One of the primary reasons why people create wills is to ensure that their wishes will be understood and honored when they are no longer around to make important decisions. Unfortunately, we live in a litigious world. It is not uncommon for the will to become the subject of a costly legal battle.
One of the steps you can take to protect your will from disputes is to include a no-contest clause in the document. This may be a great idea if you have a disgruntled beneficiary who may be dissatisfied with the property you bequeathed to them.
So what is a no-contest clause?
Basically, a no-contest clause dictates that any beneficiary who disputes the validity of the will would forfeit the inheritance apportioned to them in the will. However, a no-contest clause does not prevent non-beneficiaries from disputing the will.
According to the Revised Statute 137.005 of Nevada laws, a no-contest clause is enforceable, subject to certain limitations. For instance, a will that is a product of fraud, undue influence or improper execution can be successfully contested and invalidated. In this case, the contesting party will not lose their inheritance.
Conducts that can trigger a no-contest clause
A no-contest clause will be triggered when a beneficiary engages in conduct that is prohibited in the will. As such, it is important that you stipulate conducts that can trigger the invocation of the clause. Some of the conducts that might trigger this provision include:
- A beneficiary commencing a civil lawsuit against the testator’s estate or other beneficiaries
- Interference with the disposition of the will
- Attempts to interfere with the testator’s power of attorney
When you create a will, you do so to protect your estate and loved ones. Find out how you can protect your will from disputes and ensure that your wishes are honored when you pass on.