When drafting a will or trust, many individuals include no-contest clauses to discourage beneficiaries from contesting the terms of the legal instrument. Also known as in terrorem clauses, they are designed to protect the testator’s or grantor’s wishes by penalizing beneficiaries who challenge the document. Under New Jersey law, these clauses are generally but not absolutely enforceable.
A no-contest clause is a provision in a will or trust that disinherits or penalizes a beneficiary if they contest the terms of the document. The goal is to deter frivolous or malicious challenges that could disrupt the testator’s or grantor’s estate plan. For example, a clause might state that a beneficiary who files a legal challenge will forfeit their inheritance or receive only a nominal amount.
Although New Jersey law recognizes no-contest clauses, a key exception exists for beneficiaries who have probable cause to contest the will or trust. If a court determines that the contesting party had a legitimate reason to believe the document was invalid — such as evidence of fraud, undue influence, or lack of capacity — the clause may not be enforced. At the same time, New Jersey law discourages baseless challenges that could drain estate resources and create unnecessary conflict among heirs.
For individuals creating a will or trust, including a no-contest clause can provide an added layer of protection for your estate plan. However, it’s important to work with an experienced estate planning attorney to ensure the clause is properly drafted and aligns with New Jersey law.
For beneficiaries, understanding your rights is crucial if you believe there are legitimate grounds to contest a will or trust. Consulting with a knowledgeable attorney can help you evaluate your options and determine whether probable cause exists to challenge the document.
If you have questions about no-contest clauses or other estate planning matters, our firm is here to help. Frieri Law Group in Cranford advises residents of Union, Morris and Somerset counties, as well as other New Jersey locations, on a full range of issues relating to wills, trusts and other estate planning instruments. To make an appointment, please call 908-883-3390 or contact us online.