I'm pretty sure you don't have to pay taxes on it every year, because you only claim it as income one year.

I'd...
1. Pay off student loans.
2. Take my wife on a honeymoon.
3. Start a scholarship at my alma mater
4. House, probably around the 1 mil mark complete with a gnarly garage
5. Maid
6. hit up some nice car auctions
7. hit up the financial adviser
8. probably start a few fast food places (sorry i stole the idea, but it's really a good idea)
9. volunteer