File Your Representative Payee Report. The SSA requires that a representative payee file an annual accounting called the Representative Payee Report. This report details what you, as the representative payee, have done with the beneficiary's funds during the previous year.
You can roll over an inherited qualified annuity. This type of annuity resides in an individual retirement account or employer plan. A nonspouse beneficiary has limited options regarding how to roll over the annuity and when taxes are due.
Anecdotal evidence suggests that almost all of these accumulated annuity values are passed onto the heirs in a big lump sum and not turned into an income stream by the buyers of the annuities. The consensus is that less than 2% of deferred annuities are annuitized.