Define: Terrorem Clause

A terrorem clause, also referred to as a no-contest clause, is a provision in a will that prohibits a beneficiary from disputing the terms of the will. In the event that the beneficiary challenges the will, they will forfeit their inheritance. These clauses are designed to discourage challenges to a will, but they are subject to strict regulations. Certain jurisdictions have exceptions to these clauses, such as when the beneficiary has reasonable grounds to contest the will or if the will includes instructions on how assets will be distributed if the clause is violated. Courts will analyse the will as a whole to ascertain the testator’s intention, and a challenge to the will may still be successful if it aligns with that intention.

A terrorem clause, also known as a no-contest clause, is a provision in a will that discourages beneficiaries from disputing the provisions of the will. If a beneficiary violates the clause by challenging the validity of the will, they may lose their inheritance or interest in the estate. However, the enforceability of terrorem clauses varies by jurisdiction and may be subject to strict interpretation. Some states, like New York, do not enforce terrorem clauses that prevent beneficiaries from questioning the eligibility or conduct of a fiduciary because it goes against public policy. In Michigan, terrorem clauses have limited power and may not be enforced if there is probable cause for contesting the trust or another related proceeding. Some jurisdictions have a probable cause exception to terrorem clauses. For example, in California, terrorem clauses may not be enforced if the beneficiary challenging the will acted in good faith and had probable cause for the challenge. Probable cause means there is evidence that would lead a reasonable person to believe that the contest or attack will likely succeed. When determining the enforceability of terrorem clauses, courts will interpret the entire will to understand the testator’s intent. Therefore, a challenge to a will, even with a terrorem clause, may succeed if it aligns with the testator’s intent in drafting the will.

This site contains general legal information but does not constitute professional legal advice for your particular situation. Persuing this glossary does not create an attorney-client or legal adviser relationship. If you have specific questions, please consult a qualified attorney licensed in your jurisdiction.

This glossary post was last updated: 17th April 2024.