California is known to be famous for its weather and it’s strict rules and regulations. The California government and security department always emphasize on maintaining the law and the clauses. No contest clause is one of the famous clauses of California.
What the clause state
The no-contest clause is an in terrorem clause. It discourages to go against your will or trust by your own relative. Basically, the clause is designed to prevent frauds. It also helps you to get rid of disgruntled relatives who may go against you and sue you for your will and trust. No contest clause in California comes under in probation code 21311.In California, the litigation over no contest clause is increasing. There were 17 reported cases from 1990 to 1992 and later there are 26 cases from 1992 to 2007 with many unreported cases. So the clause has an importance in California.
How it works in California
If someone is going against your will and sue you in the court then the case will be sought out according to no contest clause. If the specific person is suing you over some properties and if he wins he will get what he claims and if he loses he won’t get any penny and lose what you have left for the person. If someone who didn’t get anything and loses then it’s ok for the person as he didn’t have anything but if he wins then your will and trust will be divided into halves and the person will get his half.
The changes of no contest clause in California
Though it is the main principle of the no-contest clause in California some changes have been done over the years. Like it changed actions of beneficiaries who are subjected to no contest clause. The way of litigating the disputes between the parties is changed. Previously a petition is filed in the court if the specific action constituted a contest to the estate planning documents and it is canceled now. Fiduciaries administering instruments response to the no-contest clause by challenging the instruments are changed.
If you are determined and have a good reason to go against the will and trust, then consult a local attorney first.