A no contest clause meaning

A no contest clause (also called a forfeiture or in terrorem clause) is a provision in a will or trust stating that a beneficiary who challenges the instrument, its validity, construction or administration, will forfeit or reduce their entitlement, usually with a gift-over to another beneficiary. It is used to deter probate and trust disputes. This is a descriptive term used in private client practice across England & Wales, Scotland, Northern Ireland and Ireland, rather than a defined statutory label. Such clauses are generally drafted to bite only on unsuccessful challenges, and are construed strictly. Enforceability is subject to public policy and statute. A no contest clause cannot oust the court’s supervisory jurisdiction, prevent applications for directions, or bar statutory rights or claims (for example, family provision under the Inheritance (Provision for Family and Dependants) Act 1975 in England & Wales, the 1979 Order in Northern Ireland, legal rights in Scotland, or legal right share and section 117 Succession Act 1965 claims in Ireland). Clauses purporting to penalise the exercise of those rights are likely ineffective. Key drafting points include: clearly identifying trigger events, scope (e.g. construction proceedings excluded), and consequences; providing an effective gift-over; and aligning trustee/executor discretions with the intended...