A no contest clause, also known as an in terrorem clause, is a provision within a will which provides that if a beneficiary challenges the will, the gift left to that beneficiary is revoked, meaning they would forfeit their inheritance.
The intention behind a no contest clause is to act as a financial deterrent. A beneficiary who stands to inherit a significant sum may decide not to bring legal proceedings if doing so risks losing their entitlement entirely.
There are several reasons why a testator may choose to include a no contest clause in their will.
In some cases, the person making the will may wish to leave a lesser share to one beneficiary compared to others. A no contest clause is then included in an attempt to discourage that beneficiary from challenging the distribution of the estate.
Probate litigation can also be extremely costly. For this reason, a no contest clause may be used as a deterrent to reduce the risk of claims being brought against the estate, thereby helping to preserve estate assets for the intended beneficiaries.
In addition, many people wish to minimise the risk of disputes between family members after their death. A no contest clause may therefore be included in an attempt to prevent disagreements escalating into court proceedings, which can often result in lasting damage to family relationships.
The effectiveness of a no contest clause largely depends on the circumstances.
If the amount left to a beneficiary under the will is greater than what they might reasonably expect to receive through litigation, the clause is often a strong deterrent. In those circumstances, a beneficiary may be reluctant to risk losing a guaranteed inheritance.
However, where the potential outcome of a successful claim is significantly greater than the gift provided under the will, a beneficiary may still decide to pursue litigation despite the risk posed by the clause.
The courts in England and Wales generally recognise no contest clauses, but they interpret them cautiously. The courts are also likely to take a dim view of clauses that appear to be included purely to intimidate beneficiaries from pursuing legitimate claims.
Common grounds for challenging a will include:
The court is unlikely to uphold a no contest clause where it would prevent a beneficiary from properly investigating serious concerns about the validity of a will or if the beneficiary has not been left a reasonable financial provision.
No contest clauses are intended to discourage probate disputes by attaching financial consequences to any challenge. While they may deter weaker or speculative claims, they are often not sufficient to prevent well-founded claims where there are genuine legal concerns.
If you are considering challenging a will that contains a no contest clause, it is important to seek legal advice. A solicitor will be able to assess whether the clause has been properly drafted, advise on the strength of your potential claim, and explain the risks involved. It is also important to consider the available evidence, the value of the inheritance at stake, and whether settlement may be possible.
Ultimately, no contest clauses are not an absolute barrier to challenges, and each case will depend on its own facts and merits.
If you are considering challenging a will containing a no contest clause, please contact our specialist Inheritance Disputes solicitors, who will be able to advise you further.
Call us on 01206 593933 today to speak with one of our specialist inheritance disputes lawyers. Or complete the form below.
Disclaimer
The content of this article is provided for general information only. It does not constitute legal or other professional advice. The information given in this article is correct at the date of publication.
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