My wife and I have "dreamed" about what we'd do with it and amazingly our thoughts are very much the same.
1. We would take it in the 30 payments.
2. Set some of it up as separate $1 million accounts, designating each one for a specific family purpose. Each one would distribute 90%, after taxes, of whatever that account generated in interest or dividends or whatever. The remaining 10% would plow back into the account, raising the principal and thus increasing the amount the beneficiary would get each year.
The first few accounts would be ours. Use one to pay off the house, start paying the monthly installment bills like insurance a year at a time, etc. Money not used would just be reinvested.
Next would come an account for each one of our children and grandchildren.
For extended family (brothers, sisters, nieces, nephews, etc.) we would set up one or two of the accounts to and spread the proceeds as we see fit. Maybe make a mortgage payment or two for one, help with a car for another, help one with college tuition, etc.
Then the charities start, beginning with specific ones we've wanted to donate more to but haven't been able to over the years. A couple of college scholarships, City of Hope, Saint Jude's and the San Diego Safari Park would be first out of the gate.
With multiple accounts and limiting distribution to 90% of the proceeds it would be fun to be able to help out individuals or organizations be they individual people legitimately down on their luck or other charities like homeless shelters and military veteran's organizations.
The important thing to us is to structure it in such a way as to never place the principal at risk, not change our lifestyle drastically and help others. Our own needs and wants are pretty modest.