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My
intermediary holds my exchange
funds in a commingled account.
Should
I be worried about this?
Yes.
A commingled account means that
your intermediary is putting every
client's exchange funds into one
account.
This
creates a couple of potential
problems for you. First of all,
if your intermediary goes bankrupt,
your funds will be used to pay
other creditors of the intermediary.
Even after you have received your
exchange funds, you could be required
to send all the money back to
the creditors of the intermediary.
Separate accounts (called segregated
accounts) protect you from this.
TEE-Shots
are Tips
from the Exchange
Experts
that are designed to make you
think about, and ask questions
about, the 1031 exchange process.
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