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Released on October 8, 2024, a new book called Save Money on Surrogacy: How to Save $100,000+ on Surrogacy in the United States   by Yifat Shaltiel, Esq. shares surrogacy industry secrets and hacks to make your surrogacy journey more affordable. Yifat Shaltiel, a surrogacy lawyer and agency owner of Surrogate Steps, wrote her book to act as an informational guide to help others grow their families while saving as much money as possible so that more families can access surrogacy and advanced reproductive technology.  Book Review: Yifat Shaltiel’s book is a roadmap to navigate a surrogacy journey  without breaking the bank. Previous guides we have seen  focus on the basic steps of the surrogacy journey, whereas this book shares how to save money at each step. Shaltiel does an incredible job of blending legal expertise with practical advice, making it a valuable resource for anyone considering surrogacy to grow their family.  The book is especially helpful in breaking down the many ways a surrogacy journey can differ. She answers a common question “how much is a surrogacy journey” by emphasizing that there are many factors that can impact cost. For instance, she explains the option of paying for an agency’s matching services or going without one to save costs. The pros and cons are laid out clearly: while skipping an agency can save money, it also means you’re responsible for more of the planning, which takes time and effort. The same goes for fertility clinics—Shaltiel offers excellent advice on what to look for and how to verify statistics, which can make a big difference in both costs and results.    Surrogates are compensated a base amount on top of out of pocket fees, lost wages due to traveling for medical appointments, and possibly travel costs if they have to fly to attend appointments. Shaltiel shares that regardless of where IPs are located, the location of the surrogate affects the total cost of the surrogacy journey. It is helpful to understand which states have higher surrogate base compensation when you are in the process of working with an agency or proceeding with an independent journey to select a surrogate. Base compensation can vary significantly between states but it is not always determined by cost of living. This chapter in the book can help IPs narrow down the states when they are searching for a surrogate match.  Some journeys can be altruistic where the surrogate is not getting compensated by the intended parents (IPs). The total cost of a surrogacy journey can decrease significantly if the surrogate is not being compensated, like a family member volunteering to be a surrogate. An altruistic surrogacy journey will significantly reduce the costs since there is no base compensation.  Another important area the book covers is health insurance options for IPs if their surrogate does not have surrogacy-friendly insurance. Insurance is important to cover any medical costs or unexpected complications. She compares multiple scenarios with different insurance options so that readers can decide what is best for their situation.  Real-life experiences, like those shared by a couple who had two successful surrogacy journeys with Shaltiel’s agency Surrogate Steps , show how Shaltiel’s recommendations worked for them. They were able to cut costs in ways they had not expected, which makes this book a must-read for anyone considering surrogacy and who is looking for helpful tips affording the process. Save Money on Surrogacy is filled with insider knowledge and advice that can make the difference between a costly journey and one that is more affordable and manageable. Conclusion:   These are just a few key points that make this guide stand out but Save Money on Surrogacy  has many more points to reveal to the reader. Shaltiel has taken her experience and personal journey and transformed it into a guide that offers practical, money-saving tips for every step of the process.  For further reading on ways to save money on your surrogacy journey, check out our articles on Seedcoach, our financial coaching program, our blog on surrogacy grants , and using employee benefits  like legal insurance  for your IVF journey. We at Tsong Law Group are here to assist you with the legal needs of your surrogacy journey. Our surrogacy attorneys, licensed in California, Washington, New York, Arizona, Illinois, and Oklahoma are ready to support you every step of the way. Contact us now to get started.

