Questions about who holds the money
1. Who holds client funds, and are they licensed and bonded in which state? A good answer names an independent escrow company, the state that licenses it, and its license number. You should be able to look the license up yourself.
2. Does any owner, staff member or affiliate of the agency have an interest in the escrow holder? The answer you want is a plain no. Shared owners, shared offices or shared staff make "independent" escrow independent in name only.
Questions about the account and statements
3. In whose name is the account, and at which bank? The account should be held for the parties to the escrow agreement, you and your surrogate, at a named bank. An escrow agent that will not name the bank is a red flag.
4. Who sends statements, and how often? Monthly statements should come from the escrow company directly to you and to the surrogate, plus a notice for each payment. If statements come from the agency, you cannot see the real balance. See agency financial red flags.
Questions about fees and what triggers them
5. What is itemized, and what is the agency fee versus third-party and surrogate costs? You should get a line-item budget: the agency fee, third-party costs (legal, escrow, psychological evaluation, background checks, insurance review, travel, monitoring), the surrogate's compensation package, insurance and clinic costs.
6. What is paid at signing, match and clearance, and what triggers each? Fees should be staged to work done. Large sums due before any work starts are worth questioning. See what the program fee covers.
Questions about failure, refunds and rematch
7. What happens to each dollar if the match ends, the transfer fails or we withdraw? A good answer is in the contract, fee by fee. "We work it out" is not an answer.
8. Is there a rematch fee? Get the number in writing, and ask what triggers it.
Questions about choice and references
9. Can we choose our own escrow company and attorney? The answer should be yes. You may want referrals, but you should not be required to use the agency's choice.
10. May we speak to a current client and a current surrogate about payments? An agency that treats surrogates as partners will connect you with both.
PLS's answers to all ten, in writing
These answers are pending Nancy Block's approval of the exact wording.
| Question | What a good answer sounds like | Red flag answer | PLS answer |
|---|---|---|---|
| 1. Who holds funds? | "An independent licensed escrow company; here is the license number." | "We hold it in our trust account." | An independent licensed escrow agent. PLS never holds client funds. |
| 2. Agency interest in the escrow holder? | "None." | "It is our sister company." | None. PLS refers to independent professionals on purpose, to avoid conflicts of interest. |
| 3. Account name and bank? | "Held for you and your surrogate at a named bank." | "That is confidential." | Held by the escrow agent for the parties; the escrow agent names the bank. |
| 4. Who sends statements? | "The escrow company, monthly, directly to you." | "We send a summary." | The escrow agent sends statements directly to you and the surrogate. PLS has no signing authority over escrow. |
| 5. What is itemized? | "Here is a line-item budget." | "One all-in price." | Program fee, third-party costs of $15,300 to $29,000, surrogate compensation, insurance if needed ($5,000 to $40,000) and clinic fees, each listed. |
| 6. What triggers each fee? | "Each fee is tied to a milestone." | "Full payment at signing." | $22,500 at signing, $20,000 at surrogate acceptance, $5,000 at medical clearance, for a $47,500 program fee. |
| 7. What if it ends? | "Here is the clause, fee by fee." | "We decide case by case." | [Refund terms to be stated verbatim from the agreement.] See the refund and rematch policy. |
| 8. Rematch fee? | "Here is the amount and the trigger." | "It depends." | [Standard rematch terms to be stated verbatim.] The Assured tier ($62,500) includes priority matching, unlimited rematches and no new agency fee if the first surrogate does not succeed. |
| 9. Choose our own escrow and attorney? | "Yes." | "You must use ours." | Yes. You may choose your own escrow company and your own attorney. |
| 10. Speak to a client and a surrogate? | "Yes, here are two contacts." | "We do not share references." | [Confirm reference process with Nancy.] |
Escrow at PLS is funded in two steps: $10,000 at match and the balance before medications start. Nothing medical starts until the agreement is signed and escrow is funded.
Ask every agency these ten, in writing, and compare the answers side by side. For the broader list of questions about screening, matching and support, see questions to ask a surrogacy agency.
Sources
- SEEDS, Society for Ethics in Egg Donation and Surrogacy, of which Nancy Block, RN, is a former President.
- Private Label Surrogacy fee schedule, escrow policy and agency agreement.