A no-contest clause is a provision in a will stating that any beneficiary who challenges the will’s validity forfeits any designated inheritance they would have otherwise received. Texas courts generally enforce these clauses. However, under Texas Estates Code § 254.005, a beneficiary who contests the will can still claim their inheritance if they can prove that they had just cause for bringing the challenge.
A challenge can cost a beneficiary their entire inheritance; no-contest clauses are worth discussing with an estate planning attorney in Houston before you sign your will.
How a No-Contest Clause Works
Wills often include a clause stating that if the beneficiary challenges the will and loses, they forfeit their inheritance under the instrument. The threat discourages disgruntled beneficiaries from pursuing costly probate litigation simply because they’re unhappy with their share.
The Good Faith and Just Cause Exception
If no-contest clauses were completely unchallengeable, it would produce many untoward outcomes. Individuals who coerced a decedent or placed them under duress before signing a will would have total legal protection. Likewise, a testator who lacked capacity to create a will might include or exclude heirs they would otherwise not. In these instances, the rightful beneficiaries would likely suffer harm.
Texas Estates Code § 254.005 places limits on the enforceability of these clauses. If a challenger can show they acted in good faith and had just cause, the forfeiture clause doesn’t apply, even if their challenge ultimately loses.
Texas courts have defined good faith as honesty of intention or a reasonable belief the challenge was likely correct. They have defined just cause as bringing the action on reasonable grounds with a fair and honest reason behind it. Neither term is precisely defined in the statute, so courts evaluate these issues case by case.
What Counts as a “Contest”
Texas courts have held that the clause only applies to actions that directly challenge the will’s validity or its provisions disposing of property (not to every dispute connected to the estate). A lawsuit seeking to remove an executor or trustee for misconduct generally doesn’t trigger the no-contest clause; it doesn’t attack the will or inheritance. Texas courts construe these clauses narrowly.
Should You Include a No-Contest Clause in Your Will?
A no-contest clause can deter litigation, but it’s not a foolproof shield. The good faith and just cause exception is available to any contestant. Accordingly, a no-contest clause works best as one part of a broader estate plan.
No-contest clauses might make the most sense in the following situations:
- A blended family where children from a current and prior marriage are treated differently
- An estate that leaves unequal shares to children or other close family members for personal reasons
- A situation where one beneficiary has already expressed dissatisfaction with how the estate is being divided
- An estate where the testator has made significant charitable bequests that family members might be inclined to challenge
- A situation involving a beneficiary who has a history of or previously threatened legal action over inheritance matters
- An estate plan that deviates substantially from what beneficiaries might expect based on a prior will or promises
Ultimately, whether a no-contest clause is right for your will depends on the unique facts of your situation. An experienced Texas estate planning attorney can help you evaluate your situation and determine whether such a clause makes sense for your will.