Exeter Trust Company

Qualified Trust Accounts

Greater control and protection for 1031 Exchange funds. Exeter provides Qualified Trust Account services designed to keep exchange proceeds separate, restricted and securely held while supporting compliance with 1031 Exchange requirements.

Speak With a Specialist
Protecting Exchange Funds

Know Where Your Exchange Funds Are Held. Know Who Controls Them.

✓Separate and segregated client trust accounts
✓Written approval required for fund disbursements
✓Held with a licensed and regulated trust company
Security and Oversight

More Than a Place to Hold Exchange Funds

A Qualified Trust Account can help safeguard exchange proceeds while preventing the investor from having actual or constructive receipt of the funds during a 1031 Exchange.

QTA

Separate Accounts

Exchange funds are maintained separately from the Qualified Intermediary's corporate funds and assets.

2X

Dual Approval

Fund disbursements require explicit written approval from both the investor and the Qualified Intermediary.

✓

Restricted Funds

The account structure is designed to prevent actual or constructive receipt of exchange proceeds.

WY

Regulated Institution

Exeter Trust Company is licensed, regulated and examined by the Wyoming Division of Banking.

The 1031 Exchange Requirement

Avoiding Actual or Constructive Receipt

Investors completing a 1031 Exchange generally cannot receive, control or benefit from the net proceeds from the sale of the relinquished property while the exchange is underway.

That makes the way exchange funds are held an important part of the transaction. A properly structured Qualified Trust Account or Qualified Escrow Account can hold and safeguard the proceeds while supporting compliance with Section 1031 and applicable Treasury Regulations.

The objective is straightforward, protect the investor's exchange funds without giving the investor control that could jeopardize the exchange.
1031

Exchange funds require a carefully controlled structure.

Qualified Trust Accounts provide a framework for holding client trust funds separately and restricting how those funds may be released during the exchange.

How It Works

A Simple Structure With Important Safeguards

Exeter's Qualified Trust Account structure combines the role of the Qualified Intermediary with the oversight of a regulated financial institution.

1

Exchange Funds Are Deposited

The Qualified Intermediary deposits the investor's exchange proceeds into a separate and segregated Qualified Trust Account with Exeter Trust Company.

2

Funds Remain Restricted

The account is structured so the investor does not have unrestricted access or control over the exchange proceeds while the 1031 Exchange is in progress.

3

Both Parties Approve Disbursements

Any disbursement requires explicit written approval from both the investor and the Qualified Intermediary.

Why Exeter

Protection Backed by Experience and Oversight

Exeter combines experienced 1031 Exchange administration with the safeguards and regulatory oversight of Exeter Trust Company.

QI

Experienced QI

Exeter 1031 Exchange Services, LLC serves as the Qualified Intermediary for exchange transactions.

TC

Regulated Trust Company

Exeter Trust Company provides the regulated financial institution structure for Qualified Trust Accounts.

2X

Dual-Signature Control

Written approval from both parties is required before exchange funds are disbursed.

✓

Separate Client Funds

Client trust funds remain separate and apart from the Qualified Intermediary's corporate funds and assets.

Licensed. Regulated. Secure.

Regulated Financial Institution Oversight

Exeter Trust Company is licensed, regulated and examined by the Wyoming Division of Banking. This regulatory structure adds an important layer of oversight to the custody and safeguarding of exchange funds.

Exeter Trust Company can also serve as trustee for Qualified Trust Accounts or escrow agent for Qualified Escrow Accounts for 1031 Exchange transactions administered by other Qualified Intermediaries.

✓Licensed and regulated by the Wyoming Division of Banking
✓Annual regulatory examinations
✓Independent CPA financial audits
✓Independent CPA procedural audits
Flexible QTA Services

Qualified Trust Account Services for 1031 Exchanges

Exeter can support Qualified Trust Account needs whether Exeter is administering the exchange or another Qualified Intermediary is involved.

Exeter-Administered 1031 Exchanges

Exeter 1031 Exchange Services, LLC can serve as Qualified Intermediary while exchange funds are deposited, held and safeguarded in separate Qualified Trust Accounts with Exeter Trust Company.

Other Qualified Intermediaries

Exeter Trust Company can serve as trustee for Qualified Trust Accounts or escrow agent for Qualified Escrow Accounts when the 1031 Exchange is administered by another Qualified Intermediary.

Required Disclosure

State of Washington Required Notice

Washington state law, RCW 19.310.040, requires an exchange facilitator to either maintain a fidelity bond in an amount of not less than one million dollars that protects clients against losses caused by criminal acts of the exchange facilitator, or to hold all client funds in a qualified trust account or qualified escrow account that requires your consent for withdrawals. All exchange funds must be deposited in a separately identified account using your taxpayer identification number.

You must receive written notification of how your exchange funds have been deposited. Your exchange facilitator is required to provide you with written directions of how to independently verify the deposit of the exchange funds. Exchange facilitation services are not regulated by any agency of the state of Washington or of the United States government. It is your responsibility to determine that your exchange funds will be held in a safe manner.

Have Questions?

Talk With an Exeter Specialist.

Learn more about Qualified Trust Accounts, how exchange funds are held and the safeguards available for your 1031 Exchange transaction.

This information is provided for educational purposes only and is not intended as legal, tax, financial or investment advice. Investors should consult with their legal, tax and financial advisors regarding their specific circumstances.