If you are a surrogate, you might have wondered, "What if my intended parents no longer want the baby?" Once the surrogate is pregnant, the surrogacy agreement cannot be terminated while she remains pregnant, unless an incurable material breach were to occur where the surrogate is genetic related of the child.     Worst Case Scenarios: Intended Parents Backing Out      Intended parents who enter the surrogacy agreement as a couple can get divorced or separate  and then might no longer want the child they intended to raise together. What happens then? Will the surrogate have to be a parent? Our surrogacy contracts make sure to include a section for this scenario. Both parties prior to the embryo transfer will sign the agreement stating the intended parents both will remain parents of the child and the intended parents or an applicable court of law will determine who has custody.  This situation happened in a famous California case, In re Marriage of Buzzanca.   In Buzzanca, a donated embryo was implanted in the surrogate, the parents then divorced, and the intended father wanted to be found to be not the father. The surrogate also requested that she not be the mother. The court found that both intended parents were the parents because the child was procreated and born as a result of the medical procedure they consented to. Indeed, the court found that the intended father was the father even if the intended mother would assume full custody of the child.    What if there is a medical issue with the fetus and the intended parents do not want the child?  Again, the surrogacy agreement as well as state law will speak to what happens regarding whether intended parents can make a decision to terminate the pregnancy and when. In general, regardless of this provision and regardless of birth defects or abnormalities, the intended parents are still required by the surrogacy agreement to complete a parentage action and be adjudged the legal parents.     What if the intended parents run out of money in the middle of the pregnancy or stop payments contrary to the surrogacy agreement because they don’t want the child? This is a possibility in cases without an independent escrow company and why we urge the surrogate to ensure there is an independent and adequately funded escrow account in place. In some states like California, Illinois, and New York,  this is actually required by law, especially if there is an agency involved. As long as there is an escrow account in place that is sufficiently funded and the surrogate is not in breach of the agreement, the escrow holder should continue to make payments, even if the intended parents wish to stop the payments.     Another worst scenario would be if the intended parents disappear or pass away after the pregnancy.  In this situation, no parentage action would be filed by the intended parents. With respect to death or disability, our surrogacy contracts include an alternative guardian that the intended parents pick out during the negotiation phase and specify they should designate someone in their will to be a guardian. If the intended parents do not file a parentage action, the surrogate can file a parentage action herself and get a judgment that the intended parents are the parents.     One of the keys to every surrogacy arrangement is the gestational surrogacy agreement , a legal contract that clearly outlines and lists the responsibilities of both the intended parents and the surrogate. While the agreement is usually drafted by intended parents and might seem to favor them, the surrogate should have a separate attorney who will represent her vigorously to make sure not only that the contract is fair and what is expected and ensure that in no worst case scenario will intended parents be able to avoid a judgment of parentage. The surrogacy agreement should have a provision that the surrogate’s attorney can seek a parentage judgment if the intended parents do not do so timely and the surrogate’s attorney should be experienced enough to obtain a parentage judgment in the state with or without intended parents' cooperation.     Even if the surrogate breaches the agreement, the intended parents will still be legally responsible for taking custody of the child after its birth, so long as the surrogate is not the biological mother of the baby. While the surrogate may no longer get paid or may be responsible for damages from breach, the intended parents’ responsibility for the child remains intact.     If, after the parentage judgment is granted, the intended parents still do not wish to be the parents of their child, they can place the child for adoption. This is the legal way for intended parents to not be responsible for the child that is born. There are many prospective adoptive parents who would be interested in the adoption of a newborn, even one with disabilities or birth defects. If the intended parents do not pick up the child, the child will be taken by the state or county and placed into foster care.     We have written on the worst case scenario  of the surrogate not wanting to give the baby to intended parents. The results for the surrogate’s worst case scenario of being left with the baby is the same as the one for the intended parents. The worst case scenarios are rare and unlikely to happen, however, whether you are an intended parent or surrogate, you should choose counsel who is capable and experienced enough to navigate the situation and can ensure the surrogacy agreement addresses each scenario. The surrogacy lawyers at Tsong Law Group are capable of doing so. Licensed in California, New York, Arizona, Illinois, Washington and Oklahoma and with over 100 five star reviews on all reviewing platforms we are capable attorneys for your surrogacy journey. Contact us now.

UPDATE: The Equality for Every Family Act (HB2683) was signed into law by Governor JB Pritzker in December 2025 and is now in effect. Bold text throughout this article reflects changes under the new law. Read the full breakdown here . Overview of the Illinois Gestational Surrogacy Act Since 2005, the state of Illinois has had a surrogacy law on the books. Unlike other states, the Illinois Gestational Surrogacy Act has a few requirements that are distinct and not found in other states like that of in California and Washington . In this article, we discuss the requirements for surrogate and intended parents, and as well as the legal requirements for surrogacy agreements. Requirements for Surrogates Under the Illinois law, a surrogate must meet the following requirements: She must be over 21 years old; She has given birth to at least one child; She has completed a medical and mental health evaluation; She has undergone a legal consultation regarding the gestational surrogacy agreement with her independent attorney. Under the Equality for Every Family Act, the surrogate’s independent attorney must now be licensed in Illinois, and the intended parents are required to pay for the surrogate’s legal fees. She has a health insurance policy that covers major medical treatments and hospitalization, and the term extends throughout the duration of the expected pregnancy and eight weeks after the birth of the child. (Note, the policy may be paid for by intended parents). Additionally, the surrogate retains the right to choose her