Comments on: Bankruptcy Court Holds No Trust Exists in Commingled Accounts http://allstates1031.com/blog/index.php/2009/05/18/bankruptcy-court-holds-no-trust-exists-in-commingled-accounts/ 1031 Chat by All States 1031 Exchange Facillitators Thu, 17 May 2012 14:51:17 +0000 http://wordpress.org/?v=2.7.1 hourly 1 By: Moore McLaughlin, Esq. http://allstates1031.com/blog/index.php/2009/05/18/bankruptcy-court-holds-no-trust-exists-in-commingled-accounts/comment-page-1/#comment-2 Moore McLaughlin, Esq. Tue, 09 Jun 2009 21:02:48 +0000 http://allstates1031.com/blog/?p=22#comment-2 Lori, thanks for taking the time to read our blog and providing your valuable comments. The LandAmerica case is quite enlightening on several levels. I respectfully disagree with your characterization of my statements, except the part about them being self-serving. As an independently owned QI, we take every opportunity to distinguish All States 1031 from our competition. I tend to focus on the areas that our customers are concerned with, such as safety and security of their exchange funds. What we have chosen to do is to hold the exchange proceeds in the safest, most liquid, investment possible. To this end, we establish a new separate segregated money market FDIC-insured account for every exchangor. We use only those accounts that can be completely liquidated at a moment's notice. I have been told by those who operate several of the larger QIs that our model is not possible. Yet, we do it every day. So, I sleep well at night knowing that I have done everything possible to provide the highest level of protection for my customers. The same standard that I wish the IRS would impose on all QIs. Lori, thanks for taking the time to read our blog and providing your valuable comments. The LandAmerica case is quite enlightening on several levels. I respectfully disagree with your characterization of my statements, except the part about them being self-serving. As an independently owned QI, we take every opportunity to distinguish All States 1031 from our competition.

I tend to focus on the areas that our customers are concerned with, such as safety and security of their exchange funds. What we have chosen to do is to hold the exchange proceeds in the safest, most liquid, investment possible. To this end, we establish a new separate segregated money market FDIC-insured account for every exchangor. We use only those accounts that can be completely liquidated at a moment’s notice. I have been told by those who operate several of the larger QIs that our model is not possible. Yet, we do it every day. So, I sleep well at night knowing that I have done everything possible to provide the highest level of protection for my customers. The same standard that I wish the IRS would impose on all QIs.

]]> By: Lori De Martini http://allstates1031.com/blog/index.php/2009/05/18/bankruptcy-court-holds-no-trust-exists-in-commingled-accounts/comment-page-1/#comment-1 Lori De Martini Tue, 09 Jun 2009 17:00:01 +0000 http://allstates1031.com/blog/?p=22#comment-1 Your statements are incorrect, misleading and self-serving. In short, it is clear that you have extrapolated for the purpose of disparaging larger QIs. You imply that the court's ruling was premised upon a distinction between master/segregated sub accounts and individual segregated accounts. This is incorrect. The only issue before the court was "whether the parties intended to create a trust despite the absence of express language to do so" (Memorandum Opinion, Case No. 08-35994-KRH, p.16). Regarding the issue of "segregated" accounts, the court stated that "the requirement of Segregated Accounts may provide evidence on the traceability of the funds, but that alone does not create a trust. (p.19). Your statements are incorrect, misleading and self-serving. In short, it is clear that you have extrapolated for the purpose of disparaging larger QIs.
You imply that the court’s ruling was premised upon a distinction between master/segregated sub accounts and individual segregated accounts. This is incorrect. The only issue before the court was “whether the parties intended to create a trust despite the absence of express language to do so” (Memorandum Opinion, Case No. 08-35994-KRH, p.16). Regarding the issue of “segregated” accounts, the court stated that “the requirement of Segregated Accounts may provide evidence on the traceability of the funds, but that alone does not create a trust. (p.19).

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