What is a no-contest clause?

A no-contest clause, or in-terrorem clause, is a clause often written into a will in North Carolina that seeks to deter legal challenges to the will. This clause states that if a beneficiary challenges the will, then they forfeit their entitlement to the gifted property. It allows the executor of the will to enforce the clause by disinheriting any beneficiary who seeks to contest the will in court. No-contest clauses are valid in North Carolina, but are subject to certain exceptions. For example, if the beneficiary can show that there was fraudulent activity by the executor of the will, then the clause is not enforceable. In addition, North Carolina courts will not enforce a no-contest clause if the challenge is reasonable, made in good faith, and based on a legitimate legal argument. No-contest clauses are designed to discourage legal challenges to a will, as it puts the beneficiaries of the will in a difficult position. Challenging the will could result in them losing the property they have been promised, so it is generally in their best interest to accept the bequest instead of challenging the will in court. This, in turn, makes it less likely that a will is successfully challenged and ensures that the wishes of the testator are carried out exactly as they intended.

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What is a no-contest clause?

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