At John's death, his estate was worth $$10$ million, which included a $$500,000$ deferred fixed annuity that had not yet been annuitized. Which statement about the disposition of the annuity proceeds

is CORRECT?

A$)$ The annuity funds can avoid estate tax if they are payable to a named beneficiary.

B$)$ The annuity funds will not be included in John's estate for tax purposes.

C$)$ The annuity funds will be subject to probate because of the size of John's estate.

D$)$ The annuity funds will avoid probate if they are payable to a named beneficiary.