Kate and Mark, a married couple, own a limited liability company. Although Kate and Mark are not yet ready to retire, they would like to begin involving their three children in the business since they are now all responsible adults. Their primary concern is ensuring that the business will remain in their family for future generations. It is also important to Kate and Mark that their children learn the value of a dollar, so they would like them to purchase their interests in the company. Kate and Mark have been successful in their business and have a modest estate, but they do not predict they will owe any estate tax. 

Which one of the following is the most appropriate form of business transfer technique for Kate and Mark to use to achieve their objectives?

A) An entity buy-sell agreement between Kate and Mark 

B) A gift of the business interests from Kate and Mark to each child 

C) A preferred stock recapitalization of the business 

D) A cross-purchase buy-sell agreement between Kate, Mark, and the children