Petition to compel arbitration on question of the competency of the trustee/beneficiary does not violate no-contest clause

The Supreme Court of California reversed the intermediate appellate court by holding that a petition to compel arbitration in accordance with the terms of the trust on the question of a trustee/beneficiary’s competency to take various actions authorized by the trust terms did not violate a no-contest clause directed at actions seeking to “void, nullify, [or] set aside” or to change trust provisions.

The clause does not apply to proceedings to determine competency to exercise rights conferred by the trust terms.

Johnson v. Greenelsh, 217 P.3d 1194 (Calif. 2009).