What is an “in terrorem” or “no contest” clause?
An “in terrorem” or “no contest” clause is also known as a “forfeiture provision.” These are often found in wills and usually provide that, if any beneficiary contests the document, he/she forfeits their interest. These types of provisions are often valid, but are narrowly construed against a forfeiture. In addition, there are many exceptions to their application. If the will or trust is invalid, the forfeiture provision in the will or trust is also invalid. Many forfeiture provisions provide little protection from contests because the contestants are often not named as a beneficiary, therefore they are given nothing to forfeit.
