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  1. #1
    Join Date
    Mar 2014
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    2

    Default Using Escrow or Trust Accounts for International Commercial Transactions

    I understand this is a estate discussion forum, but as trusts are most typically use in estates I thought this would be the best place to post my question.

    I'm interested in utilizing a trust or escrow to implement a set of rules for the commercial trade of goods. It seems either can be crafted to provide a flexible and convenient alternative to letters of credit. Before I continue to investigate I wanted to get some of your comments on the following:

    1. Establishment and nature
    I assume both are preceded by a respective trust or escrow agreement and believe trusts can be more sophisticated and structured hence more adequate then an escrow in cases where operations are more varied/complex in contrast to simple 1 time purchase or sale transactions (i.e. real estate). Please provide any further details you can that illustrate your point.

    2. Level of service and fraud protection/risk
    I intend on making an initial $50,000.00 deposit and would require the trust / escrow service to revise shipping documents and inspection certificates before making a disbursement. Each shipment would have an average value of $25,000.00 and if this mechanism workouts out I intend on incrementing my volume within a week or two to 3 or 5 shipments per week. That considered why in my case would YOU choose the corporate trustee or escrow service from either a bank, attorney, financial services company and do the levels of fraud risk/protection vary with each?


    Generalized responses in absence of considering corporate structure, stakeholders or any other more complete details are welcome. I just want to clarify general notion's of each before contacting any professional directly.

  2. #2
    Join Date
    Sep 2005
    Location
    Behind a Desk
    Posts
    98,846

    Default Re: Using Escrow or Trust Accounts for International Commercial Transactions

    You're in what U.S. state?

  3. #3
    Join Date
    Oct 2006
    Posts
    15,983

    Default Re: Using Escrow or Trust Accounts for International Commercial Transactions

    Quote Quoting elmerf
    View Post
    I understand this is a estate discussion forum, but as trusts are most typically use in estates I thought this would be the best place to post my question.

    I'm interested in utilizing a trust or escrow to implement a set of rules for the commercial trade of goods. It seems either can be crafted to provide a flexible and convenient alternative to letters of credit. Before I continue to investigate I wanted to get some of your comments on the following:

    1. Establishment and nature
    I assume both are preceded by a respective trust or escrow agreement and believe trusts can be more sophisticated and structured hence more adequate then an escrow in cases where operations are more varied/complex in contrast to simple 1 time purchase or sale transactions (i.e. real estate). Please provide any further details you can that illustrate your point.

    2. Level of service and fraud protection/risk
    I intend on making an initial $50,000.00 deposit and would require the trust / escrow service to revise shipping documents and inspection certificates before making a disbursement. Each shipment would have an average value of $25,000.00 and if this mechanism workouts out I intend on incrementing my volume within a week or two to 3 or 5 shipments per week. That considered why in my case would YOU choose the corporate trustee or escrow service from either a bank, attorney, financial services company and do the levels of fraud risk/protection vary with each?


    Generalized responses in absence of considering corporate structure, stakeholders or any other more complete details are welcome. I just want to clarify general notion's of each before contacting any professional directly.
    This sounds a bit like a homework question, and we generally do not do homework.

    However, wouldn't it be far more effective to simply send the shipments COD? Yes, that is quite possible and not unusual to do internationally.

  4. #4
    Join Date
    Mar 2014
    Posts
    2

    Default Re: Using Escrow or Trust Accounts for International Commercial Transactions

    Thanks.
    Quote Quoting Mr. Knowitall
    View Post
    You're in what U.S. state?
    - - - Updated - - -

    Here's an idea, I'll email the admin of the forum to erase my username from this post, put yours and replace my text with testimony of how great COD has worked in the past for you or anyone where it wasn't asked, is an option, nor even 1% relevant to the topic nor contents of this discussion.
    Quote Quoting llworking
    View Post
    This sounds a bit like a homework question, and we generally do not do homework.

    However, wouldn't it be far more effective to simply send the shipments COD? Yes, that is quite possible and not unusual to do internationally.

  5. #5
    Join Date
    Sep 2005
    Location
    Behind a Desk
    Posts
    98,846

    Default Re: Using Escrow or Trust Accounts for International Commercial Transactions

    If you choose not to identify your state, it can be reasonably inferred that you're not in the U.S., and you should consult a lawyer in whatever nation(s) you're conducting business.

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