How do beneficiary designations work in Pennsylvania?

Beneficiary designations on life insurance, retirement accounts, POD bank accounts, and TOD brokerage accounts determine who receives those assets at death (20 Pa.C.S. § 6111.1; 20 Pa.C.S. § 6111.2; 20 Pa.C.S. § 6108; 20 Pa.C.S. § 6114; 20 Pa.C.S. §§ 8801-8816; 20 Pa.C.S. ch. 63 (§§ 6301-6306); 20 Pa.C.S. ch. 64 (§§ 6401-6413); 20 Pa.C.S. ch. 62 (§§ 6201-6205); 20 Pa.C.S. ch. 85 (§§ 8501-8505); 20 Pa.C.S. ch. 53 (§§ 5301-5321); 42 Pa.C.S. § 8124(b)(1)(ix)). These designations override the terms of a will or trust. Outdated designations remain in effect regardless of other estate planning documents.

What happens to beneficiary designations after divorce in Pennsylvania?

Yes. Pennsylvania automatically revokes an ex-spouse as beneficiary upon divorce for the following asset types: life insurance, retirement accounts, annuities, pod accounts, tod accounts (20 Pa.C.S. § 6111.2). However, ERISA-governed employer plans such as 401(k)s and pensions are subject to federal law and must be updated manually regardless of state rules.

Are inherited IRAs protected from creditors in Pennsylvania?

Pennsylvania does not provide specific creditor protection for inherited IRAs (42 Pa.C.S. § 8124(b)(1)(ix); Jones v. McGreevy, 270 A.3d 1 (Pa. Super. 2022)). Following the Supreme Court's Clark v. Rameker (2014) decision, inherited IRAs are generally not protected in bankruptcy proceedings in states without their own protective statutes.

Does Pennsylvania default to per stirpes for beneficiary designations?

No. Pennsylvania does not default to per stirpes for beneficiary designations (20 Pa.C.S. § 6114 (no substitution-of-issue rule for conveyances); 20 Pa.C.S. § 6108; 20 Pa.C.S. § 6306; contrast 20 Pa.C.S. § 2514(9) (wills only)). If a named beneficiary dies before the account holder, the share typically lapses unless the designation explicitly includes per stirpes language or names contingent beneficiaries.

Are Beneficiary Designations Protected in Pennsylvania?

Check how divorce, creditors, and state laws affect your life insurance, retirement accounts, and other beneficiary designations.

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This tool provides general information about state beneficiary designation laws. It does not constitute legal advice. ERISA-governed plans are subject to federal law which may differ from state law. Consult a licensed attorney for advice specific to your situation.Data verified 2026-07-13

Frequently Asked Questions

Beneficiary designations on life insurance, retirement accounts, POD bank accounts, and TOD brokerage accounts determine who receives those assets at death. These designations override the terms of a will or trust. Outdated designations remain in effect regardless of other estate planning documents.

Yes. Pennsylvania automatically revokes an ex-spouse as beneficiary upon divorce for the following asset types: life insurance, retirement accounts, annuities, pod accounts, tod accounts. However, ERISA-governed employer plans such as 401(k)s and pensions are subject to federal law and must be updated manually regardless of state rules.

Pennsylvania does not provide specific creditor protection for inherited IRAs. Following the Supreme Court's Clark v. Rameker (2014) decision, inherited IRAs are generally not protected in bankruptcy proceedings in states without their own protective statutes.

Yes. The federal Employee Retirement Income Security Act (ERISA) preempts state law for employer-sponsored plans such as 401(k)s, pensions, and group life insurance. Even if Pennsylvania automatically revokes an ex-spouse upon divorce, ERISA-governed plans follow the designation on file with the plan administrator. The Supreme Court confirmed this in Egelhoff v. Egelhoff (2001) and Kennedy v. Plan Administrator (2009).

When no valid beneficiary designation exists, the asset typically passes to the account holder's estate and is distributed through probate under Pennsylvania's intestacy laws. This can result in delays, additional costs, and the assets going to someone other than the intended recipient. See who inherits with the Pennsylvania inheritance calculator.

No. Pennsylvania does not default to per stirpes for beneficiary designations. If a named beneficiary dies before the account holder, the share typically lapses unless the designation explicitly includes per stirpes language or names contingent beneficiaries.

Beneficiary Rules in Pennsylvania

Pennsylvania automatically revokes an ex-spouse as beneficiary upon divorce (Yes). This applies to state-governed assets such as life insurance and POD accounts, but not ERISA-governed employer plans. Automatic revocation does not extend to federally governed accounts.

Spousal consent for beneficiary designations in Pennsylvania is limited to ERISA-governed qualified plans under federal law. State-level consent requirements do not apply in non-community property states. Use the Pennsylvania inheritance calculator to see how assets without valid designations are distributed.

Inherited IRA creditor protection in Pennsylvania is No creditor protection. Since the Supreme Court ruled in Clark v. Rameker (2014) that inherited IRAs are not protected under federal bankruptcy law, state statutes are the primary source of protection.

Pennsylvania's per stirpes default is No. Without contingent beneficiaries, a lapsed designation routes assets through probate. Estimate coverage needs with the Pennsylvania life insurance calculator.

SimplyTrust Editorial·Updated July 13, 2026

Legal Sources

Data sourced from Pennsylvania statutes and official state code. How we research.

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