Inherited IRA question?

Hi, I am a concerned daughter that is needing some advice from anyone that can be of some help. long story, trying to sum up. My mother inherited an IRA that was invested in stocks after my father ped. While this was great while my parents had my father's income, now with the decline of the stock market, it's at a time for us where we need to act fast. With half of her investments gone, we finally seeked advice from a local broker. My question is, can anyone offer me advice on if it would be a good idea to move from the stocks (it's a genworth investment product) into instead a variable annuity for income purposes. (she earns income from the investment product). Or would it be best to diversify into a series of different things- such as leave some where it is, take some and put into a variable annuity, and put some into a bank ira. If she ever does anything to take the cash out, she'll be HIGHLY pentalized. What would you recommend doing? Are variable annuities a great thing to be involved with? I've read so much, just cannot paint a clear picture to know if it would be a better option for my mother. Also, can you roll over from an investment product to something like a traditional ira with it being considered a "non taxable event". FOr fyi, she is 53, (54 in may), has no other income except for what she has a liquidity, her house (owes nothing on it), and does not work. Please help!!! I can answer any questions to help get an answer.