Depending on the game:
*Or a lump sum
No. This amount is paid throughout the winner’s lifetime (in accordance with applicable terms).
Yes. Unlike other major prizes that are issued in a single payment, the life annuity prize has tax implications. The winner receives an income which is partly taxable. A designated insurance company pays the tax amount associated with the taxable part of each payment, based on the highest marginal tax rate in force at the time of purchase of the annuity. The balance of the annuity announced on the ticket (net of tax) is then paid to the winner on a weekly, monthly or annual basis.
Only an individual player aged 18 or older who lives in Québec can claim the "life annuity" lottery prize.
Yes. When a winner dies, the annuity is paid to the heirs for a maximum period of 20 years. This means that, if the winner dies within the first 20 years after the prize claim date, the heirs are entitled to the annuity (same payment frequency) for the balance of the 20 years which have not elapsed since the "life annuity" prize claim date. If the winner's death occurs following the first 20 years after the prize claim date, the legal heirs are not entitled to any amount.
However, where the winner is 71 years of age or older at the time the prize is claimed, the minimum payment period is shorter. In this case, it goes without saying that the winner is entitled to the annuity income. In case of death, the legal heirs can receive the income only until the date that would have been the winner's 91st birthday (Income Tax Act, article 304).
If the winner dies before he has given his decision to Loto-Quebec, the legal heirs will be entitled to the one time lump sum.
If the winner chose the annuity option, the designated insurance company will be responsible for the administration and payment of the annuity.