What are no-contest clauses?
A challenge faced by some is the possibility that a beneficiary will challenge the the terms of a trust. A "no-contest" clause is a way to dissuade a beneficiary from contesting the terms of a trust. The clause, in essence, provides that a beneficiary would forfeit what he or she would've received under the trust if he or she challenges it.
Whether a no-contest clause is enforceable and how effective they may be in California will be topics explored in a subsequent post.