Safeguarding 1031 Exchange Funds: Security, Transparency, Stewardship

At 1031 CORP., safeguarding and managing your exchange funds with integrity, transparency, and security is our highest priority. Our approach reflects one of our core values: Modeling and Inspiring Stewardship—a commitment to providing secure, reliable service and maintaining the highest ethical standards in every transaction. Here’s how we uphold this value in our daily operations: 

Secure Client Funds 

Your funds are protected with the highest level of security. Our banking team continuously monitors partner banks and utilizes specialized banking products specifically designed for 1031 exchanges. This careful approach ensures your funds are safeguarded, providing peace of mind with every transaction and underscoring our commitment to stewardship. 

Transparent Transactions 

Transparency is at the heart of our service. Each client’s funds are held in a segregated account titled explicitly for their benefit. You’ll have direct access to view your account on the bank’s website, receive monthly statements, and an annual 1099-INT form directly from the bank, ensuring every transaction is clear and easy to understand. At the end of your exchange, 1031 CORP. will prepare an Exchange Account Summary explaining every deposit, withdrawal and interest posting to assist your tax advisor when reporting your 1031 exchange. 

Highly Trained Professionals 

Our team is extensively trained to serve clients with knowledge, confidence, and professionalism. Our dedicated banking team understands and upholds our stewardship values by handling exchange funds with skill and care.  

Commitment to Continuing Education 

In alignment with our core values, we prioritize ongoing training and education for our team. Staying current with industry standards and best practices allows us to provide top-tier, knowledgeable service that our clients can trust. Our exchange team members receive a minimum of forty hours of Company or industry provided continuing education annually. 

Years of Proven Experience 

With a wealth of industry experience, our team brings reliability and expertise to every transaction. Each aspect of our process—from account setup to disbursement—is designed to safeguard your funds and streamline your experience, reinforcing our commitment to secure stewardship. 

Banking & Security Protocols 

To ensure the utmost security for your funds: 

• Segregated Accounts: All funds are held in separate, designated bank accounts for each client’s benefit, reinforcing our commitment to transparency and security with viewing access available. 

• FDIC Insurance Coverage: For balances exceeding the FDIC insured amount of $250,000, we use Insured Cash Sweep® (ICS) to distribute funds across multiple banks, ensuring full FDIC insurance coverage. 

• Dedicated Support Personnel: Our partner banks provide specially trained personnel to manage 1031 exchange funds securely, supporting our stewardship values. 

Robust Internal Controls and Wire Verification 

• Dual Approvals for Disbursements: Disbursements require authorization from two Exchange Officers and two banking team members, with a rigorous double-check process to maintain accuracy and security. 

• Wire Verification Process: For additional security, most disbursement authorizations are signed via DocuSign with knowledge-based identity verification. For non-DocuSign authorizations, we match signatures to the Exchanger’s photo ID on file and confirm wire instructions directly by calling only verified business numbers listed on official company materials. 

Built on Confidence 

• 1031 CORP. is dedicated to building confidence with clients through secure, transparent, and knowledgeable service. Every aspect of our work reflects our core value of Modeling and Inspiring Stewardship, setting industry standards for integrity, transparency, and security. Our mission is to make your 1031 exchange experience seamless, secure, and trustworthy, giving you peace of mind at every step.