Question 1

Is your IOTA trust account insured?

Accepted Answer

Florida IOTA trust accounts are protected by FDIC up to standard limits and by the Florida Bar Foundation's supplementary protections for attorney trust accounts. For very large deposits, we can discuss split-bank arrangements.

Question 2

How much does paymaster service cost?

Accepted Answer

Pricing depends on the deposit size, duration, and number of disbursements. For most transactions we charge a flat fee plus per-disbursement fees. Call for a quote.

Question 3

Can you serve as paymaster for an out-of-state transaction?

Accepted Answer

Sometimes — it depends on whether Florida law reasonably governs the escrow. We evaluate each situation.

Question 4

What is the difference between paymaster and escrow?

Accepted Answer

They overlap heavily but the terms emphasize different roles. 'Escrow' typically refers to holding funds and documents pending closing of a transaction. 'Paymaster' typically refers to a neutral disbursement function — receiving funds, holding them per agreed terms, and disbursing on triggers (often over time, often to multiple parties). We perform both and adapt the agreement to the specific commercial reality.

Question 5

How does an indemnification holdback work in a business sale?

Accepted Answer

After closing, a portion of the purchase price (commonly 5–15%) is held in escrow for an agreed period (often 12–24 months) to backstop the seller's representations and warranties. If the buyer discovers a breach (undisclosed liability, misstated revenue), it can claim against the escrow. We draft the holdback agreement: claim procedures, dispute resolution, and release conditions.

Question 6

What information do you need to set up a paymaster engagement?

Accepted Answer

Identity of all parties (with KYC documentation), source of funds documentation, the underlying agreement governing disbursement triggers, wire instructions for each disbursement recipient, and the proposed holding period. We typically can stand up an engagement within 48 hours once documentation is complete.

Question 7

Are there limits on the size of escrow you can hold?

Accepted Answer

Florida IOTA accounts at major banks carry standard FDIC protection up to $250,000 per qualifying party. Larger amounts are usually handled via depositor splits across institutions, ICS sweep arrangements, or use of a Florida bank with deposit guarantees. We design the holding structure to fit the deposit size.

Question 8

Can you handle international wire transfers from foreign senders?

Accepted Answer

Yes. Many of our paymaster engagements involve international parties. We provide compliant SWIFT instructions, work with our bank's international wire team, and confirm receipt of funds with the originating party. AML/KYC documentation requirements apply to international senders.

Paymaster Services

About paymaster services

What we handle

Escrow and holdback agreements

Staged disbursements

Business acquisition holdbacks

Commodities and consulting escrows

Questions we hear

Related services

Commercial Closings

Real Estate Investors & Wholesalers

Private & Hard Money Lenders

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