own treating providers. Requirements for Intended Parents Meanwhile, Intended Parents have the following requirements: They must contribute at least one of the gametes of the pre-embryo to be carried by the surrogate; Genetic connection no longer required: The Equality for Every Family Act removes the requirement that intended parents contribute at least one gamete. This is a significant change that opens up surrogacy in Illinois to those using donated embryos or both donor sperm and donor eggs. At least one intended parent must have a medical need for the surrogacy as evidenced by a physician’s affidavit; “Medical need” replaced with “infertility”: The new law replaces the physician affidavit requirement for “medical need” with a representation that intended parents are experiencing “infertility” as defined in Section 356m(c) of the Illinois Insurance Code. That definition covers three pathways: (1) not establishing or carrying a pregnancy to live birth after 12 months of trying (or 6 months if over age 35), (2) an inability to reproduce as a single person or with a partner without medical intervention, or (3) a physician’s findings based on history, age, exam, or testing. This change is helpful because intended parents need only represent they experience infertility, which includes LGBTQ intended parents who cannot conceive without assistance. They also must have completed medical and mental health evaluations; and They have undergone a legal consultation with their own independent counsel . The intended parents’ independent counsel must also now be licensed in Illinois. The Agreement and Legal Process The surrogacy agreement as well as the medical affidavit between the parties must be witnessed by two witnesses. Once the surrogate is pregnant, the Illinois Parentage Act requires: The surrogate and her spouse certify that she is carrying the child for the intended parents and did not provide a gamete for the child; The intended parents certify the child was conceived using a gamete of one of the intended parents and not of the gestational carrier or spouse; Under the Equality for Every Family Act, the certification requirements in item (2) above have been updated: the genetic-link language has been removed, so intended parents and the physician no longer need to certify that the child was conceived using a gamete of one of the intended parents. An Illinois licensed physician certifies the same as (2); and The attorneys for intended parents and surrogate certify compliance with the Gestational Surrogacy Act. Upon the hospital’s receipt of the certifications, the Illinois' Department of Public Health will issue a birth certificate with the intended parents' names on it. This procedure does not involve a court judgment which means some international or same-sex intended parents may seek a parentage judgment to protect their rights. The new law also creates a second route to establish parentage: in addition to the existing certification-at-birth process, families can now obtain a court judgment of parentage on a standard record with a short decision timeline when filings are complete. Additional Contract Provisions Under the Equality of Every Family Act Escrow requirement: Compensation and reimbursements must now be held by an independent escrow agent that is not affiliated with either side’s law firm. Marital status changes: If the surrogate marries or divorces after signing, the agreement remains valid and the new spouse does not become a presumed parent. The same principle applies to intended parents if their marital status changes. Termination before embryo transfer: Any party may terminate the agreement before an embryo transfer or between failed transfers by written notice, with no penalties or liquidated damages absent fraud. Intended parents remain responsible for agreed expenses that accrued up to the termination date. Professional Legal Assistance For a seamless process, make sure to consult with a lawyer who specializes in surrogacy law. The attorneys of Tsong Law Group have experience in the areas of gamete donation, surrogacy, family law, and more. They are also licensed in the states of Illinois, California, New York, Washington, Arizona, and Oklahoma. Contact us now if you need assistance. This article is for informational purposes only and should not be relied upon without additional research or consulting an attorney. This article is not legal advice and does not create an attorney-client relationship with the reader.

"Our Father” is a Netflix original documentary film directed by Lucie Jourdan. It follows the story of the former fertility specialist Dr. Donald Cline who deceptively inseminated dozens of patients with his own sperm between 1979 and 1986. This documentary film raises the question about how the legal system views those seeking control over their own reproductive choices and restitution when that autonomy is violated. Synopsis of the film Our Father intercuts interviews with the siblings and Dr. Cline’s victims with re-enacted footage of some of their experiences. Although Dr. Cline was never interviewed, his courtroom testimony is recreated (or is shown). Dr. Cline’s acts began being discovered when Jacoba Ballard, one of the victims of Dr. Cline’s deceptive sperm donations, recalled how at an early age she thought she was adopted, as she had her blonde hair and bright blue eyes compared to her family’s dark-hair and dark-features. She learned at an early age she was conceived via a sperm donor, who was supposedly a resident-in-training who had donated only a few times. Once at home DNA testing became available, she set out to find her half-siblings. From there, her life changed after she learned that she had seven half-siblings. Jacoba later on reached out to her newfound family members. Researching the mystery of their shared relation, Jacoba and her siblings soon discovered with horror what their parents’ trusted doctor had done. The number of their confirmed siblings continued to grow to at least 94 as more people added their DNA to the database. While Dr. Cline never reveals his motivations, the documentary film suggests Dr. Cline may have been motivated by his interest in an extreme Christian sect called “Quiverfull,” where it encourages followers to reproduce as prolifically as possible to meet God’s mandate to “be fruitful and multiply” and Dr. Cline, in addition to engaging with patients and staff in prayer before treatments, had an affinity for the verse Jeremiah 1:5 (“Before I formed you in your mother’s womb I knew you”). What happened to Dr. Cline In 2017, a criminal investigation was launched when four of the "children" filed a complaint against Dr. Cline to Indiana's Attorney General. However, during that time, there is no law or legal structure in place which criminalizes the act of a doctor inseminating a patient with his own sperm. Therefore, he could not be criminally charged for his deceptive insemination. Cline was instead brought to trial facing two counts of felony obstruction of justice, for lying during the investigation. Despite pleading guilty to two felony counts of obstruction of justice, he received no jail time and only a one-year suspended sentence and a $500 fine. He also lost his medical license, but he had retired nearly a decade. Little is known about his