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Key v. Tyler: What California Families Need to Know About No-Contest Clauses in Trust Documents

Key v. Tyler: What California Families Need to Know About No-Contest Clauses in Trust Documents

If you’re a California resident managing family trust matters or concerned about protecting your estate from costly disputes, understanding how no-contest clauses work is critical. The appellate case Key v. Tyler clarifies when defending against a trust contest can trigger forfeiture—even if you didn’t initiate the legal challenge.

Who This Article Is For

This legal analysis is designed for:

  • California residents creating or updating trust documents
  • Beneficiaries navigating trust disputes or amendments
  • Families concerned about undue influence claims
  • Anyone seeking to protect their legacy from prolonged litigation

    • What Happened in Key v. Tyler?

    Sarah Key, Elizabeth Tyler, and Jennifer Potz were originally equal beneficiaries under their mother’s trust. In 2007, the trust was amended to favor Tyler. Key challenged this amendment, alleging undue influence, and won—both at trial and on appeal.

    Following her victory, Key filed a petition to enforce the trust’s no-contest clause against Tyler and sought attorney’s fees. Tyler responded with an anti-SLAPP motion, arguing that her defense of the trust contest was protected litigation and should not be considered a “direct contest” under California law.

    The Court’s Ruling: Why It Matters for Your Trust

    The appellate court reversed the trial court’s decision and held that:

  • Defending a trust contest can trigger a no-contest clause. Even though Tyler was the respondent (not the person who initiated the lawsuit), her defense effectively sought to preserve the 2007 amendment—which meant she was contesting the original trust instrument.
  • No-contest clauses apply to responses and objections, not just petitions. California’s no-contest-clause-enforcement statute covers defensive actions that challenge trust provisions.
  • The litigation privilege does not override no-contest enforcement. The court emphasized that California’s Probate Code—specifically designed for trust contests—takes precedence over the more general litigation privilege found in the Civil Code.
  • Attorney’s fees can be recovered under both contractual and equitable theories. Key was entitled to fees based on trust language and principles of fairness.

    • How Can This Case Affect Your Family’s Trust Planning?

    If you’re creating or revising a trust in California, here’s what you need to know:

  • Include clear no-contest language. A well-drafted no-contest clause can deter frivolous challenges and protect your estate from depletion through legal fees.
  • Understand that amendments matter. If you amend your trust, the amendment and the original instrument are both subject to enforcement provisions—even if only one document contains a no-contest clause.
  • Anticipate disputes before they arise. Families dealing with undue influence concerns, blended families, or unequal distributions should work with an experienced estate planning attorney to build protective measures into their documents.
  • Know your rights as a beneficiary. If you’re named in a trust and considering challenging an amendment, consult legal counsel immediately. Defending your position could result in forfeiture of your inheritance.

    • Real-World Application: When Should You Enforce a No-Contest Clause?

    No-contest clauses are particularly useful for California families in situations like:

  • Blended families where children from prior marriages may contest new provisions
  • Estates with unequal distributions among siblings
  • Trusts vulnerable to undue influence claims due to caregiver relationships
  • High-value estates where litigation costs could significantly erode inheritance

    • Case Citation and Legal Authority

  • Case Name: Key v. Tyler
  • Citation: B283979
  • Filed: April 19, 2019
  • Court: Second District, Division Two

    • Read the full opinion: Second District Opinion PDF

    Source: California Lawyers Association – Key v. Tyler

    Protect Your Family’s Legacy with Experienced California Trust Counsel

    At California Probate and Trust, PC, we help California residents create comprehensive estate plans that protect against costly disputes, undue influence claims, and family conflicts. Whether you’re drafting your first trust, updating an outdated plan, or navigating a trust contest, our compassionate attorneys provide transparent guidance tailored to your family’s unique needs.

    Schedule your FREE estate planning consultation today:

  • Call (866) 674-1130
  • Visit cpt.law
  • Offices in Fair Oaks, Sacramento, and San Francisco

    • Legal Disclaimer

    This article is provided for informational purposes only and does not constitute legal advice. The information presented is based on California law as of the publication date and may be subject to change. Each trust and estate matter involves unique facts and circumstances. You should consult with a qualified California estate planning attorney before making any legal decisions regarding your trust, will, or estate plan. Nothing in this article creates an attorney-client relationship between the reader and California Probate and Trust, PC.