Client had a SPIA and has passed leaving two children bene’s 50/50 to receive the remaining two years payments at which time there will be a balloon payment of 200K or 100K each.

Do they have the option of transferring these payments, mainly the balloon, to an inherited IRA and avoiding having to take the taxable income in two years?

I am not sure if the current SPIA will be retitled to an inherited policy or not.

Thanks in advance.