Generally, pension plans do not form part of your estate when you die and are free from Inheritance tax.Can a lump-sum pension be paid to a deceased person?
The CRA noted that it will not normally object to a lump-sum payment out of a pension plan that is paid to a beneficiary being reported on the terminal return of the deceased in accordance with the Act as a right or thing where the pensioner died prior to being entitled to receive retirement benefits under the pension.What happens if my spouse dies before I get my pension?
If you are married and die before you receive your first pension payment, PBGC will pay your surviving spouse a survivor benefit. Your spouse can begin this benefit as early as the date you would have been eligible to receive a benefit from PBGC.What is a beneficiary of a pension plan?
Beneficiary Generally, a person designated by a pension plan participant, or by the plan's terms, to receive some or all of the participant's pension benefits upon the participant's death. application for benefits: