In terrorem clauses are not always enforced in New York.
Although New York law recognizes no‑contest clauses and will enforce them in appropriate circumstances, enforcement is not automatic. The effect of an in terrorem clause depends on how it is written, where it appears, and what conduct is alleged to have triggered it.
New York courts apply these clauses narrowly because forfeiture is a harsh result. Courts are cautious about enforcing a clause in a way that would discourage legitimate concerns about the validity of an estate plan.
As a result, the presence of an in terrorem clause does not guarantee that a beneficiary will lose their inheritance simply because a dispute arises. Whether a clause is enforced depends on the specific facts, the beneficiary’s actions, and how the law applies to those actions.
Hani Sarji
New York lawyer who cares about people, is fascinated by technology, and is writing his next book, Estate of Confusion: New York.
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