No-Contest Clause

What is it?

A no-contest clause (also called an "in terrorem" clause) states that any beneficiary who challenges the validity of the trust will forfeit their inheritance. This discourages frivolous lawsuits and family disputes.

Why is it important?

This clause helps preserve family harmony and prevents expensive litigation. Beneficiaries think twice before challenging the trust because they risk losing everything. However, enforceability varies by state.

Example Language

If any beneficiary contests this Trust or any of its provisions, that beneficiary shall forfeit their entire interest, which shall be distributed to the remaining beneficiaries.