What is a primary benefit of using death benefits in annuity estate planning?

The primary benefit of using death benefits in annuity estate planning is that it can help to avoid probate. When an annuity has a named beneficiary, the death benefit is payable directly to that beneficiary upon the annuitant's death, bypassing the probate process. This direct transfer can expedite the distribution of funds to heirs and minimize potential delays and costs associated with probate proceedings, providing a streamlined way to ensure that beneficiaries receive their inheritance in a timely manner.

While the other options present various aspects related to annuities and estate planning, they do not emphasize the flexibility and efficiency that avoiding probate offers. For example, tying up assets during a surrender period does not align with estate planning goals, and implying maximum tax liabilities undermines one of the key advantages of strategic financial planning. Lastly, allowing heirs to manage the annuity may not be an inherent feature of death benefits, as the benefits are typically paid out rather than managed. Therefore, the ability to avoid probate is a significant reason why many individuals include annuities in their estate planning strategies.