Penalty clause for contest.

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A provision in a governing instrument purporting to penalize an interested person for contesting the governing instrument or instituting other proceedings relating to the estate is unenforceable if probable cause exists for instituting proceedings.

History: 1978 Comp., § 45-2-517, enacted by Laws 1995, ch. 210, § 13; 2016, ch. 69, § 710.

ANNOTATIONS

The 2016 amendment, effective July 1, 2016, after "contesting", deleted "a" and added "the", and after "proceedings relating to", deleted "a governing instrument or an" and added "the".

Application of section. — This section contemplates, for its application, the institution of a proceeding relating to a will. Redman-Tafoya v. Armijo, 2006-NMCA-011, 138 N.M. 836, 126 P.3d 1200.

Construction of no-contest clauses. — No-contest clauses in wills are, generally, strictly construed. Redman-Tafoya v. Armijo, 2006-NMCA-011, 138 N.M. 836, 126 P.3d 1200.


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