Annuity & Pension Death Benefit Tax?

Pensions are taxable to the person receiving the pension. Is the check being issued to your grandmother only? Is her social security number on record with the issuer of the pension? If the payments are being made to her, and she is the one who will be receiving a 1099 at year end for tax reporting purposes, this could be taxable income to her. If she chooses to give the money to you, you are receiving a gift and are under no obligation to report this as income as your grandmother will be paying the ensuing tax on these payments.