whereabouts now, but he remains a free man. Legal Fallout Following the case of Dr. Cline, in 2019, Indianapolis enacted Senate Enrolled Act 174 which protects individuals and couples against fertility fraud and deception. The law makes it a level 6 felony if someone makes a misrepresentation involving a medical procedure, medical device or drug and human reproductive material. The law also creates a civil cause of action for fertility fraud, making it possible for victims to get reimbursed for the costs of the fertility treatment plus up to $10,000 in damages. The law will also affect health care providers who use their reproductive material without the donor’s consent, or if the doctor uses the sperm or eggs in a manner the donor didn’t sign off on. Recently, some victims/children of fertility fraud also spoke to AAAA surrogacy attorneys at the AAAA conference in May 2023 including Jacoba Ballard who was featured in “Our Father. Dr. Cline’s case is not unique. In 2020, a Texas doctor was under investigation for allegedly impregnating multiple fertility clinic patients using his own sperm instead of the donor sperm they chose. Dr. Kim McMorries of Nacogdoches, Texas had fathered at least seven children of his clinic patients, with an eighth child from sperm he donated while he was medical student. In his defense, Dr. McMorries stated that when this occurred, it was not considered wrong. However, the medical board sought to impose remedies including revocation of his medical license. To prevent this, the doctor filed a suit enjoining the medical board, citing a seven-year statute of limitations while also claiming that the board was being pressured by news coverage. Today, he is still actively practicing medicine. This also prompted the state to pass a law criminalizing doctor using their own sperm to inseminate patients without their consent as sexual assault. Our Take/Conclusion “Our Father” is chilling, cautionary tale which highlights the lack of legal recourse afforded to the children and parents who were victims of fertility fraud. This sort of donor fraud shakes families at the core because it violates the trust patients have in their doctor and the identity of their children. If you are interested in a different kind of documentary, Our Father is worth a watch. The documentary film premiered on May 11, 2022, and has been watched for 42.6 million hours by viewers. “Our Father” also shows us that the rapid development and ubiquity of DNA testing is changing the future of anonymous gamete donations and reminds us the importance to have written contracts in place, and a lawyer experienced and knowledgeable in fertility law to review or draft your egg or sperm donation contracts. Please contact Tsong Law Group for more information.

The Sinister Surrogate is a 2018 drama and thriller film that stars Brian Ames and Kelly Thiebaud. The movie features a perfect couple Danielle and Josh having everything in their lives: a beautiful house and successful lives. Despite this, there is one thing that the couple feels like missing: a child. They had multiple attempts to start a family, however, it all ended up in failure, giving them the chance to go for surrogacy route. While on their surrogacy journey, they meet Kailee, their perfect candidate as a surrogate. She is cheerful and lively and her pregnancy goes along smoothly. All is well, until after she gives birth. Kailee the surrogate kept on coming to Danielle and Josh’s family surprisingly offering them different gifts. Although this is supposed to be normal, Danielle can't help but feel there's something dark lurking behind Kailee the surrogate. This left the couple unsettled thinking that perhaps she felt attached to their daughter. As the story progress, it is revealed Kailee’s plan is to take Danielle and Josh’s daughter and claim her as her own. Real-World Accuracy In the first act, the movie examines how couples choose surrogacy as an option after unsuccessful fertility treatments. When Kailee was picked as the ideal surrogate candidate for the Danielle and Josh, the latter are very supportive and engaged throughout the pregnancy. In reality, intended parents are allowed to attend pregnancy appointments (though not birthing classes), and the delivery of their surrogate. One major issue portrayed in the movie is the contact by Kailee post-pregnancy. In reality, while many parties can continue to have contact after the delivery, others choose to have no contact with their surrogate post-pregnancy. There is no indication in this movie that the parties addressed contact after delivery in their gestational surrogacy contract. If Danielle and Josh were clients of Tsong Law Group, they would have had a section in the surrogacy contract on permissible contact. This section would allow either party to cease contact in writing, and hold the other in breach. It should also be noted that there is no legal uncertainty about who is the parent. Kailee should have signed paperwork that relinquishes and waives all her claims to claim parental rights and stipulated to a judgment that Danielle and Josh are the parents. One thing that is also disappointing in the movie was the ability of the agency to put a stop to Kailee’s plan but failed to do so. Kailee’s interference would have been prevented only if the agency had properly screened Kailee in the first instance. It is apparent that Kailee has never given birth before. Under ASRM guidelines, surrogates must have experience delivering babies so that the doctors know they are ideal candidates without complicated deliveries. I am unaware of any U.S. agencies that allow surrogates who have not given birth. Even had she were qualified, Kailee would have undergone a psychological screening to assess whether she had any mental illnesses or understood her role as a surrogate or would be attached to a child. Further, she should have had her own separate attorney to review the surrogacy contract, ensuring she understood her role as the surrogate, understood permissible contact, and understood she had a right to receive psychological support during the journey. Assistance from the agency during the journey would also be warranted. Agencies often provide support group meetings as well as psychological assistance. If Kailee was surrounded by surrogates who understood their role, and had to discuss how she felt, she might have appropriate feelings for the child she was carrying, or perhaps red flags would be raised to show she needed more psychological assistance. Conclusion: If you’re into thrillers or dramas, The Sinister Surrogacy is a movie still a miss. Perhaps not surprising, the movie is another by-the-numbers that calls on the trope of the obsessive surrogate who wants the baby, though the actors playing Danielle and Josh do a good job. Although the movie depicts a bit of what happens in reality in the first scenes of the movie, it veers into camp with the all-too familiar storyline of the obsessed surrogate. We don’t think that The Sinister Surrogacy is realistic and the concept of the surrogate wanting to claim the baby is extremely overblown in movies. However, whether you are an intended parent or a surrogate, you should always have competent, experienced counsel for your journey, who can answer all your questions. Contact us today.

