In Wisconsin, “no contest” clauses (in terrorem clauses) are not automatically enforceable to disinherit a beneficiary who brings a challenge in good faith. The governing statute, Wisconsin Statutes § 854.19, provides a probable cause exception: if the beneficiary had a reasonable basis in fact and law to bring the action, the clause will not be enforced and the beneficiary will not forfeit their inheritance.
The key limitation is the probable cause standard. A no‑contest clause may be enforced only when a beneficiary challenges without probable cause and the clause clearly states the penalty. By contrast, when a beneficiary has probable cause, common grounds such as lack of testamentary capacity, undue influence, fraud, or improper execution can be litigated without triggering forfeiture under a no‑contest clause, even if the challenge ultimately fails.
Depending on the wording, a no‑contest clause can be drafted broadly enough to be triggered by various actions such as contesting the validity of a will or trust, objecting to probate, challenging fiduciary actions, or even filing certain claims against the estate. However, Wisconsin courts interpret such clauses narrowly in light of the statutory probable‑cause protection. As a matter of public policy, Wisconsin aims to preserve access to justice in probate disputes and to avoid discouraging legitimate challenges; the focus is on preventing frivolous litigation, not all litigation. In practice, no‑contest clauses function more as deterrents to baseless actions than as automatic disinheritance provisions, and courts closely examine whether the challenger had probable cause.
In summary, Wisconsin enforces no‑contest clauses only against beneficiaries who bring challenges without probable cause. If a beneficiary has a reasonable factual and legal basis for the action, the clause will not be enforced and the beneficiary does not forfeit their inheritance under Wisconsin Statutes § 854.19.
If you would like to discuss this matter more thoroughly, please reach out to our Madison Wisconsin Estate Planning attorneys. We are here to help!