1031 Exchange Qualified Intermediaries (Accommodators) Are Not Created Equal

Taxpayers often think 1031 Exchange Qualified Intermediaries are all created the exact same – but Qualified Intermediaries are absolutely not created equal – and the differences can be significant and crucial.  Were you aware that there is absolutely no regulatory body or government agency oversight available for Qualified Intermediaries, and that only about one percent of Qualified Intermediaries are licensed, regulated, audited and have minimum equity capital requirements?  That is very scary when you think about how much client funds they are holding for taxpayers' 1031 Exchange transactions.  

I have seen many 1031 Exchange Qualified Intermediaries go under over my 35 year career in the 1031 Exchange industry and most of those could have been avoided had there been any kind of regulatory or governmental oversight and audit of those Qualified Intermediaries. 

Qualified Intermediaries are an extremely crucial part of any successful 1031 Exchange transaction.  They have three (3) very important responsibilities, which include preparing the 1031 Exchange agreements and documents to properly structure the taxpayer's 1031 Exchange, working with the taxpayer and their advisors to ensure a successful 1031 Exchange transaction and probably the most important responsibility – hold, protect and safeguard taxpayers' 1031 Exchange funds. 

Taxpayers should be diligent when evaluating and selecting a Qualified Intermediary since they hold significant amounts of 1031 Exchange funds. 

Governmental Regulatory Oversight Ensures Safety and Soundness 

Government oversight by a regulatory body, such as the State Division of Banking, State Department of Financial Institutions, Office of the Comptroller of the Currency (OCC) or the Federal Reserve, will ensure that the 1031 Exchange Qualified Intermediary is operating in a safe, sound and secure manner.  This is very important since they have such tremendous fiduciary responsibilities.  The vast majority of Qualified Intermediary failures could have been prevented through this governmental oversight and audit. 

Qualified Trust Accounts Protect Investors’ Funds 

Qualified Intermediaries should deposit, hold and safeguard taxpayers' 1031 Exchange funds in separate, segregated Qualified Trust Accounts or Qualified Escrow Accounts.  The court ruled in the LandAmerica 1031 Exchange bankruptcy case that the 1031 Exchange funds held by LandAmerica 1031 Exchange were corporate (not client) funds and were subject to the creditor claims in the bankruptcy since the monies were not held in Qualified Escrow Accounts as authorized by the Department of the Treasury Regulations.  Qualified Escrow Accounts clearly delineate 1031 Exchange funds as fiduciary (client) funds and not corporate funds in the event the 1031 Exchange Qualified Intermediary files for either voluntary or involuntary bankruptcy. 

Exeter Trust Company

Exeter 1031 Exchange Services, LLC deposits, holds and safeguards its clients' 1031 Exchange funds in separate, segregated Qualified Trust Accounts at Exeter Trust Company.  Exeter Trust Company is licensed, regulated, and audited by the Wyoming Division of Banking.  It is required to maintain significant levels of equity capital.  

Bonding, Insurance and Equity Capital Provide Financial Strength and Stability

1031 Exchange Qualified Intermediaries’ should provide substantial levels of fidelity bond coverage, errors and omissions insurance coverage, fiduciary insurance coverage and maintain substantial equity capital as an added and appropriate safety net for errors or losses in a 1031 Exchange transaction.  Taxpayers should always evaluate the methods and processes put in place by the Qualified Intermediary to track, monitor and protect 1031 Exchange funds through internal controls, checks and balances. 

There is Absolutely NO Substitute for Experience 

Taxpayers need more than just a 1031 Exchange transaction processor.  Taxpayers should be able to go to a 1031 Exchange Qualified Intermediary for advice and guidance on the absolute best practices in the administration of 1031 Exchange transactions.  Interview the Qualified Intermediaries that you are looking at to ensure the administrators have the technical depth, experience and expertise necessary for the administration of 1031 Exchange transactions.  Taxpayers need assistance, so the 1031 Exchange Qualified Intermediary should be willing to work with the investor and their legal and tax advisors to ensure a successful 1031 Exchange transaction. 

Exeter 1031 Exchange Services, LLC Hosts 1031 Exchange Workshop in Cheyenne, WY

Unraveling the Mystery of 1031 Exchanges Workshop 

Exeter 1031 Exchange Services, LLC schedules its first free 1031 Exchange Workshop in its new Mountain Regional Office located in Cheyenne, Wyoming.

Unraveling the Mystery of 1031 Exchanges is a basic to intermediate level workshop and round table discussion on 1031 Exchanges that will help those attending unravel the mystery of completing successful 1031

1031 Exchange Workshop
Cheyenne, Wyoming

Exchanges transactions. 

What is a 1031 Exchange? What are the benefits and advantages?  How do you structure one?  What should you watch out for?  

The workshop discussion will include the requirements, structures, processes, strategies, and compliance issues necessary to successfully complete a 1031 Exchange. This is not just any seminar; it’s an educational workshop where you can roll up your sleeves, learn and ask as many questions as you like.

