Update Your Will After Divorce in PEI: What the Wills Act Does and Doesn't Do
Update Your Will After Divorce in PEI: What the Wills Act Does and Doesn't Do
Prince Edward Island's Wills Act provides some automatic protections after divorce — but they're narrower than most people assume, and the gaps can be catastrophic.
What the Wills Act Does Automatically
Once your divorce is finalized (Certificate of Divorce issued on Day 32), the Wills Act treats your ex-spouse as having predeceased you for purposes of your existing will. This means:
- Gifts to your ex-spouse are automatically revoked
- Executor appointments naming your ex-spouse are automatically revoked
- Trustee appointments naming your ex-spouse are automatically revoked
You don't need to do anything to trigger this — it happens by operation of law.
What the Wills Act Does NOT Do
It doesn't redirect your assets. If your will says "everything to my spouse" and contains no alternate beneficiaries, the revocation doesn't send your assets to your children or parents. Instead, those assets fall into your residual estate and may pass under PEI's intestacy rules — which may not align with your wishes.
It doesn't apply during separation. The automatic revocation only activates once the divorce is legally final. During the entire separation period (at least 12 months) and the 31-day appeal window, your original will remains fully in effect. If you die during separation, your ex-spouse inherits exactly what the will says.
It doesn't apply to beneficiary designations. This is the critical gap.
The Beneficiary Designation Trap
Beneficiary designations on financial products operate completely outside the Wills Act. They're governed by contract law between you and the financial institution. Divorce changes nothing about them.
If your ex-spouse remains the named beneficiary on your:
- RRSP or RRIF
- TFSA
- Life insurance policy
- Employer group benefits
They receive the full payout directly upon your death — regardless of what your will says, regardless of the divorce, regardless of your new relationship.
For pre-tax accounts like RRSPs, the damage is compounded: your ex-spouse receives the funds tax-free, while your estate is stuck with the income tax liability on the deemed disposition. Your children or new partner inherit a smaller estate minus the tax bill.
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What You Need to Do
Immediately after the Certificate of Divorce:
Draft a new will. Don't rely on the Wills Act's automatic revocation — write a comprehensive new will that explicitly names your executors, trustees, and beneficiaries.
Contact every financial institution holding registered accounts and request beneficiary change forms. Sign new designations and get written confirmation of the update.
Contact your life insurance provider (both personal and employer group coverage). Update the beneficiary. For employer plans, you may need to go through HR.
Revoke existing Powers of Attorney. PEI law does NOT automatically terminate a POA naming your ex-spouse upon divorce. You must execute a formal written revocation, sign it before witnesses, and deliver copies to your ex-spouse, your bank, and your medical providers.
Draft a new Personal Directive (healthcare directive). Same issue — divorce doesn't automatically revoke your ex-spouse's authority over medical decisions.
The Timing Problem
You should have new estate documents ready to execute on Day 32 — the moment your Certificate of Divorce is available. Draft them during the 31-day appeal window so you can sign and witness them immediately.
Every day between your divorce and updating these documents is a day where:
- Your ex-spouse could inherit assets you didn't intend
- Your ex-spouse retains legal authority over your medical decisions
- Your estate plan doesn't reflect your actual wishes
The Prince Edward Island After-Divorce Checklist includes a complete estate planning audit with every account type, institution, and form you need to update — plus a timeline that coordinates these changes with your other post-divorce tasks.
Get Your Free Prince Edward Island — After-Divorce Life-Admin Checklist
Download the Prince Edward Island — After-Divorce Life-Admin Checklist — a printable guide with checklists, scripts, and action plans you can start using today.