A no-contest clause is designed to prevent will challenges. When someone drafts an estate plan, they can include a no-contest clause stating that anyone who challenges the will automatically forfeits any inheritance they would have received.
For instance, suppose a beneficiary is left $10,000 but expected to receive much more—perhaps other beneficiaries received $100,000. If the beneficiary who received less challenges the estate plan, they would have to forfeit even the $10,000 that was left to them.
Challenges can still happen in some situations
A no-contest clause does not entirely guarantee that an estate dispute will not occur. First and foremost, beneficiaries can still file a challenge, even if they risk losing their inheritance by doing so.
Additionally, a no-contest clause may not always be enforced. Just because it exists does not mean the court will uphold it as valid.
For example, suppose a beneficiary believes that the deceased individual never intended to include a no-contest clause. They may allege that other beneficiaries exerted undue influence to ensure the clause was added. If the court finds that undue influence occurred, it may rule the no-contest clause invalid. In other words, if a person has a legitimate case, they may still be able to inherit despite the clause.
That said, a no-contest clause can help reduce the likelihood of frivolous challenges. A beneficiary with little chance of winning their case may decide that forfeiting their inheritance is not worth the risk.
Navigating a dispute
Estate disputes can be highly complex, and those involved must understand all of the legal options available to them.