Offshore Captive Insurance Company

VolAgent · 07-15-2009, 06:31 AM

Is anyone familiar with these, has anyone set one up? I just ran into a situation where I might be working on such a situation. Obviously the experts will be brought in, but I was curious to see if anyone has experience with this.

somarco · 07-15-2009, 09:04 AM

You must have very deep pockets . . .

VolAgent · 07-15-2009, 09:29 AM

He has a very, very nice cash flow.

Markingriffin · 07-15-2009, 10:17 AM

Originally Posted by VolAgent

Is anyone familiar with these, has anyone set one up? I just ran into a situation where I might be working on such a situation. Obviously the experts will be brought in, but I was curious to see if anyone has experience with this.

I'm clueless about what you are asking.

Setup a offshore captive ins company?? I've never heard of anyone setting up one. Do you plan on doing this?

VolAgent · 07-15-2009, 10:26 AM

Well, I won't be doing it. I have the relationship with the client, at this point I'm just along for the ride.

What limited understanding I have suggests it is pretty exotic and takes advantage of several tax loopholes. It is definitely not for the run of the mill company. You set up a subsidiary insurance company and run stuff through there.

Originally Posted by Markingriffin

I'm clueless about what you are asking.

Setup a offshore captive ins company?? I've never heard of anyone setting up one. Do you plan on doing this?

indaville · 07-15-2009, 10:33 AM

I have never done one but a buddy of mine does them. Very lucrative work, but they are a long process to get done. Some of his cases have taken years to complete.

VolAgent · 07-15-2009, 11:56 AM

That is what I'm afraid of, although the client is very eager and his CPA is already on board. The CPA is the one that mentioned it to him, I just happened to call on him for some personal business and he brought it up.

Originally Posted by indaville

I have never done one but a buddy of mine does them. Very lucrative work, but they are a long process to get done. Some of his cases have taken years to complete.

somarco · 07-15-2009, 01:52 PM

I assume this CPA is well aware of the move to track down assets held in offshore accounts and tax them. Any funds from the captive that are repatriated are subject to tax.

UPS had (perhaps still has) an offshore captive for reinsuring their packages. There was a court battle over this a few years ago. Don't recall the details and too lazy to research.

VolAgent · 07-15-2009, 07:44 PM

Actually, that was a concern of the client. One of the players involved had a client audited by the IRS, and the client won.

Originally Posted by somarco

I assume this CPA is well aware of the move to track down assets held in offshore accounts and tax them. Any funds from the captive that are repatriated are subject to tax.

UPS had (perhaps still has) an offshore captive for reinsuring their packages. There was a court battle over this a few years ago. Don't recall the details and too lazy to research.

Markingriffin · 07-15-2009, 07:52 PM

IT all sounds like a big Red Flag to me and something to avoid.

dgoldenz · 07-15-2009, 10:25 PM

Adkisson's Captive Insurance Companies the Ultimate Captive Insurance Resource

This website might help with some info.

VolAgent · 07-16-2009, 06:43 AM

Yes, very helpful. Thanks for the info.

Originally Posted by dgoldenz

Adkisson's Captive Insurance Companies the Ultimate Captive Insurance Resource

This website might help with some info.