A no-contest clause can be used in your estate plan if you want to limit disputes between family members. It essentially says that someone who challenges the will gives up their inheritance.
There are situations in which this could be useful. For instance, say that you are leaving $100,000 to two adult children, but you are leaving only $10,000 to one and $90,000 to the other. You know that this could cause a conflict, so you use a no-contest clause. If the person who is receiving $10,000 decides to challenge the will because they think the money should be split up evenly, then they give up their right to even the $10,000 that you left them.
Did they have a valid reason for the challenge?
But no-contest clauses are not always going to be enforced. They are generally meant to stop frivolous challenges, such as a beneficiary who simply disagrees with your division of the assets.
But if they have a valid reason for the challenge, then the court may set the clause aside. For instance, perhaps they claim that the estate plan is a fraud or a forgery. If it is, then the no-contest clause does not stand. Or perhaps they claim that the other beneficiary used undue influence on you to get you to alter the will in their favor. If undue influence can be shown, then they do not have to give up their inheritance. It is a legitimate challenge that calls into question the validity of the estate plan itself.
No-contest clauses are just one tool that you may be interested in using in your estate plan. Take the time to carefully look into all of your options as you get this plan in place.