No-contest clauses, also called in terrorem clauses, can be powerful tools in estate planning. They’re meant to discourage heirs from fighting over a will or trust by threatening disinheritance if someone challenges the document. But no-contest clauses aren’t foolproof. Many people misunderstand how they work or use them incorrectly, leading to unintended consequences. Knowing the common mistakes with no-contest clauses is essential if you want your final wishes respected and your loved ones spared from legal battles. Let’s look at the most frequent missteps people make and how to avoid them.
