Locked-in retirement accounts and life income funds
When a person who held a locked-in retirement account (LIRA) or a life income fund (LIF) dies, the LIRA or
LIF balance is no longer locked in.
It is paid in priority to the
recognized spouse. However, if that person has renounced it or if there is no spouse, it will be paid to the successors (e.g.: heirs).
If the deceased's
LIRA or
LIF contains amounts from a former separation, the amounts will only be paid to the new spouse if so provided in the
LIRA or LIF contract or if he or she is the successor.
Applying for the death benefit
To receive payment of the death benefit, an application must be filed with the financial institution that administers the LIRA or LIF.
Cashed amounts are taxable. However, taxable amounts can be deferred by transferring them directly to a registered retirement savings plan (RRSP) or to a registered retirement income fund (RRIF). For more information, see the
Canada Revenue Agency's 
website or call 1 800 959‑7383.
Renunciation and revocation
The spouse can renounce his or her right to receive the
LIRA or
LIF balance when the holder dies at any time, except if he or she has already received it.
He or she can therefore renounce it after the holder's death, but before the amount has been allocated. He or she only needs to provide written notice on the subject to the financial institution.
The spouse may
revokehis or her renunciation by written notice to the financial institution, but only
before the holder's death.
Will
Despite the provisions in the deceased's will, the LIRA or LIF balance must be allocated based on the rules explained above.
Those rules take precedence over the will.
A helpful example...
Yves remarried Lise. In his will, he provided that the amounts accrued in his
LIRA will be paid to his children from his first marriage.
If Lise did not renounce her right to receive the
LIRA balance when Yves dies, the financial institution must allocate the balance with interest to Lise, in accordance with the rules explained above, despite the provisions in Yves' will.
However, Lise can renounce her right to receive the
LIRA balance before the amount is allocated to her by written letter to the financial institution. The financial institution must then allocate the
LIRA balance with interest to Yves' children, in accordance with the rules explained above, despite the provisions in Yves' will.
For more information
Retraite Québec does not have access to personal information from
LIRA or
LIF holders. The person must
contact the financial institution that administers the
LIRA or LIF. For more information, this person can also contact the
Direction des régimes complémentaires de retraite de Retraite Québec by
telephone or by email.
Three sections to consult following the death of a family member
Other useful link
- The Death section on Québec.ca indicates the steps to take following a person's death.