On a recent episode of The Surrogacy Space, attorney Marla Neufeld sat down with Abby Helmuth, Director of Partner Relations at SEED Trust, to discuss the critical role of escrow services in surrogacy and egg donation. Their conversation revealed valuable insights about this often overlooked but essential component of the fertility journey.
What is Escrow and Why Does it Matter?
In the world of third-party reproduction, escrow services provide a secure way to handle financial transactions between intended parents, surrogates, egg donors, and service providers. As Helmuth explained, “Escrow is maybe one of the last steps determined through a journey, but it’s one of the most critical.”
An escrow provider offers three key benefits:
- Security for all parties’ funds
- Transparency in the financial process
- Peace of mind for everyone involved
In some states, using an escrow service is legally required for surrogacy arrangements. Even where not mandated, it’s considered a best practice in the industry to protect everyone’s interests.
SEED Trust: A Decade of Innovation
Founded in 2015 by Edward Brock Schmidt (a CPA) and Roland Solum (a former bank executive), SEED Trust emerged to fill a critical gap in the surrogacy industry. Before their founding, there were few reliable escrow services specializing in third-party reproduction.
Now celebrating their 10th anniversary, SEED Trust has evolved from manually managing accounts through spreadsheets to offering a sophisticated online portal where all parties can track and manage funds. This evolution reflects their commitment to security, transparency, and efficiency.
How the Process Works
SEED Trust acts as an escrow fund manager, reviewing all transactions against milestones outlined in the gestational surrogacy agreement. Their process includes:
- Milestone tracking: Working with agencies or directly with intended parents and surrogates to monitor key events in the journey
- Payment processing: Handling payments according to the contract terms
- Documentation management: Verifying receipts and ensuring compliance with the agreement
For self-matched journeys (where intended parents find a surrogate without an agency), SEED Trust provides personalized communication, relying on updates from both the intended parents and surrogates to track milestones.
Fee Structure
SEED Trust offers a refreshingly straightforward fee structure:
- Surrogacy accounts: $1,850 flat fee (paid by intended parents)
- Egg donation accounts: $400 flat fee
This all-inclusive pricing covers the entire journey with no rematch fees, no time-based fees, and no transaction fees, providing clarity and predictability for intended parents.
Security Measures: Lessons from Industry Challenges
The interview touched on a tragic incident in Texas where another escrow company allegedly misappropriated client funds, leaving many families in difficult situations. In response to this event, SEED Trust has been proactive in educating the community about necessary protections.
Key safeguards implemented by SEED Trust include:
- Qualified and experienced leadership: A team led by professionals with backgrounds in accounting, law, and banking
- Defined structure and process: A five-step approval process with multiple checks and balances
- Independence and specialization: No conflicts of interest with agencies or other service providers
- Financial protection: A $50 million bond to protect against misappropriation and theft
- Insurance coverage: Including $2 million general liability, cyber incident protection, and errors and omissions policies
- Technical security: Two-factor authentication and HIPAA-compliant encryption for all sensitive information
Why These Protections Matter
“We continuously provide education around our security and look for ways we can advance it,” Helmuth emphasized. “That has always been the number one priority for our company.”
This focus on security is particularly important given the significant financial and emotional investment involved in surrogacy journeys. Medical bills can arrive months or even a year after services were provided, making long-term fund management essential.
Getting Started with SEED Trust
For those considering surrogacy or egg donation, SEED Trust offers complimentary consultations with their client onboarding specialists. These sessions allow intended parents, surrogates, and egg donors to understand the escrow process before making commitments.
