Source: https://brian-lerner-estate-blog.com/2016/02/
Timestamp: 2018-05-23 14:35:11
Document Index: 320133837

Matched Legal Cases: ['§21310', '§21311', '§21310', '§21315', '§21310', '§21300']

February | 2016 | Estate Attorney Blog
A protected instrument means both of the following (Prob C §21310(e)):
The current statutory scheme greatly restricts the enforceability of no-contest clauses. This law adopts a general rule that a no-contest clause “shall only be enforced” against contests that fall within one of three types (Prob C §21311):
The current statutory scheme at Prob C §§21310–21315 ostensibly governs the enforceability of a no-contest clause in any instrument that became irrevocable on or after January 1, 2001.Prob C §21315(a). But whether this scheme is conclusive or not depends on the date of irrevocability.
Although no-contest clauses are intended to discourage litigation, a no-contest clause does not, in and of itself, preclude litigation. Rather, if enforceable, it requires the beneficiary to choose between accepting the gift provided in the instrument and pursuing a claim that is a contest. Of course, if the instrument makes no gift to the beneficiary, the no-contest clause is ineffective as a deterrent because the already disinherited beneficiary has nothing to lose by pursuing the claim.
No Contest Clauses Historical Overview
While the enforceability of no-contest clauses has been restricted over time, these clauses were traditionally regarded as the biggest single obstacle to trust and estate litigation. A no-contest clause is a provision in an otherwise valid instrument that, if enforced, would penalize a beneficiary if the beneficiary files a contest with the court. Prob C §21310(c); former Prob C §21300(d). A typical no-contest clause provides that a beneficiary will forfeit his or her beneficial interest in the estate plan if he or she seeks to invalidate or impair the instrument or any of its provisions.