According to information released by the Federation of Exchange Accommodators, 98% of their qualified intermediary members retain a portion of the
interest earned on exchange funds, and to do this they may hold exchange funds in a pooled account.
Not only the small, wholly owned QIs, but the large, title company affiliated QI's are pooling your money so that they can earn a higher return than the banks are paying, which they retain, since you cannot even see it.
They may invest it in anything from their pooled account in their quest for higher returns on
your principal, although it would be very unlikely to be invested in other than AAA rated vehicles. This year, however, that would not have guaranteed the return of the principal. It is therefore against the policy of Haven Exchange, where we specialize in the return of your principal, rather than return on it.
We open a brand new money market account at Union Bank of California for each and every exchange. The client gets the monthly bank statement. The statements are like other bank statements, reflecting the interest rate being paid, the amount of interest credited that month and year to date, and all other activity. There is no mystery. The funds are held as cash in completely liquid, totally segregated, FDIC insured, money market accounts, each covered by our 10 million dollar per occurrence Fidelity Bond.
There is further security in the policy of truly segregated exchange accounts, with regard to any possible litigation, bankruptcies, etc.
When a QI retains a portion of the interest earned by a pooled account, the QI must write a check to their general account from the pooled account in the amount of the interest to be retained by it. Because the check for their "share" of the interest is not addressed as a specific fee, at the moment they write that check they have commingled exchange funds with their general funds, and a judge could (and many have) declare that the exchange funds were therefore available to the QIs debtors! Haven Exchange calls this practice unconscionable.
At Haven Exchange, your signature is required prior to the release of any funds. Then two more signatures, two passwords and a constantly changing digital password are required for any wire.
Premium Service
You can call Haven Exchange and speak with an actual human being between 6am and 9pm PST 7 days a week. Our friendly, experienced staff has a combined 35 years experience coordinating 1031 Exchanges, and have coordinated over 15,000 exchanges. We are glad to speak with you about your 1031 Exchange.
We can fund the closing of your replacement property on the same day of our receipt of the necessary documentation.
We can produce the necessary documentation for your 1031 exchange within an hour.
Haven Exchange wants to be on your team. Call us toll free 7 days a week.
(866) 794-1031
|
