When an In Terrorem Hits the InterstateWhen an In Terrorem Hits the Interstate

In terrorem, or no-contest, clauses in estate-planning instruments have been the subject of much discussion and debate, including in this publication. Because such clauses carry with them the threat of forfeiture, and because equity abhors a forfeiture, in terrorem clauses also have caught the attention of legislative bodies. An article in the November 2020 issue of this journal canvasses the differing approaches taken by states to the enforcement of in terrorem clauses, including the public policies that animate those differences.¹ We’ll discuss a corollary issue: the enforcement of in terrorem clauses across state lines and, in particular, across states whose public policies toward such clauses differ. 

Imagine a revocable trust settled...