Take the lump sum distribution, pay the taxes and put the money into a trust.
You never know what will happen to the entity running the lottery.
Today the Commonwealth of Puerto Rico (part of the USA) filed the equivalency of bankruptcy.
Many US citizens who live in states such as NY that have state income taxes bought Puerto Rico tax free bonds (commonly called municipal bonds, even when not issued by a municipality).
US Law exempted this interest from state income tax.
No one know when and if these bonds will be paid off, or if the interest will accrue to be paid later.
The Lottery authority can go bust, the insurance company that issued the annuity to fund the payout can go broke.
A typical lump sum distribution is about 50%…I’m sure you could live nicely for the rest of your life on 25 million less taxes. I have trust clients earning 7% year in year out since 1984 in portfolios I manage.
So, Put 10 million in the trust after taxes, spending and charity and you could live quite nicely on 700K income per year