Which statement about the tax consequences of business succession planning is true?

Which statement about the tax consequences of business succession planning is true?

• A. Tax consequences are negligible and do not affect wealth transfer.
• B. Only cash gifts reduce taxes; assets have no effect.
• C. Gifting strategies do not affect estate taxes.
• D. Structures like trusts and corporate ownership can minimize taxes and preserve value during transfer.

Answer: (D)