Surrogate Income: Who’s holding it and who decides when to pay out

Posted on: April 25th 2011

The Surrogate’s entire body of payment and expected expenses should be held by a third party escrow company prior to signing the contract. Otherwise when it’s time for a payout, the money may not be available. They should have specific written instructions on when and how to disburse these funds to the surrogate. Most important, the escrow holder should NOT have the power to diverge from these instructions without written approval from ALL parties, including the surrogate! No single party or agency should be able to suspend payments. Surrogates should verify, in writing, who has the power to change escrow instructions with the escrow agent. A checking account where both parties must sign the check to the surrogate, even when fully funded with the surrogate’s compensation and expense monies is not foolproof. There is nothing to stop a party from not signing a check– then the funds would not be available! If the Intended Parents are not residing in the United States, then be sure that the trust is funded with all possible monies necessary (particularly medical expenses related to delivery and premature infant care!), as it is almost impossible to get or collect judgments from non-residents.