No-contest clause 2025

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The document discusses two legal cases regarding jurisdiction and no-contest clauses in trusts. In 'Crociani v Crociani', the Privy Council ruled that a clause in a Bahamian discretionary trust did not confer exclusive jurisdiction to any court, allowing Jersey proceedings to continue. In 'AN v Barclays Private Bank & Trust', the Grand Court of the Cayman Islands upheld the enforceability of 'no contest' clauses in discretionary trusts, stating they can prevent beneficiaries from challenging trust terms unless brought in good faith.

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What is the probable cause of the no-contest clause?

Probable cause refers to a reasonable belief that a challenge to the trust or will has a valid legal basis. The importance of probable cause cannot be overstated. Without it, no contest clauses are generally enforceable, and beneficiaries who contest the trust may lose their inheritance or bequests.

How to beat a no-contest clause?

If a direct contest is filed with the court and the person filing the lawsuit has facts that would cause a reasonable person to believe that there is a likelihood that the lawsuit would be won after further inquiry and discovery, then the no-contest clause will NOT apply.

How does a no-contest clause work?

No-contest clauses (also known as in terrorem clauses , contest clauses, anti-contest clauses , and forfeiture clauses) are clauses in a will that impose a condition upon a devisee or legatee that they will not dispute the provisions of a will.

What type of will cannot be contested?

Another option: Living trusts Upon your death, the assets are distributed to your trust beneficiaries ing to the terms of the trust. A trust does not pass through the court for the probate process and cannot be contested in most cases.

Is a no-contest clause a good idea?

The main pro to including a no-contest clause is that it often does effectively deter beneficiaries from bringing a legal challenge to the will. On the flip side, however, if there actually were any errors in the will or trust, the existence of the no-contest clause leaves no recourse for that beneficiary.

What is an example of a no contest?

For example, say you have two grown children, one of whom cannot handle money responsibly. If you leave him $10,000, he might think twice about challenging your will, because if he sues and loses, the no-contest clause means he wouldnt get the $10,000.

What triggers a no-contest clause?

This means that the no contest clause will be triggered only when there is an absence of probable cause in the direct will or trust context. Probable cause is a low standard designed to protect an objectors right to assert arguable legal claims.

No-contest clause 2025

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