'Baby God,’ directed by Hannah Olson, explores into the deceptive acts of Dr. Quincy Fortier, a fertility doctor whose actions profoundly affected many lives. Like our previous review of ‘Our Father,’  in which Dr. Donald Cline deceptively used of his own sperm, 'Baby God' explores Dr. Fortier’s deceptive acts over the course of decades.  Dr. Fortier was highly regarded in the medical community for his expertise in assisting couples struggling with fertility issues; he even established Las Vegas's first women's hospital. His career began in the early 1960s, a time when infertility was a taboo subject, and viable options were scarce. Additionally, the absence of frozen sperm technology, which only became common in the 1980s, further limited available solutions.  However, beneath his professional façade lay a troubling truth: Dr. Fortier used his own sperm to impregnate numerous of his female patients without their knowledge or consent.  The documentary presents firsthand testimonies from individuals, often referred to as ‘Fortier's children,’ who discovered their genetic connection to Dr. Fortier through DNA testing. These personal stories shed light on the profound impact of the shocking discovery on their sense of identity and family dynamics.  ‘Baby God’ also features accounts from patients who sought Dr. Fortier's assistance with fertility issues, only to later uncover his deception. Wendi Babst, whose experience is highlighted in the documentary and is among the first interviewed, learned of her numerous genetic matches through DNA testing. Many families similar to Wendi’s share a deep sense of betrayal as they placed their trust in Dr. Fortier's expertise and integrity.    What are the legal aspects of the movie?  While there is discussion in ‘Baby God,’ of potential legal action or considerations of accountability, the documentary film does not include scenes of individuals consulting lawyers or engaging in legal proceedings. As Dr. Fortier is deceased, it appears his victims have no recourse.     Contrasts in Legal Standards: From Dr. Fortier's Time to Today  The legal standards regarding assisted reproduction and donor conception portrayed from the mid-to-late 20th century differ significantly from today's standards. During Dr. Fortier's time, donor anonymity was common, and regulations surrounding assisted reproductive technologies were less comprehensive. At the time, no law prohibited the sort of act Dr. Fortier engaged in and donor-conceived individuals faced barriers to accessing information about their genetic origin.  Today, legal standards emphasize transparency, accountability, and increasing the rights of donor-conceived individuals. Laws in Washington  and  California  among other states grant donor-conceived individuals the right to access medical information about their donors and a potential right to contact them, and ASRM guidelines  ensure safety, ethical practice, and the protection of all parties involved in assisted reproduction. Some states have enacted laws that criminalize donor deception.   Where Is Dr. Fortier Now?  Dr. Quincy Fortier passed away in 2006, leaving behind a legacy tainted by controversy and ethical scrutiny. He is no longer alive to be held accountable for his actions. However, the questions raised by his unethical behavior continue to resonate within the medical community and society at large, serving as a stark reminder of the importance of ethical standards and accountability in healthcare.   As viewers reflect on the revelations brought to light in ‘Baby God,’ they are left to contemplate the lasting consequences of Dr. Fortier's actions and the ongoing efforts to ensure transparency and integrity within the field of reproductive medicine.    Should You Watch It?  While “Baby God” offers a chilling story, the documentary is unfortunately very slow paced. With many transitions and without a set timeline, the exposition jumps from victim to victim and the pacing leaves a lot to be desired. All the content could probably have fit in a half hour show. However, if enjoyed “Our Father” or enjoy learning more about the wild west days of fertility, then “Baby God” is worth a view.   In the pursuit of parenthood, it's essential to consider all aspects, including legal matters. If you or someone you know is navigating fertility treatments and requires legal guidance, don't hesitate to contact us now.

