Property of Darrellksr From Wikimedia Commons |
If you are worried that disappointed heirs could contest your will or trust after you die, one option is to include a "no-contest clause" in your estate planning documents. A no-contest clause provides that if an heir challenges the will or trust and loses, then he or she will get nothing.
A simple "no-contest clause" will protect only the instrument, such as the trust or will. An enhanced "no-contest clause" will identify and protect other estate planning decisions, such as a beneficiary designation of an annuity, retirement plan, IRA, Keogh, pension or profit-sharing plan or insurance policy, a buy-sell agreement, a family partnership agreement, a limited liability company, or a marital agreement (pre- or post- nuptial), and may even penalize family members that conspire to frustrate the estate plan.
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