Thursday, January 2, 2014
In most cases, a “no-contest” provision in your will makes sense.
No-contest clauses discourage disappointed heirs from contesting your estate plan. They secure heirs’ cooperation by canceling their inheritance if they choose to contest the will or trust in any way. These clauses can be broad or narrow and even apply to transfers outside your will, like trusts and beneficiary designations.
However, be careful not to create unnecessary problems. In one case, a testator’s will and trust required his wife to sacrifice her community property rights in order to receive over $2 million in benefits from his trust.
See Jeffrey J. McKenna, No-Contest Clauses in Estate Planning, Moapa Valley Progress, Dec. 25, 2013.
Special thanks to Brian Cohan (Attorney at Law, Law Offices of Brian J. Cohan, P.C.) for bringing this article to my attention.