When a person who held an
LIRA or an
LIF dies, the LIRA or LIF balance is no longer locked in. It is paid 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 the
breakdown of a former union, 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.
In all cases, cashed amounts are taxable, unless they can be transferred tax-free. For more information on tax rules regarding this matter, please contact the Canada Revenue Agency or call 1 800 959‑7383.