Update Your Will After Divorce in PEI: What the Wills Act Does and Doesn't Do
Prince Edward Island's default will rules may not do what you expect after divorce — and the gaps can be catastrophic.
What Not to Assume About Your Will
Do not assume that the divorce judgment or default PEI will rules will update executor or beneficiary designations in a private will. Replace or review the will with a PEI estate lawyer.
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, no default rule sends those assets to your children or parents. They may pass under PEI's intestacy rules — which may not align with your wishes.
It doesn't resolve the transition during separation. During the entire separation period (at least 12 months) and the 31-day appeal window, your original will may remain in effect. If you die during separation, your ex-spouse may inherit under the will's terms.
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 default PEI will rules — 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 the relevant institutions and providers.
Draft a new Personal Directive (healthcare directive). Same issue — divorce does not 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.