I would probably take annual payments if I knew that my heirs would inherit a lump sum. Maybe they should have a "death benefit." Also, they'd have to pay estate tax which should be permanently repealed because it's unconstitutional. (I thought I already wrote this, but since I don't see my comment, maybe I messed up!)

What happens if a Jackpot winner dies before receiving all of his/her payments?

By law, the remaining installment payments become part of the winner's estate in the event his/her death precludes collecting full payment. The winner's estate has the option, in most cases, of continuing to receive annual payments or requesting that the Lottery Director allow a one-time payment of the current cash value of the remaining winnings.

from the washington state lottery website

Yes, I know. But there have been many lawsuits where people battle the IRS because they want estate tax paid on the entire amount. If you take the current cash value and pay income tax, you then need to pay estate tax (the estate pays the tax before distribution) if the total estate is more than $2 million. It will change to $3.5 million and then be repealed for one year and go back in 2011 to $1 million unless Congress votes to eliminate it altogether. I guess I'll worry about it when I win millions, but I was only saying that the beneficiaries still need to pay the IRS estate tax within 9 months of the entire amount inherited even if they choose to continue the annual payments.