Hosted and Presented by Exeter 

Unraveling the Mystery of 1031 Exchanges is hosted by Tony Hammock, Senior Vice President, Chief Trust Officer and Trust Operations Manager along with Patrick Bailon, 1031 Exchange Administrator, in Exeter's new Mountain Regional Office.  The workshop will be presented by Bill Exeter, President and Chief Executive Officer and Maureen H. Brown, Senior Vice President and Exchange Services Group Manager.  

RSVPs Required 

RSVPs are required as seating is extremely limited.  There are only twenty-five (25) seats available, so click here to register for this 1031 Exchange Workshop.  

Exeter 1031 Exchange Services, LLC Opens Regional Office in Cheyenne, Wyoming

1031 Exchange Services Group Expansion Continues 

Exeter 1031 Exchange Services, LLC continued its national expansion plans for its 1031 Exchange Services Group with the opening of its Mountain Regional Office located in Cheyenne, Wyoming. 

Tony Hammock
Mountain Regional Office
Cheyenne, Wyoming

Exeter 1031 Exchange Services, LLC previously announced that Tony Hammock had joined the company's executive management team as Senior Vice President, Chief Trust Officer and Trust Operations Manager. 

The new Mountain Regional Office in Cheyenne, Wyoming will be under the direction of Mr. Tony Hammock. 

New Mountain Regional Office Location in Cheyenne, Wyoming 

Tony Hammock opened the company's Mountain Regional Office on Saturday, December 1, 2018, which is located in the Jonah Bank of Wyoming Building at 205 Storey Boulevard,

Exeter 1031 Exchange Services, LLC
Mountain Regional Office
Cheyenne, Wyoming 

Suite 200, Cheyenne, Wyoming 89009. 

Tony is responsible for the day-to-day and long-term strategic planning, management and oversight of the Trust Operations Department that will also be headquartered in Cheyenne, Wyoming. 

1031 Exchange Educational Programs 

The company's 1031 Exchange Services Group will begin hosting 1031 Exchange educational seminars and webinars and other programs in the state of Wyoming, as well, beginning in January 2019.  

Exeter is Looking Forward to Being Part of Cheyenne, Wyoming Community 

The Exeter Group of Companies, including Exeter 1031 Exchange Services, LLC, looks forward to becoming deeply involved in the Cheyenne, Wyoming community, including participation in the "These Boots are made for Talking" (Cheyenne Big Boots).

Unraveling The Mystery of 1031 Exchanges FREE 1031 Exchange Webinar

Confused About 1031 Exchanges?

You are not alone! How many times have you asked a 1031 Exchange related question and received different answers?  For example, you are told that you have to hold the property for at least 12 months in order to qualify for tax-deferred exchange treatment, but then someone else says no you must hold the property for at least one year and one day to be in compliance, and then yet another person says no you must actually hold the property for at least 24 months in order to be safe should you be audited. 

Who is right? Who is wrong? Why are there so many confusing and differing answers? 

Unraveling The Mystery of 1031 Exchanges

Unraveling The Mystery
of 1031 Exchanges

Unraveling the Mystery of 1031 Exchanges is a FREE basic to intermediate level discussion on 1031 Exchanges that will help participants unravel the mystery of doing 1031 Exchanges. What is a 1031 Exchange? What are the advantages? How do you structure one? 

The discussion will include the requirements, structures, processes, strategies, and compliance issues necessary to successfully complete a 1031 Exchange, including the answer to the question "How long must you hold title to your investment property in order to qualify for a 1031 Exchange?"

Not Just Any Webinar

This is not just any webinar; it's an online educational workshop where you can roll up your sleeves, get ready to work and learn, and ask as many questions as you like. 

William L. Exeter

Register for the Unraveling the Mystery of 1031 Exchanges Webinar

About Bill Exeter 

This webinar will be presented by industry veteran Bill Exeter, President and Chief Executive Officer, Exeter 1031 Exchange Services, LLC. Mr. Exeter has has been in the 1031 Exchange Qualified Intermediary industry for over 35 years and has administered in excess of 125,000 1031 Exchange transactions during his career.  You can submit your questions to him in advance or you can ask questions throughout the live webinar.  You can also learn about other upcoming workshops, seminars and webinars.

Exeter 1031 Exchange Services, LLC Expands Into Cheyenne, Wyoming

National Expansion Continues

The executive management team at Exeter 1031 Exchange Services, LLC announced plans to continue the national expansion of its 1031 Exchange Services Group and its Trust Operations Department into other geographic markets, including Cheyenne, Wyoming.

Exeter 1031 Expands in Cheyenne, Wy

Exeter 1031 Exchange Services, LLC previously announced that Anton "Tony" Hammock had joined the company's executive management team as Senior Vice President, Chief Trust Officer and Trust Operations Manager.

New Mountain Regional Office in Cheyenne, Wyoming 

Tony Hammock has located new office space and will be opening the company's new Mountain Regional Office that will be located in Cheyenne, Wyoming during the fourth quarter in 2018.

Looking Forward to Being Part of Cheyenne, Wyoming Community 

The Exeter Group of Companies, including Exeter 1031 Exchange Services, LLC, looks forward to becoming deeply involved in the Cheyenne, Wyoming community, including participation in the "These Boots are made for Talking" (Cheyenne Big Boots).