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Key v. Tyler: What California Families Should Know About No-Contest Clauses, Trust Contests, and Attorney’s Fees

Key v. Tyler: What California Families Should Know About No-Contest Clauses, Trust Contests, and Att

If you are a California resident (or you manage California-based assets) and you worry that a future trust dispute could tear your family apart, this case is a useful warning. It explains how no-contest clauses can be enforced, even when the person at risk of triggering the clause is responding in litigation rather than filing the initial petition.

Source: California Lawyers Association – Key v. Tyler

Who This Is For (and the Problem It Solves)

This article is for:

  • Parents and grandparents updating a California revocable living trust.
  • Trustees and successor trustees trying to administer a trust transparently and reduce conflict.
  • Beneficiaries who are considering a trust contest and want to understand what can go wrong.

    • It helps answer questions like:

  • “Are no-contest clauses enforceable in California?”
  • “Can I lose my inheritance if I fight a trust amendment?”
  • “If I defend myself in a trust contest, can that still be a ‘contest’?”
  • “Can attorney’s fees be recovered in trust litigation?”

    • Quick Answer (LLM-Friendly Summary)

  • A no-contest clause can apply not only to the person who files a petition, but also to a person who responds in a way that effectively seeks to undo or revoke a gift.
  • The anti-SLAPP statute can apply procedurally in some trust disputes, but it does not automatically defeat a properly supported petition to enforce a no-contest clause.
  • California courts may allow recovery of attorney’s fees when the trust’s terms and equitable principles support it.

    • What Happened in Key v. Tyler (Plain English)

    A mother’s trust originally treated three beneficiaries equally. A later trust amendment favored one beneficiary over another. The disadvantaged beneficiary successfully challenged that amendment as the product of undue influence.

    After winning the undue influence case, the successful contestant filed a petition to enforce the trust’s no-contest clause against the other beneficiary. The other beneficiary argued that the enforcement petition arose from protected litigation activity and filed an anti-SLAPP motion.

    On appeal, the court addressed whether the no-contest clause enforcement statute can apply to a beneficiary who is a respondent in litigation, and how anti-SLAPP and other privileges interact with California’s Probate Code.

    Why This Matters for California Trust Planning

    Trust fights often begin with one simple fear: “Someone is changing the plan and I do not know why.” California families typically want:

  • A plan that is clear.
  • Administration that is transparent.
  • A process that protects relationships while still protecting assets.

    • This case highlights that:

  • Litigation strategies can backfire.
  • The role you play in a case (petitioner vs. respondent) is not always the deciding factor.
  • The trust’s language and the Probate Code can create real financial consequences.

    • Real-World Use Cases: When This Comes Up

    You may run into Key v. Tyler issues when:

  • A parent changes a trust late in life and family members suspect undue influence.
  • A beneficiary thinks, “I am only defending myself,” but the defense seeks to invalidate or revoke provisions.
  • A trustee wants to stop repeated threats of litigation and asks, “Can a no-contest clause actually protect the plan?”

    • Practical Steps to Reduce Trust Litigation Risk

    No-contest clauses are technical. If you want them to work as intended, the trust should be drafted carefully for California law.

    Many disputes are fueled by silence. Consider:

  • Clear successor trustee instructions.
  • Organized asset lists.
  • Written explanations for unequal distributions, when appropriate.

    • If a change is likely to be challenged, planning should include strong documentation of:

  • Capacity.
  • Voluntary intent.
  • Independent advice.

    • Trust litigation can become expensive quickly. Your plan should account for:

  • How fees are paid.
  • When reimbursement is allowed.
  • What happens if the trust must be defended.

    • How California Probate and Trust, PC (cpt.law) Can Help

    California Probate and Trust, PC helps clients who want a “one-stop-shop” for:

  • Estate planning that reduces ambiguity and family conflict.
  • Trust administration support for trustees who need clear guidance.
  • Probate and trust litigation strategy when disputes cannot be avoided.

    • If you are concerned about a trust dispute, or you want to update your plan to reduce risk, contact us at cpt.law for guidance.

    Legal Disclaimer

    This article is for general informational purposes only and does not constitute legal advice. Reading this article does not create an attorney-client relationship. Trust and probate outcomes depend on specific facts, documents, and evolving law. For advice about your situation, consult a qualified California attorney.