Legal Definitions - anticontest clause

An anticontest clause, also commonly known as a no-contest clause or in terrorem clause, is a provision often included in a will or trust document. Its purpose is to discourage beneficiaries from challenging the validity of the will or trust in court after the person who created it has passed away.

Specifically, an anticontest clause states that if a beneficiary attempts to legally challenge the will or trust (for example, by claiming it was forged, that the person lacked mental capacity, or was unduly influenced), they will forfeit their inheritance or receive a significantly reduced share of the estate or trust assets. The intent behind such a clause is to prevent costly and time-consuming litigation among beneficiaries and to ensure the wishes of the deceased are honored without dispute.

Here are some examples illustrating how an anticontest clause works:

• Example 1: A Family Will

  Mrs. Eleanor Vance drafts her will, leaving her substantial estate equally to her two children, David and Sarah. However, she anticipates that David might be unhappy with some minor provisions and could try to challenge the will. To prevent this, she includes an anticontest clause stating: "If any beneficiary under this Will directly or indirectly contests or attempts to contest the validity of this Will or any of its provisions, that beneficiary shall forfeit all rights to any distribution from my estate and shall receive nothing."

  How this illustrates the term: This clause is a clear anticontest provision. If David were to file a lawsuit claiming, for instance, that his mother was not of sound mind when she signed the will, he would risk losing his entire inheritance, even if his challenge was ultimately unsuccessful.

• Example 2: A Charitable Trust

  Mr. Robert Chen establishes a revocable living trust, designating a significant portion of his assets to various charities and a smaller percentage to his distant relatives. The trust document contains an anticontest clause: "Should any beneficiary named herein initiate legal proceedings to invalidate this Trust or any of its terms, such beneficiary's interest in the Trust shall be immediately revoked, and their share shall be distributed to the remaining beneficiaries or charities as specified."

  How this illustrates the term: Here, the anticontest clause is applied within a trust context. It aims to protect Mr. Chen's charitable intentions from being overturned by disgruntled relatives who might prefer to inherit more themselves. Any relative who challenges the trust's validity would lose their entitlement.

• Example 3: Partial Forfeiture

  Mr. George Miller's will leaves his antique car collection to his nephew, Mark, and the rest of his estate to his niece, Lisa. He includes an anticontest clause that specifies: "If any beneficiary challenges this Will, their share shall be reduced to a nominal sum of one dollar ($1.00)." Mark, believing he should have received more than just the car collection, decides to challenge the will in court, alleging undue influence by Lisa.

  How this illustrates the term: This example shows an anticontest clause with a consequence of partial forfeiture rather than complete disinheritance. If Mark's challenge fails, or if the court upholds the anticontest clause, he would forfeit the valuable antique car collection and receive only one dollar, demonstrating the deterrent effect and the penalty for contesting the will.