International Surrogacy Journeys

  Intended parents traveling to the U.S. for a surrogacy journey can have peace of mind knowing their funds are protected as they navigate the other logistics associated with an international journey.

How Clarity Trust Manages Surrogacy Escrow

Clarity Trust is an independent, third-party fertility trust management provider who understand the nuances of surrogacy agreements. We coordinate with agencies, clinics, and legal teams to distribute funds according to the contract and agreed-upon timeline. We have years of experience in the fertility industry and can offer support beyond simply holding the funds.

Designed for Security and Transparency

We offer layers of protection to safeguard your money and make the financial process as secure and simple as possible:

• Bonded funds to protect against loss, fraud, or employee dishonesty

• Insurance coverage, including Errors & Omissions and General Liability

• Funds held in secure, regulated financial accounts

• Structured internal controls and approval processes

We also offer 24/7, real-time insight into the payment process through our proprietary Trust Portal, an encrypted, HIPAA-compliant platform that utilizes smart contract technology to organize and track payments. Surrogates who are granted access can review and export payment history, view their journey status, upload receipts, and more. Intended parents can schedule payments, review payment and deposit history, track all journey milestones, connect with team members, and more.

Clarity Trust also offers clear, flat-rate pricing for our services to keep your journey as financially uncluttered as possible.

Frequently Asked Questions

• What is a surrogacy escrow account?

  A surrogacy escrow account is a secure financial account where funds are held and disbursed by an independent third party according to the terms of a surrogacy contract.

• Is surrogacy escrow required?

  Though not legally mandated in every state, most surrogacy agencies do require escrow in order to move forward with the surrogacy journey. The layer of financial protection it provides to all parties is invaluable.

• Who controls the surrogacy escrow account?

  A neutral third-party escrow provider is in control of the escrow account, managing payment release, ensuring legal compliance, and making the process fair and balanced for all parties.

• How are payments released during surrogacy?

  Payments — including base surrogate pay, medical expenses, reimbursements, and more — are released to the surrogate according to the signed legal agreement. The surrogacy escrow service is responsible for disbursing those payments on time.

• How is a surrogacy escrow account funded?

  The surrogacy escrow account is funded by the intended parent(s) before the surrogate’s medical procedures begin. This is a kind of financial “guarantee” indicating that there is money available, so the surrogate can feel secure about proceeding. 

• Can international intended parents use surrogacy escrow services?

  Yes, international intended parents can use surrogacy escrow services. Clarity Trust supports families from around the world as they build their families through surrogacy, making the financial process more secure, efficient, and transparent.

• How are funds protected in a surrogacy escrow account?

  At Clarity Trust, we take a 5-part approach to security, which includes segregation of funds, independent oversight and auditing, and professional regulation and bonding.

• What makes Clarity Trust different from other surrogacy escrow companies?

  At Clarity Trust, we have tailored all of our services specifically for third-party reproduction. While our technology is robust and secure, we also provide a level of care and attention to each transaction, humanizing the process and helping you have peace of mind.