Estate planning can be a delicate process that involves setting guidelines to help ensure that beneficiaries follow your wishes without any deviations. One tool you can leverage to help ensure that probate administration is a smooth and relatively seamless process for your loved ones – and your wishes – is a no-contest cause.
As the name suggests, including this clause in your estate plan bars your beneficiaries from contesting your will. If they do, they stand to lose a portion or all of their inheritance. However, you should know that there are instances when a no-contest clause can be overruled. Understanding these exceptions can help you to make informed decisions.
Probable cause to contest
Suppose beneficiaries have probable cause to contest a will; the no-contest clause you included in your estate plan can be overruled. Some legitimate reasons to contest a will include:
- Evidence of fraud
- Proof the estate owner was unduly influenced
- Lack of testamentary capacity
In such instances, the beneficiaries can challenge the validity of the will without forfeiting a portion or all of their inheritance. For example, suppose one of the beneficiaries has reason to believe that you were coerced into signing the will; they may have probable cause to contest the document. Nevada courts recognize the need to protect the integrity of the estate planning process, allowing challenges to be made in good faith and based on legitimate concerns.
Ambiguities in an estate plan
Beneficiaries may also contest your will if your instructions for estate administration are not clear enough. The use of ambiguous language in an estate plan leaves room for multiple interpretations that may lead to disagreements among beneficiaries. In order to put the matter to bed, the beneficiaries have the right to go before a judge and wait for their verdict.
Seeking a judge’s intervention to clarify your intentions can protect beneficiaries from the consequences of the no-contest clause. For example, if a will contains conflicting provisions about how assets should be distributed, a beneficiary may contest the will to resolve the ambiguity without triggering the no-contest clause.
Even though a no-contest clause should protect your estate plan from legal challenges, you should know that it is not absolute. Sometimes, beneficiaries can challenge an estate plan without triggering a no-contest clause. As such, you’ll want to keep in mind that connecting with a reputable legal team is always an option as you set up your plan or work through revising it.