An in terrorem clause, also called a no‑contest clause, is a provision in an estate planning document that threatens a beneficiary with loss of their inheritance if they challenge the document.
In simple terms, an in terrorem clause says that a beneficiary who contests a will or trust risks forfeiting what they were given under that plan.
The term in terrorem comes from Latin and refers to acting by way of threat. The clause is designed to discourage legal challenges by attaching a financial consequence to them.
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