Q: Does the no-contest clause in my grandparent's trust protect me from an uncooperative beneficiary?
I am successor trustee for my late grandparents' estate, and there are 3 beneficiaries standing to gain an equal third share; myself, my father, and my aunt. I am putting my grandparents' house up for sale as per their living trust and will, but I haven't had my realtor list it on the open market yet. We have already received a cash offer with no contingencies for 10% above asking price. Each beneficiary will gain a considerable amount of money from this sale. I have done my homework for this.
My father has been incredibly uncooperative and antagonistic against me due to mental illness from prolonged drug use. I know he isn't in a position to dictate terms, yet he insists he's not going along with the sale. If he got money he says he would hire his own lawyer against me.
There is a no-contest clause in the trust that would revoke the share if anyone seeks "to invalidate any of the Will or Trust". If he got a lawyer and filed something against me, he would lose his share, right?
A: Under California law, a no-contest clause is enforceable against a direct contest brought without probable cause. If your father seeks to invalidate any provisions of the trust without probable cause, he could be at risk of forfeiting his share due to the no-contest clause. However, the specific applicability and consequences of the no-contest clause depend on its exact wording and the nature of the actions taken, so it's important to consult with an attorney to evaluate the situation fully.
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