Previously on our blog, we have discussed whether egg donor compensation is taxable  and whether surrogacy expenses are tax deductible . In this blog, we will cover if intended parents may deduct from their taxes the expenses for an egg donor as deductible medical care expenses under the 26 U.S. Code Section 213(a). The answer is maybe, and surprisingly, more expenses than those that directly relate to medical expenses.  Under Section 213(a), taxpayers may deduct expenses for medical care that exceed 7.5 percent of adjusted gross income. Medical care can be defined as amounts paid for diagnosis, cure, mitigation, treatment, or prevention of disease, 26 U.S. Code Section 213(d)(1)(a). This code also aims at issues affecting bodily functions or structures. The IRS states that preparatory expenses directly related to a medical procedure may also be deductible.   In the private ruling letter released on May 5, 2003 , a taxpayer was seeking deductions for medical expenses when she attempted pregnancy using donated eggs. We can deduce the taxpayer is a woman, because she had previously been unable to become pregnant using her own eggs and sought to implant the fertilized egg into her own body. She requested deductions for (1) the donor’s compensation (described as a fee for her time and expenses), (2) the agency fee for obtaining the donor, (3) expenses for donor’s medical and psychological testing and insurance for post-procedure expenses, and (4) legal fees for preparing a contract with the egg donor. When applying the Tax Code to this taxpayer's situation and expenses incurred in obtaining an egg donor, the IRS concluded that these expenses were closely tied to the medical procedure of assisted reproduction and were fully deductible under Section 213. Even the compensation to the egg donor and the agency fee. The reasoning in the Letter was that these expenses are to facilitate the process of overcoming infertility and achieving pregnancy, directly impacting the taxpayer’s bodily functions and fulfilling the criteria in Section 213.  The ruling in this egg donation letter is a stark contrast to the  2021 Private Letter Ruling  on whether surrogacy expenses are deductible. Both rulings address the deductibility of medical expenses associated with assisted reproduction, specifically egg donation and IVF procedures. The 2021 ruling found that expenses incurred on behalf of a third party during gestational surrogacy were not considered deductible medical expenses. The taxpayers in the 2021 ruling were a gay male couple, and the IRS ruled none of their expenses for egg donation and gestational surrogacy could be considered incurred for treatment of a disease or for the purpose of affecting the function of the taxpayer’s body (outside what directly involved their bodies such as the sperm retrieval). In contrast, the 2003 ruling was for a woman, or perhaps a couple that included a woman with an infertility diagnosis. Because she had an infertility diagnosis and intended to implant the resulting embryo(s) into her own body, every expense she requested related to the egg donation was considered incurred for the treatment of a disease.   It might seem hard to reconcile the stark difference in outcome between these two rulings. In the 2003 egg donor ruling which allowed for the deduction of everything, there was a medical diagnosis of infertility. In the 2021 ruling which restricted deductible expenses to those directly affecting the taxpayer's body or the body of the taxpayer’s spouse, there was no medical diagnosis of infertility, but a gay male couple could not produce eggs or have a pregnancy on their own. Thus, the differences in the treatment of deductible expenses may lie in whether there is a medical finding of infertility or rather, a practical or social reason for infertility. If the facts were different and the 2003 taxpayer pursued surrogacy rather than implanting the fertilized egg into her own body, it is not clear whether the IRS would rule she could deduct surrogacy expenses. Another interesting scenario would be if the taxpayer were a gay couple or male with a medical diagnosis of infertility, whether the IRS would accept the same diagnosis to cover egg donor expenses.   It is worth noting that a Private Letter Ruling only applies to the taxpayer requesting it and does not bind the IRS to that reasoning or decision with any other taxpayer. Nonetheless, the broader ruling in 2003 may provide a legal and medical pathway to getting egg donation and possibly surrogacy expenses deducted from one’s taxes.   If you have questions about whether your third-party reproduction expenses are deductible, contact your tax advisor as we are not tax lawyers. When it comes to egg donation or surrogacy law, Tsong Law Group brings years of experience in this field. Message us  now to find out how we can assist you.  Read more about the deductibility of third party reproduction related expenses in our blog on egg donation expenses here. The difference in outcome may surprise you.

