People use in terrorem clauses to discourage estate litigation.
By threatening forfeiture, the person creating the estate plan is attempting to reduce the likelihood that a beneficiary will challenge the will or trust after death.
These clauses are most often included when the person anticipates disagreement, resentment, or conflict among beneficiaries, or when prior family disputes make litigation likely.
At a practical level, an in terrorem clause is intended to protect the estate plan from delay, expense, and uncertainty by raising the cost of bringing a challenge.
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