What is a no-contest clause
A no-contest clause is commonly referred to as an in terrorem clause. This type of clause is used frequently in contracts and wills to ensure beneficiaries and applicable parties that challenge the terms and requirements as laid down in a will shall disinherit the agreed estate. It is important when writing a will or setting up a trust to benefit your nominees that you are fully aware of the factors associated with no-contest clauses. For a reliable and confidential overview of non-contest clauses you are advised to seek professional consultancy.
To find out how DeltaQuest can assist you with your asset protection and inheritance needs, please Contact Us.
No-contest clause explained
A no-contest clause is used as a method of threatening specific parties or individuals with appropriate litigation from the following circumstances;
- Acting in certain way
- Refraining from acting in a certain manner
- Ceasing to act
A no-contest clause is often considered as a way of legally threatening specific beneficiaries with disinheritance in the instance that the beneficiaries challenge the terms and conditions of the will, trust or contract in court.
A no-contest clause is only effective in a court of law where the challenging individual does not obtain a probably cause as stipulated under the Uniform Probate Code (UPC). The Uniform Probate Code is implemented throughout many states across the USA including Florida, New Mexico and Montana.
In principle, the no-contest clause serves as a form of protection against the nominated beneficiaries causing problems with regards to the inheritance once the testator dies.
Print This Post
