No Contest Clauses – Not Just for Wills

Estate planners often advise their clients to include a no contest clause, or in terrorem clause, in their documents as to deter feuding family members from contesting wills or trusts.

The validity of such clauses depends on the state and its laws. Colorado, for instance, allows them when the contesting party lacks probable cause to bring their challenge. Thus, while some estate planners and contesting parties may believe that a no contest clause is generally not enforced, the reality, however, is that no contest clauses are enforceable when there is no probable cause for bringing the will contest.

Planners should also consider the implementation of a no contest clause in both a will and trust when counseling their estate planning clients though discussion of whether a challenge to the will, trust or overall estate plan is likely and what types of challenges may arise.

See Matthew Skotak, No Contest Clauses – Not Just for Wills, Fiduciary Law Blog, July 3, 2018.

Special thanks to Jim Hillhouse (Professional Legal Marketing (PLM, Inc.) for bringing this article to my attention.