Southport Compass spe­cial­izes in
pro­vid­ing planning for Estate Preservation, Asset Protection, Business Succession, Retirement Income, and Executive Benefits focused on servicing business owners, families, and high income earning professionals.

Wealth Protection Planning

Leveraging planning expertise to achieve results

Individual

  • Wealth Transfer
  • Legacy Planning
  • Tax Planning Strategies

Business

  • Succession Planning
  • Key Person
  • Executive Benefits

Charitable

  • For Charities: Board Member and Large Donor Planning
  • For Individuals: Enhanced Charitable Gifting

INDIVIDUAL

Wealth Transfer: For many clients, the primary purpose of life insurance is to provide financial protection to surviving spouses, children and significant others. However, when life insurance is integrated with a well-thought-out estate plan, the benefits can multiply. One common use of life insurance is for estate tax liquidity. Large estates can be subject to significant estate taxes at the death of a wealthy individual. After reviewing and employing other estate planning techniques, many wealthy individuals determine that life insurance, held outside the client’s estate, is a viable option to provide liquidity or financial flexibility to minimize the impact of the estate tax liability.

Roth IRA Alternative (Income Tax Protection): Often clients have looked into contributing to a Roth IRA. After all, a Roth IRA can be a valuable part of their overall retirement income strategy, offering:

  • Tax-free accumulation
  • Tax-free distributions
  • No Required Minimum Distributions (RMDs)

The problem is that many individuals either have maxed out contributions for the year or simply do not qualify due to income limitations.

For clients with a need for life insurance protection and the desire to save additional money for retirement, but don’t qualify for a Roth IRA, a cash value life insurance policy may be the right plan. Cash value life insurance has many of the same benefits as a Roth IRA, no caps on annual contributions, and there is an immediate income tax free death benefit.

BUSINESS

Key Person Protection: Business owners benefit from the strategic use of life insurance. Upon the death of a business owner, life Insurance proceeds may provide an infusion of liquidity into the company to help keep operations running smoothly while the management team seeks a replacement.

Buy-Sell Protection: In the case of a business with multiple owners, a properly structured and funded buy-sell agreement permits a smooth transfer of the business when one or more owners retire, become disabled or die. Life insurance is often the most cost-effective way to fund the buy-sell agreement which in turn protects and extends the life of the business.

Executive Benefits: For employers wanting to recruit, reward and retain employees, they should evaluate how a tax efficient benefit plan that protects employees and provides income tax-free retirement income can be structured.

CHARITABLE

Sustaining the good works of nonprofit organizations, including certain universities, is a noble effort in society and clients may have affinities for many causes that they want to help support through their legacy. Funding that legacy can be a challenge when balanced with family needs.

Planning within the nonprofit world often incorporates life insurance as a means to provide for ongoing support of the charitable goals of an individual or an organization.

Charitable organizations may seek to protect the annual gifts received from either large donors or boards with the use of life insurance. This type of need is akin to what a key person would be in a business setting. Alternatively, individuals undergoing personal planning may decide to allocate all or a portion of a life insurance death benefit to a nonprofit and meet the charitable goals.