No Contest Clause

No Contest Clause And Its Importance

The clauses are needed to maintain the rules and regulations properly according to the constitution.One of the famous and effective clauses is the no-contest clause.

What is the clause about

No contest clause is designed to threaten someone for litigation, criminal prosecution, acting, ceasing to act and refraining from action. The clause basically refers to the frauds. The clause is also known as the in terrorem clause. There are various terms and conditions in this clause and the clauses help you to get rid of annoying relatives who will contest your will or trust. If they challenge you and loses then the clauses make sure that they don’t get a penny from you.

criminal prosecution

How it works

The funda of the clause is very simple. The clause discourages someone of your own, only if the specific person has something to lose in the court by going against your will. Let’s discuss it with an example. Suppose you have two children and one of them can’t handle and take care of money responsibly. You left 20000$ for him and if he goes against your will and loses in the court, according to no contest clause, he will lose the 20000$ and he won’t get any penny. And if you left nothing for him then there will be nothing to lose for him if he goes against your will and loses then he won’t get anything and it won’t be a loss for him, but if he wins the case then your property and estate will be divided into halves and he will get a half according to no contest clause.

Limitation of the clause

The limitation of the no-contest clause varies from state to state. If the will is irrelevant or fraud or something else of no importance then the no contest clause won’t be applicable. As it is a matter of inter-family issue and the relationship, bonding,and social value may decay so, some states or countries don’t approve of this.

Caution

Most people don’t worry about their will. However, if you feel that you have a good reason to go against the will then talk to a local estate attorney first. The attorney should know how the local court handles the no-contest clause. You need to follow the tactics the lawyer suggested.