Annuity Inheritance Tax Annuity Inheritance ?

Annuity Inheritance ? - annuity inheritance tax

My sister and I inherited an annuity from our father. Form 712, that the value of the contract, that the death of death (1) date of death value of the contract 450000, (2) investment contract or at 200, 000 obtained.

After consulting with the company, I am not yet sure what that means. If I understand correctly, we will divide the estate equally and 250,000 are subject to income tax, but not the 200,000. Is that correct?

In addition, we have three options for receiving funds. The lump sum or monthly payments for life. The representative said that take up to 99% of the people, the lump sum.

None of us has an enormous need that money now and do not develop. Flat below us, a high tax, is not it? We both have enough money from the IRA on our own through our work, which eventually pensions, so we see no need for a new pension. The monthly payment is our best option? Does it make sense to take it and invest in the most vulnerable?