No-Contest Clause Basics

Sometimes when individuals draft their wills, they decide to leave out one or more family members. Perhaps they had a falling out or became estranged over time, and as a result the individual would rather leave money and property to someone else. When you give a close relative a small share of your estate or no share at all, they may decide to contest your will. Especially if the relative is your next of kin, they could stand to gain a lot of money by contesting your wishes.

If a will is successfully contested, the drafted will is considered void and your estate is probated as if you had no will. This means that your estate will be divided according to state intestacy laws. Under intestacy, typically your spouse and children – or whoever may be your next of kin – get the largest shares of your will. So a relative who believes that he or she could gain more money under intestacy than under your will may decide to contest it. Fortunately, you can take steps to protect your will by including a No-Contest clause.

The No-Contest clause, also known as the “in terrorem” clause, states that anyone who contests your wishes gives up his or her inheritance under the will. This means that a disgruntled relative would essentially have to gamble their inheritance for the chance to successfully overturn your will. As long as the relative is given a large enough inheritance that he or she would be scared to risk it, a no-contest clause will scare off almost any greedy individual.

If you believe that your will is going to be controversial among your family, consider talking to an estate planning lawyer. The No-Contest clause and other legal protections can help to ensure that your wishes are upheld even after you are gone.

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To learn more about drafting a No-Contest clause and other ways to protect your will, please contact the experienced Austin estate planning lawyers of Slater Kennon & Jameson, LLP today at 512-338-1100.