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“No Contest” Clauses in Arizona Wills and Trusts

by | Jan 29, 2025 | Wills and Trusts

When creating a will or trust, one way to protect your estate plan from disputes is by including a “no-contest” clause, also known as an in terrorem clause. In Arizona, these clauses serve as a deterrent against beneficiaries who might otherwise challenge your estate plan in court.

How Does a No-Contest Clause Work?

A no-contest clause typically states that any beneficiary who challenges the validity of the will or trust will forfeit their inheritance. For example, if a beneficiary believes they should receive a larger share and decides to file a lawsuit, they risk losing everything they were originally entitled to under the estate plan.

Are No-Contest Clauses Enforceable in Arizona?

Yes, Arizona law recognizes and enforces no-contest clauses. However, there is an important exception: if the challenge is made in good faith and with probable cause, the clause may not be enforced. This exception is designed to prevent beneficiaries from being unfairly penalized for raising legitimate concerns about issues such as undue influence or lack of capacity.

Why Include a No-Contest Clause?

Including a no-contest clause in your will or trust can:

  1. Reduce Family Disputes: It discourages beneficiaries from engaging in costly and time-consuming legal battles that can strain relationships.
  2. Protect Your Wishes: It helps ensure your estate plan is followed as you intended, without interference from disgruntled heirs.
  3. Minimize Probate Delays: By discouraging challenges, a no-contest clause can help streamline the administration of your estate. Contests to your will or trust can result in lengthy and expensive litigation, prolonging the grief process for your loved ones.

Drafting a Strong No-Contest Clause

To be effective, a no-contest clause must be carefully drafted. It should clearly outline the consequences of a challenge and comply with Arizona’s legal standards. Additionally, it may be a good idea to leave at least some inheritance to potential challengers. This provides them with an incentive to accept their share rather than risk losing it all. This will depend on your own individual circumstances and the strategy you wish to pursue.

How We Can Help

At Windrose Law Center, we can help you create a comprehensive estate plan that protects your legacy and minimizes the potential for disputes. Whether you’re considering a no-contest clause or need to update an existing plan, we’re here to guide you through the process. Contact us today to schedule a consultation and ensure your wishes are carried out.

By understanding how no-contest clauses work under Arizona law, you can make informed decisions to safeguard your estate and provide peace of mind for your loved ones.

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