05 May
The contents of a will are often significantly different from one case to the next. Some testators only have one or two beneficiaries, limited property and no minor children to protect. Others may find themselves in far more complicated situations that require thorough estate plans.
They may worry about conflict after their passing that could lead to costly probate ligation and damage to family relationships. People with blended families, challenging family dynamics or unusual legacy wishes may need to plan carefully to ensure that their family members, presumptive heirs or beneficiaries do not try to take legal action against their estate by challenging their wills. These individuals may need to consider adding no-contest clauses to their wills to deter people from pursuing frivolous litigation that could undermine their wishes and diminish the value of their estate.
What does a no-contest clause do?
A no-contest clause is a special inclusion in a will or in trust documents intended to deter challenges in probate court. Some people refer to no-contest clauses as penalty clauses or in terrorem clauses. If a beneficiary named in the will initiates a will contest in probate court, they could lose their inheritance as a result.
Texas, like most states, allows testators to include no-contest clauses in their wills. The probate courts may uphold the clause denying an individual an inheritance if they decide to contest the will. There are exceptions in cases where the probate courts believe that an individual acted in good faith because they had reason to believe there was a legitimate issue with the documents.
People who have decided to leave uneven bequests to different family members or to disinherit someone who might have inheritance rights if they did not draft a will may want to include no-contest clauses to prevent their loved ones from fighting over their property. People may also want to consider creating trusts and explaining their wishes to their loved ones in advance so that their plans do not surprise or disappoint beneficiaries or family members.
Learning more about estate planning tools, including no-contest clauses, can help testators leave a meaningful legacy. Steps taken to prevent loved ones from fighting can help ensure that their estate has a positive impact rather than a negative one.