To implement this approach, we use Customers Bank, headquartered in New York, or TriState Capital Bank, headquartered in Pittsburgh, Pennsylvania. These banks provide specialized services for 1031 depositors including direct 1099s, seamless execution, and copies of monthly statements.
A new individual bank account is established for your specific exchange. It is opened using the exchanger’s tax ID # and labeled “for the benefit of” (F/B/O) the exchanger. The proceeds from the relinquished sale only go into this account and you will receive a monthly account statement from the bank each month.
We require your written or email authorization before funds can be dispersed from this account. We make it easy and contact you for final approval. This procedure is followed when funds need to be released for earnest money, a closing, or to close out your account.
You can choose to use a Qualified Escrow Agreement that is signed by you, the bank and ADE. This separate document legally establishes your ultimate legal ownership of the funds and specifies that your signature is required for funds to be moved, while still complying with the 1031 Regulations (additional fees apply).
Please take a moment to watch our brief Safety of Funds Triple Protection video.
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678.403.4192
800 Battery Ave, Ste 100
Atlanta, GA 30339
