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No-Contest Clause

Probate & Legal

A trust or will provision where a beneficiary who unsuccessfully contests the document loses their entire inheritance.

A no-contest clause (also known as an in terrorem clause) discourages beneficiaries from challenging a will or trust. It states that any beneficiary who contests the document and loses will forfeit their inheritance.

How a No-Contest Clause Works

The clause creates a financial risk for challengers. A beneficiary unhappy with their share must weigh the possible gain against losing everything. This makes frivolous or emotion-driven challenges far less likely.

Arizona Enforcement

Arizona courts have generally upheld no-contest clauses. Enforcement depends on the facts of each case. A beneficiary who files based on real concerns may see different results. Examples include proven undue influence or lack of capacity. Someone who challenges simply out of disappointment faces a higher risk of forfeiture.

No-Contest Clauses and Trusts vs. Wills

A no-contest clause is especially powerful in a trust. Trusts do not go through probate. A challenger must file a brand-new lawsuit and pay their own legal costs. They also risk forfeiting their inheritance. In contrast, wills go through probate. That open court process makes challenges easier to start.

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