What is a key strategy for integrating annuities into estate planning?

Utilizing death benefits to avoid probate is a key strategy for integrating annuities into estate planning because annuities typically allow for designated beneficiaries to receive the death benefit directly. This feature helps to streamline the transfer of assets upon the owner's death, ensuring that the funds are passed on to the intended beneficiaries without having to go through the often lengthy and public probate process.

By naming beneficiaries, individuals can maintain greater control over how their assets are distributed after their death, which is a crucial aspect of effective estate planning. It ensures that the designated beneficiaries receive the funds quickly and privately, which can be particularly beneficial in terms of financial security and emotional well-being for those left behind.

Other options do not align with effective estate planning practices. Failing to consider beneficiary designations can lead to unintended consequences, such as assets being distributed according to state law rather than personal wishes. Maximizing tax implications without a plan would likely create more financial burdens instead of alleviating them, while investing in only one type of annuity could limit flexibility and diversification in a financial strategy.