Sometimes, probate proceedings are relatively simple. The personal representative of a Texas estate presents documents to the courts. They communicate with creditors, file tax returns and distribute assets to beneficiaries.

Other times, families end up going to probate court because of conflicts related to an estate. People may question the validity of the will. In specific circumstances, individuals may be able to ask the courts to set aside a will by asserting that a testator couldn’t understand the documents or altered them due to outside influence. Illegal inclusions and outdated documents might also result in family members legally challenging a will.

Sometimes, testators have already planned in advance for controversy regarding their estate plans. They may have added a no-contest clause to their will. Could beneficiaries pursuing probate litigation lose their inheritance because they sue?

No-contest clauses can result in a penalty

People sometimes call no-contest clauses in terrorem, forfeiture or penalty clauses. Regardless of the name used, the goal of the clause is the same. The testator hopes to deter unnecessary litigation by reducing or eliminating the property inherited by those who challenge their estate plan.

The reasoning behind the probate litigation and the success of the lawsuit influence whether or not the Texas probate courts may uphold the no-contest clause. If the lawsuit is successful, meaning that there were major issues with the estate planning documents, then the courts may choose to set aside the no-contest clause rather than to enforce it.

Occasionally, the courts can choose not to enforce a no-contest clause even if a lawsuit is unsuccessful. If there is reason to believe that there was probable cause to challenge the will and the plaintiff acted in good faith, then the courts might allow the plaintiff who initiated the lawsuit to retain their inheritance.

Otherwise, probate litigation could theoretically cost a beneficiary their share of the estate. People need to feel confident about their decision to raise questions about a will if it includes a no-contest clause.

Those considering probate litigation may need help evaluating their circumstances to determine if their inheritance might be at risk. Reviewing an estate plan and the alleged issues with it at length can help concerned beneficiaries and family members choose the best response to questionable wills.