This information further strengthens the notion of how important it is to thoroughly vet your 1031 company before making the decision to have your funds placed in their care.  Here are the questions you should ask and the answers you are looking for:

1.  Are the exchange accounts segregated?  The answer should be YES, there is never a reason to comingle exchange funds with operating accounts or other exchange accounts.

2.  How are the exchange funds invested?  The answer should be in FULLY LIQUID ACCOUNTS, such as certificates of deposit, cash management, working capital, money market accounts, bankers acceptances or U.S. obligations.

3.  If having all of your exchange funds FDIC insured is important then you need to ask if the company is participating in the Temporary Liquidity Guarantee Program offered by the FDIC.  This program will ensure any amount of funds through a bank.  Certain restrictions apply so be sure to get all the details.

If you would like more information on 1031 Exchange give Bankers Exchange Services in Walnut Creek, CA a call (877)989-1031.  We are a bank owned intermediary.  We segregate all exchange funds.  We deposit all funds into money market accounts.  We are participating in the Temporary Liquidity program.