No Contest Clause - Construction Of Wills, Trusts, And Other Instruments - Probate - CA

Section § 21310

This section explains terms used when dealing with a 'no contest clause' in legal documents like wills or trusts. A 'contest' refers to a legal action taken by a beneficiary that could lead to penalties if the no contest clause is applied. A 'direct contest' means challenging the validity of the document or its terms due to reasons like forgery, lacking proper execution, or fraud. It could also include the revocation of a will or trust. A 'no contest clause' is a rule that discourages legal challenges by penalizing beneficiaries who file court pleadings. A 'pleading' is any legal document like a petition or complaint filed in court. 'Protected instrument' refers to documents that contain or are governed by the no contest clause.

As used in this part:

(a) “Contest” means a pleading filed with the court by a beneficiary that would result in a penalty under a no contest clause, if the no contest clause is enforced.

(b) “Direct contest” means a contest that alleges the invalidity of a protected instrument or one or more of its terms, based on one or more of the following grounds:

(1) Forgery.

(2) Lack of due execution.

(3) Lack of capacity.

(4) Menace, duress, fraud, or undue influence.

(5) Revocation of a will pursuant to Section 6120, revocation of a trust pursuant to Section 15401, or revocation of an instrument other than a will or trust pursuant to the procedure for revocation that is provided by statute or by the instrument.

(6) Disqualification of a beneficiary under Section 6112, 21350, or 21380.

(c) “No contest clause” means a provision in an otherwise valid instrument that, if enforced, would penalize a beneficiary for filing a pleading in any court.

(d) “Pleading” means a petition, complaint, cross-complaint, objection, answer, response, or claim.

(e) “Protected instrument” means all of the following instruments:

(1) The instrument that contains the no contest clause.

(2) An instrument that is in existence on the date that the instrument containing the no contest clause is executed and is expressly identified in the no contest clause, either individually or as part of an identifiable class of instruments, as being governed by the no contest clause.

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Section § 21311

This law outlines when a 'no contest' clause can be enforced. A 'no contest' clause prevents legal challenges against a will or trust unless certain conditions are met.

Firstly, it applies if someone directly contests the will or trust without having a reasonable basis to believe they'll succeed (no probable cause).

Secondly, it applies if someone challenges a property transfer by claiming the person transferring the property didn't really own it, but only if the no contest clause specifically mentions such challenges.

Lastly, it applies to creditor claims if the no contest clause specifically includes them. Probable cause means a reasonable person would believe there's a fair chance the contest would succeed, based on known facts and further investigation.

(a) A no contest clause shall only be enforced against the following types of contests:

(1) A direct contest that is brought without probable cause.

(2) A pleading to challenge a transfer of property on the grounds that it was not the transferor’s property at the time of the transfer. A no contest clause shall only be enforced under this paragraph if the no contest clause expressly provides for that application.

(3) The filing of a creditor’s claim or prosecution of an action based on it. A no contest clause shall only be enforced under this paragraph if the no contest clause expressly provides for that application.

(b) For the purposes of this section, probable cause exists if, at the time of filing a contest, the facts known to the contestant would cause a reasonable person to believe that there is a reasonable likelihood that the requested relief will be granted after an opportunity for further investigation or discovery.

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Section § 21312

This law says that when figuring out what the person who made a will or trust meant to happen if someone contests it, the no contest clause should be interpreted in a very limited way.

In determining the intent of the transferor, a no contest clause shall be strictly construed.

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Section § 21313

This law section clarifies that it doesn't cover everything about enforcing a no contest clause, which is a provision that penalizes someone for challenging a legal document like a will or trust. If this law section doesn't apply to a specific situation, then the traditional law, known as common law, will be used.

This part is not intended as a complete codification of the law governing enforcement of a no contest clause. The common law governs enforcement of a no contest clause to the extent this part does not apply.

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Section § 21314

This law means that even if a document, like a will or trust, says otherwise, this particular rule still applies.

This part applies notwithstanding a contrary provision in the instrument.

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Section § 21315

This law states that any legal document or instrument that can't be changed anymore (irrevocable) and was made irrevocable on or after January 1, 2001, falls under these rules. However, if the document became irrevocable before that date, these rules don't apply.

(a) This part applies to any instrument, whenever executed, that became irrevocable on or after January 1, 2001.

(b) This part does not apply to an instrument that became irrevocable before January 1, 2001.

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