Dhar Mann Studios is a popular YouTube producer who makes short films which come with a positive moral lesson for his fans, who are mostly kids and adolescents. In his recent short film with the sensational title "Surrogate HOLDS BABY For RANSOM, What Happens Is Shocking," he enters the world of surrogacy. The idea of the surrogate holding the child she is gestating for emotional or monetary ransom is nothing new in the movie industry with examples like The Sinister Surrogate,  When the Bough Breaks, and so on. It is extremely rare in the real world though. The most famous case would be the Baby M case in Michigan  which was a traditional surrogacy  case and occurred after the child’s birth.   Synopsis  The film opens with Intended Parents Sandra and Jeremy with Gestational Carrier Emily at their kitchen table. Emily asks the Intended Parents for an advance on her last pregnancy compensation check of $5,000, which the Intended Mother Sandra is happy to give. Emily leaves the house and we are introduced to Emily’s boyfriend Seth, her abusive partner and father of their child with a gambling addiction. We learn that the couple have been facing financial struggles, and Seth pressured Emily to become a surrogate from the start. After drinking and gambling away her last check, he devises a plan to steal from Sandra and Jeremy during their baby shower while Emily rests inside. Despite Emily’s efforts to stop Seth’s plan, Seth manages to steal Sandra’s expensive jewelry pieces and forces Emily to cover for him.   Sandra even offers Emily a credit card to use since her due date is nearing. Seth uses all the money he received from selling Sandra’s jewelry to gamble and takes the credit card to book them a flight to Mexico. He plans on forcing Emily to hold the baby for ransom.  Sandra and Jeremy confront Emily and Seth when they are arrested and escorted off the plane. Although Seth denies any illegal doing, Sandra reveals they have video footage of Seth stealing the jewelry which shows Emily was resisting his plans.   Sandra encourages Emily to leave Seth and reclaim her independence. The film ends with Emily realizing that staying with an abusive partner does her own biological daughter more harm.   How realistic is this portrayal of surrogacy?   Coercion and Manipulation. Seth manipulates Emily to become a surrogate for financial gain although she did not want to. In a legal surrogacy arrangement, there will be a recital that all parties should enter into the agreement voluntarily, willingly and without duress. While there are anecdotes of partners attempting to coerce women into surrogacy, it is our experience that  surrogacy in the United States is voluntary  and is not a result of financial duress. Most agencies will not take surrogates who are on government assistance to avoid situations of financial duress and we recommend independent intended parents follow this guideline as well.  Surrogacy Compensation.  Surrogacy arrangements typically have an escrow account which is a third-party escrow company or attorney that is responsible for making payments to the surrogate. In fact, in California, a third-party escrow or trust account is required for any surrogacy contract with an agency involved. In this case, the surrogacy appears to be independent, and Sandra writes a check to Emily which is an advance on her last payment as she states money is tight.  In our contracts, the parties agree they shall not contact each other to discuss financial issues they are having and to talk to the agency or attorney if they are having issues. However, in an independent arrangement, direct payments to the surrogate from intended parents may take place if there is no escrow. It is ill-advised to advance any payment before its scheduled time.   Sandra also gives Emily a credit card near her due date which is unrealistic and something we have never seen in a surrogacy agreement. There are maternity clothing allowances or even dietary allowances which could cover expenses that the credit card was contemplated for, and it is advisable to follow the contract rather than provide an open-ended credit card to the surrogate.  Including the Surrogate’s Partner in the Contract. While spouses of surrogates are almost always included in the surrogacy contract, it is a best practice to include the surrogate’s live-in-partner in the surrogacy agreement. It is further a good idea to do a criminal background check of all the parties including the surrogate’s partner. In this case, the intended parents did not even recognize Seth when they saw him in the car late. Best practices were not followed to learn that the surrogate has a partner late in her pregnancy.   Travel and Other Restrictions.  Surrogacy agreements typically prohibit travel after a certain gestational week, as travel out of state could result in an emergency birth and the surrogate’s health insurance or parentage order not being accepted in the state she gives birth in. International travel is prohibited for multiple reasons including health and legal reasons. Travel by air usually requires doctors’ permission from a legal standpoint. It’s unlikely a surrogate who is later than 32 weeks pregnant could get on a flight so easily without doctor’s permission.  Lastly, as an aside, Emily looks like she had a spray tan or has been to a tanning salon, and this might also be a violation of the surrogacy agreement.  Such restrictions are to ensure the health of the baby and prevent premature births or miscarriages.  Parentage Considerations.  It appears Emily is in her last trimester in this film as her compensation check is supposed to be her last one. In pre-birth order states,  with the proper attorney, legal parentage should have already been established in favor of the intended parents. In such states, the intended parents would be the parents and the surrogate’s cooperation might not be necessary. Traveling internationally would be the sticker though as Mexico might recognize the child as the surrogate’s.    Conclusion:   Dhar Mann’s films appeal to older children as his characters get into dangerous or difficult situations and either end up getting caught or making the right choice.  This film diverges from his normal subjects as it just jumps into the subject of surrogacy without explanation, so some children might be confused what exactly the arrangement is. Although the ending is positive, it might not be a good early example of surrogacy to show to your kids as it might make them fearful of surrogacy and feeling it lacks legal security, even though the surrogate in the end was never “holding the baby for ransom.” For kids who feel comfortable with surrogacy, this could be fine to show as entertainment and to understand other people’s situations.  Although this short film is short on realism, it is a step towards normalizing surrogacy, as it makes the moral dilemma no different to many other moral dilemmas Dhar Mann’s characters face in his other shorts. This short film has over 12 million views with positive feedback from its audience. For a short watch, it might be worth a view as long as you keep in mind it is not an accurate portrayal of the vast majority of surrogacy journeys.   If you are looking for a more legally secure journey than the one depicted in the Dhar Mann short, contact us now. Tsong Law Group's award-winning surrogacy lawyers, licensed across multiple states including California, New York, Illinois, Washington, Oklahoma, and Arizona, are dedicated to representing intended parents, surrogates, and donors.

