WITHOUT ANY OBLIGATION OR FEE
We encourage prospective clients and their advisers to meet with us to consider whether engaging in a tax deferred exchange may be in the client’s best interest. We urge each client, their real estate agent, attorneys, and tax/financial advisers to ‘error on the side of communicating with us’ if they have any questions or additional information they wish to discuss.
WE HAVE YEARS OF EXPERIENCE
Preparing the various exchange documents which are necessary for your tax deferred exchange to comply with the ‘safe harbors’ associated with doing a tax deferred exchange. The IRS created ‘safe harbors’ particular to tax deferred exchanges to assist taxpayers complete their exchanges without fear that the IRS would subsequently challenge, reject their exchange, and demand payment of the deferred capital gain taxes including perhaps interest and penalties.
WE REVIEW AND APPROVE
All of the customary closing documents an escrow closer prepares for both your ‘sale’/relinquished property(ies) and ‘buy’/replacement property(ies) to ensure that those escrow documents are compatible with your tax deferred exchange.
WE PROVIDE SOLID PROTECTION AND SAFETY OF YOUR EXCHANGE FUNDS FROM LOSS OR THEFT
Each client’s exchange funds are deposited into a segregated interest earning FDIC insured account by using our client’s social security or tax identification number. Each depositor’s funds are insured up to $250,000 or more as permitted by the federal government. We NEVER co-mingle our client’s exchange funds. For your protection, your escrow closing agent for your ‘sale’/relinquished property will directly wire your net sale proceeds/exchange funds directly into your individual bank account. 100% of your funds are always liquid and available for you to use to complete your exchange.
WE USE A QUALIFIED ESCROW AGREEMENT
Because we believe that this is the best way to protect our clients’ funds from theft or misuse.
Every now and then it is appropriate to commend the IRS for its foresight. The IRS created tax deferred exchanges in the early 1920’s. At the same time the IRS created tax deferred exchanges it also saw the need to provide a way for taxpayers who to protect their sale proceeds from theft. Accordingly, the IRS approved usage of a document entitled a ‘Qualified Escrow Agreement’, ‘QEA’, to protect the exchanger’s funds from theft. This agreement has proven itself to be a very effective way to provide for the security of a client’s funds. The primary benefit of using a QEA is that a client’s funds may ONLY be withdrawn from the trust account by delivering to the depository Bank written instructions, signed by both you, our client, and WASHINGTON EXCHANGE SERVICES, INC., which instruct the Bank how much and where any exchange funds are to be sent.
The QEA is actually very simple document. There are three parties to this agreement. They are: the Qualified Intermediary, ‘QI’, aka, WASHINGTON EXCHANGE SERVICES, INC., the Bank, aka, ‘Escrow Holder’, and you, the exchanger/client, aka ‘Exchanger’. We like to emphasize that for your protection, we require each client to have their signature to the QEA notarized prior to the ‘sale’/relinquished property closing. As a result of our practice, the Bank/Escrow Holder is able to verify and confirm your identity as the Exchanger. Notarizing your signature to the QEA requires a little more effort from both, WASHINGTON EXCHANGE SERVICES, INC., and yourself, but when it comes to protecting your funds, we believe you will agree with us that a bit more effort is justified so that you will have confidence your funds are safe and are being handled in a responsible manner.
Per the terms of the QEA, the Bank/Escrow Holder is instructed by the both Qualified Intermediary, Washington Exchange Services, Inc. and the client/exchanger to not release any of the exchange proceeds until it, the Bank/Escrow Holder, has received written instructions from the Qualified Intermediary and the Exchanger to do so and which written instructions direct how much and where said funds are to be wired by the bank.
Per the terms of the QEA, the Bank/Escrow Holder is instructed by the both Qualified Intermediary, Washington Exchange Services, Inc. and the client/exchanger to not release any of the exchange proceeds until it, the Bank/Escrow Holder, has received written instructions from the Qualified Intermediary and the Exchanger to do so and which written instructions direct how much and where said funds are to be wired by the bank.
PEACE OF MIND
Each client may request the Bank/Escrow Holder to permit them to view their exchange trust account on-line.