The clause forfeits a beneficiary's interest upon an unsuccessful contest. Most states enforce it subject to a probable cause exception, and several refuse enforcement entirely.
The clause is only effective where the beneficiary receives something meaningful.
Alternative Names:
In Terrorem Clause|Forfeiture Clause
Why it Matters?
The probable cause exception substantially limits enforcement, since a contestant with reasonable grounds forfeits nothing even if unsuccessful, which means the clause deters only speculative challenges. The clause also has no effect on a beneficiary receiving nothing or a nominal amount, since there is nothing to forfeit. Leaving a meaningful bequest is what gives the clause force, which is a drafting consideration.
Frequently Confused with
Related terms
Frequently asked questions
What limits enforcement?
When is the clause ineffective?
