During the probate process, beneficiaries and direct descendants may want to challenge the will. They need to have the proper legal standing to do so. Typically, this means they have something to lose or gain. Examples include direct family members like adult children or grandchildren, along with beneficiaries who were included in previous copies of the will or even creditors who believe they are still owed by the estate.
However, the estate plan may contain a no-contest clause. How does this work, and what does it mean for a potential will challenge?
Giving up an inheritance
A no-contest clause essentially states that anyone who challenges the will automatically gives up the inheritance they were given.
For instance, say that a parent divides $200,000 between two siblings. One person gets $190,000, and the other only gets $10,000. The individual who received $10,000 may want to challenge the will because they believe they should have received a larger portion of the assets. But if they do so, they forfeit even the $10,000 they were originally allotted.
The goal of a no-contest clause is generally to prevent family members from engaging in complex disputes over a person’s estate. However, this can create a complicated situation. If a beneficiary believes there is a valid reason to challenge the will—such as undue influence or fraudulent documentation—they risk giving up their inheritance by doing so.
Addressing these legal issues
This is just one of the complexities that can arise during probate. Those going through this process need to know exactly what legal options they have and how to address any issues that may arise.
