What is a no-contest clause?

If you don’t want anyone to challenge your estate plan, you may consider using a no-contest clause. This clause states that a will contest is not allowed and that your beneficiaries are simply supposed to accept whatever you have decided. They may not agree with it, but they can’t challenge it. 

To ensure that they actually follow these instructions, the no-contest clause may state that a beneficiary has to give up their inheritance if they try to challenge the will. For example, someone may receive $10,000 when they previously assumed they were going to inherit $100,000. They want to challenge the will to get more money for themselves. But a no-contest clause means that challenging the will would require them to give up even the $10,000 that they were initially slated to receive.

Will it work?

This can work. It will certainly stop a frivolous will challenge. For instance, maybe you have two beneficiaries who are often at odds and who always find themselves in conflict. You’re worried that one of them will challenge the will just to start a dispute with the other person. A no-contest clause will likely keep them from doing so, as they won’t want to risk their inheritance.

But there are also some situations in which courts will not enforce no-contest clauses. It often depends if there was a valid reason for that contest. For example, if a beneficiary challenges the will because they claim it was altered through undue influence, and if they are proven correct, then they likely do not have to give up their inheritance. They were right that legal action needed to be taken.

This is just one part of drafting an estate plan and focusing on your family. Be sure you know exactly what legal options you have.