Helga owns all of the issued and outstanding shares of Flower Haus Inc., a highly successful nursery that she started 25 years ago. The business is currently worth $700,000. Helga is ready to retire, but the vast majority of her wealth is tied up in the business. A nephew who has worked at the Flower Haus for the last two years would like to buy the business, but he has only enough money for a down payment. Helga feels her nephew knows the business well. She wants to be assured of a fixed retirement income that she could never outlive. If possible, she would like to remove the business as an asset of her gross estate. Helga has no surviving spouse or children. Which one of the following is the most appropriate form of business transfer for Helga to use to achieve her objectives?

A)

A preferred stock recapitalization of the business followed by an outright sale of the business to her nephew

B)

A sale of the business to her nephew pursuant to a private annuity agreement

C)

Gifting the business to her nephew

D)

An installment sale of the business to her nephew