James and Donna Smith own an insurance brokerage business that they incorporated fifteen years ago with an initial investment of $500.00. Their common stock is now worth $1,000,000, and they are considering selling the business. James and Donna have contacted you to discuss their options. They would like to sell the business and diversify their investment into various stocks, bonds, and mutual funds. However, they are nervous about the large capital gains tax they would have to pay. In order to avoid paying capital gains tax on the sale of their stock, which of the following transactions would you recommend?

a. Gift the stock to a Third Party Discretionary Trust and receive income for life.

b. Gift the stock to a Charitable Lead Trust and reserve a life payout for themselves.

c. Gift the stock to a Charitable Remainder Trust and reserve a life payout for themselves.

d. Gift the stock to an Irrevocable Life Insurance Trust and use the proceeds from sake to purchase life insurance on their lives.