If there is no facility to do so already out there in Sugar, we would like the ability to archive or inactivate Accounts and Contacts. Prior to executing the archive we would want to move all Activities/Histories to a current Contact.

An example case would be when a company closes we would archive the Account
In the case of a Contact we would remove the relationship to the Account. Possibly create a mechanism to move the contact into prospects?
What do we do when a contact leaves the industry or passes away?