How do I ensure my 1031 funds are safe?
Answer - A RESTRICTED 1031 EXCHANGE OR QUALIFIED ESCROW ACCOUNT
- Posted by Admin
The 1031 exchange industry is largely unregulated. And the fact is, many investment property owners don't know this before they start their tax deferred exchange. So, they aren't necessarily aware that when the exchange proceeds from their sale are on deposit with a Qualified Intermediary, those funds legally belong to the Facilitator. This is why you must be sure that your Qualified Intermediary ensures the proper handling of your hard-earned exchange proceeds.
FYNTEX utilizes only Restricted 103 exchange accounts or Qualified Escrow Accounts at major banks for every exchange. This ensures that your funds can never be moved without your explicit written authorization prior to wiring of any exchange funds. There is absolutely no other funds security mechanism as safe as a dual signature restricted account or QEA. Your funds are fully secured by a regulated financial institution, so you are not dependent upon bonding or insurance, which if needed is likely to arrive to late to save your exchange and the resulting taxable event which will arise from the original loss of your 1031 proceeds.