Effective January 1, 2019, Washington state became one of the first states to pass legislation granting donor conceived children potential gain access to information about their donors. Washington’s Open Identity Donation Law  recognizes the independence and privacy of donors, while balancing donor-conceived children’s right to access information about their genetic background and desire for identifying information.   Like California’s law on donor disclosure , the law provides the donor to declare their preference for anonymity at the time of the donation. A licensed gamete bank or fertility clinic must provide the donor with information about the choice on identity disclosure and obtain his or her declaration which shall be either witnessed or notarized. This declaration indicates either the donor's agreement to disclose their identity upon the child's request once reaching 18 years of age or the decision not to disclose their identity to the child. It must be noted that the donor who signed a declaration to disclose their identity may withdraw the declaration at any time. Should the donor not revoke their decision to be anonymous, the donor-conceived child may still obtain non-identifying medical details.   The Washington law grants donor-conceived children the right to request their donors' identifying information and medical history upon reaching the age of 18 from the donor’s fertility clinic or gamete bank. "Identifying information" includes a donor's full name, date of birth, and addresses (both permanent and current). "Medical history" includes information about the donor’s present and past illnesses, as well as social, genetic, and family history relevant to the donor's health which was disclosed to the clinic at the time of the donation.   A licensed gamete bank or fertility clinic is required to collect the donor's identifying information and medical history at the time of donation. Should a clinic or gamete bank fail to maintain the donor's choice of whether to disclose or remain anonymous, the clinic must disclose the information that it has collected to the donor-conceived child. If the clinic or bank receives gametes from another facility, they are required to gather and maintain information such as name, address, telephone number, and email address.   Conclusion Parties to gamete donation should consider the emotional and developmental implications of anonymity on donor conceived children. The Washington law does not necessarily change the outcome of parties who request anonymous donations. It does however, give the donor an option to change their mind regarding their decision to be anonymous to donor conceived offspring.   Your lawyer should explain the choices regarding open and closed gamete donation as well as any disclosure laws that a state may have. As lawyers licensed in Washington, we can offer you guidance with the complexities of gamete donation contracts.   For more information, contact us now .

In last week’s blog, we reviewed California's employment laws effective 2024 that affected families including surrogates and those using assisted reproduction. This week’s article addresses employment law changes in Illinois that indirectly affects surrogacy.  Governor JB Pritzker of Illinois signed Senate Bill 208 Paid Leave for All Workers Act making  one of fourteen US states that require paid time off , guaranteeing 40 hours of paid sick leave for workers. Effective January 1, 2024, the law will provide employees will earn one hour of leave for every 40 hours worked. This new bill grants employees who have children to be able to take time for medical appointments, childcare, and other important family matters.  Prior law did not provide paid leave to care for sick family members. Many working families are unable to take unpaid days off because of the financial burden it might cause.   Governor Pritzker reasons that this will help employees become more productive as they have more time to deal with stressors outside of work, family issues, and alleviate any burdens of working families. During leave, employees will receive their full wages, and tipped workers will be compensated at the minimum wage applicable in their respective locale.   This legislation also marks a significant advancement for surrogacy and individuals utilizing assisted reproduction, as it grants family members, including spouses and partners, the opportunity to take paid leave for the comprehensive care and support of the surrogate. This encompasses accompanying the surrogate to medical appointments, offering emotional support, and assisting in prenatal check-ups, all without the financial sacrifice of income.  The senate bill is inclusive of all employees within the jurisdiction of Illinois, including state and local government as well as government agencies. House Speaker Emanuel Welch states that the ability to have time off to care for a sick child or tend to one’s mental health should not be a luxury, but a basic right. This new law will recognize the added stress on working mothers and hopefully move to more healthy and compassionate workplaces. Notably, State Representative Camille Y. Lilly believes that paid leave is a necessary step to creating a state that is compassionate to the needs of working families.  Conclusion   Senate Bill 208 ensures that workers can take time off when needed without sacrificing income, fostering a healthier work-life balance. While the amount of paid leave is small compared to paid disability leave in states such as California, New York  and Washington , it is paid for by the employer rather than the state.   This new bill provides a modicum of support to employees including those involved in surrogacy or utilizing assisted reproduction, enabling them to take time off for essential family matters such as medical appointments and childcare.   If you require assistance with surrogacy legal matters, feel free to contact us  for expert guidance and support.