Posted On: November 16, 2006 by Joel A. Schoenmeyer

In Terrorem (No Contest) Clauses

Bankrate.com has a nice article (here) summarizing what an in terrorem (or "no contest") clause can do for you:

The in terrorem provision, known less formally as a "no-contest" clause, is a paragraph or more of legal boilerplate aimed, as its Latin name implies, to scare off legal challenges by heirs who don't feel they've been given their fair shares of               the enchilada.

In essence, the provision states that if you contest this will or trust, you forfeit your inheritance. In fact, to continue with the spooky theme, typical language instructs the court to consider contentious heirs as having died childless before the deceased.

The article also presents some interesting differences in state laws.  Evidently in terrorem clauses are not recognized (or enforced) by Florida courts, and in a few states you can actually have your Will declared valid while you are still alive.

I previously blogged about in terrorem clauses here.

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