FBO (For Benefit Of)
How an exchange escrow account is titled so the funds are clearly held for you, not owned by the QI.
Definition
"FBO" stands for "for benefit of." An exchange escrow is typically titled something like "[Qualified Intermediary] FBO [your name]," which signals that although the intermediary administers the account, the funds are being held for your benefit and are segregated from the QI’s own money. It is a titling and record-keeping convention that reinforces the separation regulators and auditors look for.
Why it matters
FBO titling, combined with segregation and dual control, is part of how a well-run QI keeps client money safe and traceable. It matters most if you ever need to prove whose money is whose.
Related terms
General education — not tax or legal advice. This explains how §1031 exchanges work in general terms and uses simplified assumptions. Rules and tax rates change and your situation is specific. Talk to a qualified CPA or tax attorney before you rely on any of it. See our full terms & legal notice.