Pretty sure the annuity is payable to your heirs. As Dirkadirkastan pointed out, the lottery is paying the same amount either way--they're either paying a lump sum or buying bonds with varying maturity dates. Otherwise the annual payment option would ALWAYS be stupid.
And no, I wouldn't complain about $6MM a year for 26 years either. I don't expect the average lottery ticket purchaser to grasp the finer points of discounting cashflows. Of course, I bought a ticket for this one. Lump sum option, natch.
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