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How can you use an in terrorem clause in Maryland?

On Behalf of | Feb 2, 2025 | Wills |

When drafting your will or trust in Maryland, an in terrorem clause can help prevent disputes over your estate. This provision, also known as a no-contest clause, states that beneficiaries who challenge the document’s validity will lose their inheritance.

Maryland courts generally respect these clauses but apply specific standards when evaluating them. Your clause must be clearly written and unambiguous to be effective, as courts interpret any unclear language in favor of the beneficiary.

Understanding Maryland’s probable cause exception

Maryland follows the “probable cause” standard for in terrorem clauses, which provides important protections for beneficiaries. This standard means your beneficiaries can still challenge the will or trust without risking their inheritance if they have reasonable grounds to believe issues like fraud or undue influence exist. The courts examine each situation carefully, looking at evidence that might suggest improper influence, lack of mental capacity or other legitimate concerns that would constitute probable cause. This balanced approach helps prevent the clause from being used to hide wrongdoing while still maintaining its power to deter frivolous challenges.

Key considerations for your estate plan

When incorporating an in terrorem clause in your Maryland estate documents, several factors deserve careful attention. These elements will affect how well your clause holds up under legal scrutiny and how effectively it serves your intentions:

  • Define specifically what actions constitute a “contest” that triggers the clause, such as filing a lawsuit questioning validity, challenging executor appointments or disputing asset distributions.
  • Consider including partial forfeiture options instead of complete disinheritance, like requiring contestants to cover legal expenses if they lose their challenge.
  • Recognize that beneficiaries retain the right to ask questions about estate administration without triggering the clause, including requesting accountings or clarification of terms.
  • Document your mental capacity and free will when creating the estate plan through medical evaluations and witnessed signatures to strengthen the clause’s effectiveness.
  • Consider including explicit exceptions for challenges based on probable cause to align with Maryland law.

Given the nuanced application of in terrorem clauses in Maryland and their potential impact on your estate distribution, it is important to seek skilled legal guidance when incorporating these provisions into your estate planning documents.