Are there penalties in letting an annuity mature after the death of owner?

My father had a $100,000 annuity for the term of 5 years. He died the year it was invested. My name is listed as POD but it was with the understanding that it would be divided among his other three children and myself. How should this be handled? Can it be untouched to mature before withdrawn? The dividends are being transferred to a bank account that he had mine and my sisters name added.

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