Captives as Asset Protection and Transfer Vehicles

Captive Uses Trends & Innovations | Gary Bowers | Partner | Johnson Lambert LLP

Gary Bowers of Johnson Lambert states that there is a shift in the captive insurance community from monitoring, maintaining, and handling the liability side of the balance sheet to protecting, transferring, and managing assets. Micro-captives, or 831(b) captive insurance companies, in particular, are frequently a vehicle for long-term premium tax deferral and, unfortunately, are sometimes used to "insure" against illegitimate risks (no real chance for loss) or to improperly shift money around.