Using Illiquid Complex Assets to “Give While You Live”

The ongoing shift in generational wealth is leading some wealthy charitably inclined individuals to explore how they can use their illiquid complex assets to support the causes they care about most while they are alive.   Nearly half of US corporations are classified as S-corporations representing over $3 trillion* in assets.  Couple this with another 1.7 million C corporations as well as limited partnerships and LLC and pretty soon you are talking about a substantial amount of illiquid wealth tied up in private shares.  This is not to mention other types of complex assets like raw land, life insurance policies and even commodities.

These are assets that considered to be “dead assets” meaning they are not required for sustaining themselves in retirement and will otherwise wind up in probate after their passing.

In addition to the joy of seeing the impact of their gift on the charitable causes they care about most, gifting during life has other more pragmatic advantages these individuals find attractive.

1)    Income Tax Deduction The donor receives an immediate tax deduction in the year they make their contribution. The IRS does mandate annual limitations, depending upon the donor’s adjusted gross income (AGI):

·         Deduction for cash – up to 50 % of AGI.

·         Deduction for securities and other appreciated assets – up to 30 % of AGI.

·         There is a five-year carry-forward for unused deductions.

2)    Potential reduction in capital gains taxes

3)    Estate Planning to potentially reduce or eliminate estate taxes

4)    Potential reduction in AMT If the donor’s income is subject to alternative minimum tax (AMT), the contribution to their donor advised fund will reduce their AMT impact.

The problem is that most charitable organizations do not possess the means or ability to deal with these types of assets.  Our Wealth Management team working with your legal and tax advisors can help you structure a solution to help you “Give While You Live.”

*Source Internal Revenue Service

The foregoing is for informational purposes only and is not intended to be a solicitation to buy or sell any instrument mentioned herein or to pursue any specific strategy.  It should not be considered personalized legal or tax advice as neither Paragon Bank nor LPL may deliver such advice..  Individuals should consult their qualified legal or tax advisors before pursuing any specific course of action.

Paragon Wealth Solutions LPL Registered Sales Assistant: Audrey Liles

Paragon Bank has appointed Audrey Liles as an LPL Registered Sales Assistant of its Wealth Solutions team. Liles reports to Staci Jackson, Charles Hardee and Brooks Monypeny, Managing Partners and Wealth Advisors of the Paragon Wealth Solutions team.

“Audrey’s industry background and business acumen make her an excellent addition to the Wealth team,” said Robert Shaw, Chief Executive Officer at Paragon Bank. “She is dedicated to her work and provides excellent customer service, both of which enhance the client and her team’s experience.”

As an LPL Registered Sales Assistant, Liles provides client services and advisor support by fielding phone calls, placing unsolicited trades, solving operational issues, handling account maintenance and scheduling meetings. Additionally, she manages operational needs such as processing paperwork, tracking and paying invoices and submitting compliance requirements.

Since earning her Bachelor of Arts in marketing from the University of Tennessee, Liles has consulted branch personnel such as advisors, sales assistance and operations managers on the benefits of leveraging technology to enhance business functions. She also processed paperwork to open and maintain fee based accounts for the Morgan Keegan Wealth Management platform.

Audrey can be reached at 901.322.0854 or by visiting Paragon Wealth Solutions at 4515 Poplar Avenue, Suite 108.

Securities offered through LPL Financial, member FINRA/SIPC. Investment advice offered through Independent Financial Partners, a registered investment advisor. Independent Financial Partners and Paragon Wealth Solutions are separate entities from LPL Financial. Insurance products offered through LPL Financial or its licensed affiliates. Paragon Bank and Paragon Wealth Solutions are not registered broker/dealers and are not affiliated with LPL Financial.

 

 

Paragon Wealth Solutions Managing Partner: Charles Hardee

Paragon Bank announced Charles Hardee as Managing Partner and Wealth Advisor of its Wealth Solutions team in November 2014. Hardee reports to Dan Overbey, President and Managing Director of Paragon Wealth Solutions, and Mike Edwards, President and Chief Operation Officer at Paragon Bank.

“Charles has invaluable experience in the local financial market and has been a tremendous addition to our growing team, ” said Edwards. “He shows an abiding dedication to his customers, consistently providing an elevated level of service, which is something we take great pride in at Paragon.”

As a Managing Partner and Wealth Advisor, Hardee is responsible for managing client assets and aligning their investments to help work towards personal financial goals. A few services offered by Hardee and his team include investment and retirement planning, risk management, and tax and small business planning strategies. Hardee is located at Paragon’s Grove Park Banking Center (4515 Poplar Avenue, Suite 108) and can be reached at 901.322.0851.

Since earning his bachelor’s degree with a concentration in marketing from the University of Memphis, Hardee amassed more than 20 years of experience as a Wealth Advisor for Morgan Keegan and Raymond James. Additionally he is heavily involved in the community as a member of Holy Communion Episcopal Church, supporter of Ducks Unlimited, and member of the sponsorship committee for Southern Hotwing Festival.

