There is no universal surrogacy payment schedule. Intended parents usually pay in stages: program setup, matching and screening, legal work and escrow, fertility treatment, pregnancy, birth, and final closeout. Due dates depend on the agreements, clinic plan, law, insurance, and events.
Luis and Aaron begin with one large budget number. It looks manageable until they see that timing matters too. Invoices, escrow deposits, and medical bills follow different clocks.
They build a calendar with ranges, owners, and triggers.
A practical payment timeline
The stages below are a planning framework, not a quote or a rule for every program.
| Stage | Costs that may come due | Trigger to confirm in writing |
|---|---|---|
| Initial planning | Consultation, records, program or case setup, financial review | Signing a service agreement or requesting work |
| Match and screening | Match-related program fees, carrier records, medical and mental health screening, travel | A match is accepted or an appointment is booked |
| Legal and insurance | Separate lawyers, insurance review, policy premiums, fund-management setup | Drafting begins or coverage must be active |
| Escrow funding | Carrier compensation and agreed expenses placed with the fund manager | Contract requirement, legal clearance, or treatment deadline |
| Transfer cycle | Clinic fees, medications, monitoring, travel, lost wages, childcare | Clinic invoice, medication order, or appointment |
| Pregnancy | Contract payments, reimbursements, insurance premiums, travel, parentage work | Pregnancy milestones, monthly dates, or documented expenses |
| Birth and aftercare | Delivery travel, newborn coverage, postpartum costs, final legal work | Hospital planning, birth, invoice, or contract milestone |
| Closeout | Late medical claims, final reimbursements, escrow release | All required bills and documents are reviewed |
Ask what “due” means in each row: paid to an agency or clinic, deposited into escrow, or kept in reserve.
Their calendar separates invoices, escrow deposits, and reserves. A possible future cost no longer looks like a bill due today.
Start with a complete surrogacy cost guide for intended parents before building the schedule.
Stage 1: program setup and early professional work
An agency agreement should state what is due at signing and what it covers. Ask whether payment is refundable, transferable to a rematch, or earned as work occurs. Records, reviews, evaluations, or other early work may be included or billed directly.
Do not compare two proposals by one headline number. Compare the work, payment date, refund rule, and services left outside the quote.
Stage 2: match, screening, and clearance
After a match, work becomes tied to a specific carrier. Records, medical and mental health steps, travel, or childcare may create new charges.
A match is not medical clearance. Ask what happens to each payment if the clinic does not approve the carrier or either side ends the match before legal work.
One fee moves to a rematch, while a completed outside evaluation does not. Luis and Aaron add that difference to their schedule.
Stage 3: legal work, insurance, and escrow
The intended parents and carrier should have independent lawyers. Fees may be due before drafting begins. Donor issues, another state, parentage, hospital work, or a dispute may cost more.
Insurance review may lead to premiums, deductibles, or a reserve. No review can promise that every claim will be paid.
Escrow is not an agency fee. ASRM notes that contracts increasingly use an account managed by an attorney or other professional. It holds money for agreed compensation and expenses. The contract and fund agreement control payment.
California is one example. Family Code section 7961 directs a nonattorney facilitator to use an independent bonded escrow depository or attorney trust account. Payment must follow the reproduction and fund-management agreements. Other states may differ.
Ask your lawyer when escrow must be fully funded or replenished. Use how to choose a surrogacy lawyer to find counsel who can explain that duty for your case.
Stage 4: transfer and pregnancy payments
Clinic work, medication, travel, lost wages, and childcare may be due before or soon after service. A failed or cancelled transfer can create new charges.
During pregnancy, the contract may use monthly dates or defined milestones for compensation and expenses. Never assume a standard start date. Ask the lawyer and escrow manager to show the exact schedule.
ASRM states that compensation should not depend on the birth of a healthy child. It covers time, effort, inconvenience, and risk under the lawful agreement. It is not a price for a baby or a guaranteed outcome.
Luis and Aaron add an escrow balance check before each new phase. They do not negotiate reimbursements directly with their carrier, Maya, at every turn. The fund manager follows the documents. That helps protect their relationship.
Stage 5: birth, postpartum costs, and closeout
Late pregnancy may bring parentage, travel, hospital, insurance, and newborn-planning costs. An early delivery can move them forward.
Bills may continue after birth. They can involve postpartum care, agreed pumping, travel, lost wages, legal filings, or late claims. Keep escrow open until the documents allow closure.
California Family Code section 7962 requires a qualifying agreement to disclose how intended parents will cover medical expenses for the carrier and newborn. If health coverage is used, the disclosure addresses policy terms, possible carrier liability, liens, other coverage, and notice rules. This is one state’s law, not a national schedule.
Review legal and insurance protection resources before deciding that the birth ends the budget.
Fixed, scheduled, and variable costs are not the same
Sort every line into one of three groups:
- Fixed or contracted: a stated fee with a stated trigger.
- Scheduled but adjustable: a known type of payment whose timing or total may change.
- Variable or contingent: a cost that appears only if an event occurs.
Variable events include a rematch, extra transfer, lost wages, travel, insurance change, early delivery, or added legal work.
A reserve is not proof that these events will happen. It keeps one change from disrupting required payments.
Payment risks to put in writing
Pause when a program or professional cannot explain:
- who holds client funds;
- when a fee becomes earned or nonrefundable;
- how a rematch affects prior payments;
- what triggers an escrow deposit or refill;
- who approves reimbursements;
- how often intended parents receive statements;
- what happens when a claim is denied; or
- how long funds may remain after birth.
Do not send contract payments outside the approved process because someone asks by text. Verify any changed banking instruction through a known phone number. Financial fraud can target urgent transfers.
Your payment-schedule action list
- Request one written schedule covering agency, clinic, legal, insurance, escrow, travel, and birth work.
- Add the trigger, payee, due date, amount or range, and refund rule for every line.
- Separate invoices from escrow deposits and reserves.
- Ask what repeats after a failed transfer or rematch.
- Confirm the minimum escrow balance and replenishment process.
- Review statements and reconcile each disbursement.
- Keep a reserve for variable events and late medical claims.
- Ask a qualified tax professional about your facts.
IRS Publication 502 says listed payments for an unrelated gestational surrogate cannot be included as medical expenses because they are not for the taxpayer, spouse, or dependent. Tax facts can be complex. Keep records and get current advice.
Questions intended parents often ask
Is the full surrogacy cost due before matching?
Not in every program. Some fees may be due before matching, while other payments depend on a match, service, contract, clinic cycle, or pregnancy milestone. Ask for the exact written schedule.
When is escrow usually funded?
The timing comes from the agreement, fund-management terms, program rules, and applicable law. Many arrangements require funding before treatment or another defined milestone. Your lawyer and escrow manager should confirm the date and amount.
Are unused escrow funds returned?
Often, remaining funds are returned after approved payments, claims, and closeout duties are complete. The contract and fund-management agreement control. Do not assume funds are available immediately after birth.
Can intended parents deduct surrogacy payments on federal taxes?
IRS Publication 502 states that the listed payments for an unrelated gestational surrogate are not includible as medical expenses. Other parts of a family-building journey may have different tax treatment. Ask a tax professional to review the current law and your records.
The full intended parent surrogacy process is easier to plan when each payment is tied to a real stage instead of one uncertain total.
Sources
- American Society for Reproductive Medicine, “Consideration of the Gestational Carrier: An Ethics Committee Opinion” (2023)
- California Legislative Information, Family Code § 7961
- California Legislative Information, Family Code § 7962
- Internal Revenue Service, Publication 502, “Medical and Dental Expenses”