How do death benefits interact with the estate for pension plans?

How do death benefits interact with the estate for pension plans?

• A. Death benefits are paid only if the plan is terminated.
• B. Death benefits are tax-free regardless of nomination.
• C. If not nominated to a beneficiary, death benefits may pass to the estate and be subject to probate and taxes.
• D. Death benefits are paid directly to dependents and never to the estate.

Answer: (C)