Securities offered through LPL Financial, member FINRA/SIPC. Investment advice offered through Independent Financial Partners, a registered investment advisor. Independent Financial Partners and Paragon Wealth Solutions are separate entities from LPL Financial. Insurance products offered through LPL Financial or its licensed affiliates. Paragon Bank and Paragon Wealth Solutions are not registered broker/dealers and are not affiliated with LPL Financial.

 

Paragon Wealth Solutions Managing Partner: Staci Jackson

Paragon Bank named Staci Jackson Managing Partner and Wealth Advisor of the Wealth Solutions team in January of 2014. Jackson reports to Dan Overbey, President and Managing Director of Paragon Wealth Solutions, and Mike Edwards, President and Chief Operating Officer at Paragon Bank.

“Staci has been instrumental in the growth of our company, providing strong direction for the Wealth Solutions team,” said Robert Shaw, Chief Executive Officer at Paragon Bank. “Her commitment to deliver customized investment services by connecting with clients on a personal level greatly benefits her customers, the Wealth Solutions team and the bank overall.”

As a Managing Partner and Wealth Advisor, Jackson is responsible for creating a personalized financial strategy with a client’s lifestyle goals in mind. She does this by working with a client to build an appropriate plan that supports the client’s objectives, then monitoring it regularly to help ensure the plan stays on track. Specific services include investment planning, retirement planning, tax planning strategies, estate planning, insurance, risk management, education planning, gifting strategies and small business strategies. Jackson is located at Paragon’s Grove Park Banking Center at 4515 Poplar Avenue, Suite 108. She can be contacted at 901.322.0853.

Jackson received a Bachelor of Science from Lambuth University in 1996 and has since accumulated more than 15 years of investment management and financial services experience. Prior to joining Paragon Bank, Jackson worked as a Financial Advisor for Raymond James and was the Associate Vice President at Morgan Keegan. In addition, she maintains the following financial credentials: Investment Company and Variable Contracts Products Principal (Series 26), General Securities Representative (Series 7), and Uniform Securities Agent State Law (Series 63) securities registrations, held through LPL Financial, and the Tennessee Department of Financial Services Licenses Life and Variable Annuities.

An active member of the Memphis community, Jackson serves on the Board of Directors for Best Buddies, is the Committee Chair for Cub Scouts Pack 367 and has served as a member of Hope Church for 14 years. She enjoys playing golf, traveling with her family, supporting her children’s competitive baseball teams and Alabama football.

Securities offered through LPL Financial, member FINRA/SIPC. Investment advice offered through Independent Financial Partners, a registered investment advisor. Independent Financial Partners and Paragon Wealth Solutions are separate entities from LPL Financial. Insurance products offered through LPL Financial or its licensed affiliates. Paragon Bank and Paragon Wealth Solutions are not registered broker/dealers and are not affiliated with LPL Financial.

Paragon Bank Announces Wealth Solutions Division

Paragon Bank has announced the formation of the Paragon Wealth Solutions division. The new division was created to assist customers with retirement and investment planning, as well as small business strategies. The group is comprised of six professionals with over 120 years of financial services and asset management experience.

“We pride ourselves on strategic growth while maintaining a focus on serving the needs of our customers,” said Robert Shaw, Chief Executive Officer at Paragon Bank. “With individuals and small business owners in mind, we look forward to enabling more people reach their investment and retirement goals.”

The Paragon Wealth Solutions team will be made up of four wealth advisors: Staci Jackson, Mark Winburne, Kent “Brooks” Monypeny and Charles Hardee.

·       Jackson, who joined the Paragon team in March 2014, has more than 15 years of investment management and financial services experience and recently opened the Memphis branch location of Atlantic Capital Advisors.

·       Winburne, who was appointed in July of this year, has worked as a financial advisor since 1993 and holds Series 7, 24, 63 and 65 financial licenses.

·       Monypeny has over three decades of experience and holds numerous securities licenses including Series 6, 7 and 52, among others.

·       Hardee has been in the securities industry for 20 years and holds a Series 7 license, as well as a state securities and insurance license.

Monypeny and Hardee joined the division on November 3, 2014. The team will be led by Dan Overbey, President and Managing Director, and sales support will be steered by Audrey Liles.

The group will focus on a wide range of strategic plans, including business investments, companywide retirement and individual retirement planning. Paragon Wealth Solutions has affiliated with LPL Financial to provide equities, mutual funds and bonds annuities for businesses and individuals.

This new division of Paragon Bank, combined with the bank’s Mortgage, Cash Management, Insurance, BusinessManager and Payroll Solutions, should provide for a significant increase in non-interest revenues for the company. By offering this suite of products, Paragon Bank is expanding beyond the traditional banking infrastructure to provide solutions to help make its customers’ lives simpler.

About LPL Financial

LPL Financial is one of the leading financial services companies and the largest independent broker/dealer in the nation, as reported by Financial Planning magazine, June 1996-2013, based on total revenue. LPL Financial is an enabling partner to more than 13,300 financial advisors and approximately 700 financial institutions.