- in terrorem clause
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(in te-ror-em) Latin meaning "in fear." This phrase is used to describe provisions in contracts or wills meant to scare a person into complying with the terms of the agreement. For example, a will might state that an heir will forfeit an inheritance if the heir challenges the validity of the will. Of course, if the will is challenged and found to be invalid, then the clause itself is also invalid, and the heir takes whatever he or she would have inherited if there were no will. Also called a terrorem clause or a no-contest clause.Category: Business, LLCs & Corporations → Business Accounting, Bookkeeping & FinancesCategory: Business Cash Flow Problems & BankruptcyCategory: Business, LLCs & Corporations → Business Tax & DeductionsCategory: Personal Finance & Retirement → Taxes → Tax AuditsCategory: Wills, Trusts & Estates → Estates, Executors & Probate CourtCategory: Wills, Trusts & Estates → Wills
Nolo’s Plain-English Law Dictionary. Gerald N. Hill, Kathleen Thompson Hill. 2009.
- in terrorem clause
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n. A provision in a contract or will that warns a beneficiary or party not to engage in certain behavior, by providing a prospective penalty for such behavior.
Webster's New World Law Dictionary. Susan Ellis Wild. 2000.
- in terrorem clause
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[in tehr-roar-em]n.from Latin for "in fear," a provision in a will which threatens that if anyone challenges the legality of the will or any part of it, then that person will be cut off or given only a dollar, instead of getting the full gift provided in the will. The clause is intended to discourage beneficiaries from causing a legal ruckus after the will writer is gone. However, if the will is challenged and found to be invalid (due to lack of mental capacity, undue influence or failure to have it properly executed), then such a clause also fails. So a prospective challenger takes his/her chances. The courts have ruled that merely putting in a claim for moneys due from the estate is not a legal challenge to the will itself and is permissible without losing the gift.
Law dictionary. EdwART. 2013.