Safety of Exchange Funds
The security of the clients’ exchange funds is of the highest priority. All exchange funds entrusted to Legal 1031 are deposited in separate segregated money market escrow accounts and are never co-mingled. Legal 1031 only deposits exchange funds in standard bank money market accounts and never “invests” any of the exchange funds. Preservation of principal is our highest priority. Each of the exchange escrow accounts is identified with the name of our clients and uses their taxpayer identification number. As a Connecticut corporation, Legal 1031 Exchange Services, Inc. must comply with “An Act Providing Consumer Protection to Clients of Exchange Facilitators for Tax Deferred Exchanges” for all exchanges. Read more about how Legal 1031 was instrumental in having this law passed which protects all of our clients.
Disbursement of exchange funds always requires written authorization and verbal confirmation. We also have the ability to use “dual signature escrow accounts” where the bank must receive withdrawal instructions directly from the client, as well as the qualified intermediary, in order for funds to be withdrawn. This complies with all IRC §1031 statutes and regulations and provides the highest level of security for our clients.
Our goal at Legal 1031 is to take the uncertainty out of the transaction and make our clients feel comfortable. Many qualified intermediaries try to have you fill out forms over the internet and limit your conversations. Legal 1031 takes the opposite approach – we encourage our clients to contact us so that they feel confident and comfortable as they work through their transaction. Our goal is to “hold our client’s hand” through the exchange process while working closely with their tax, legal and real estate professionals.