No-Contest Clauses in California: What Tony Hsieh’s Will Teaches Us About Protecting Your Wishes
When Zappos co-founder Tony Hsieh passed away in 2020, it was widely believed he didn’t leave behind a will. But a recently discovered document shows that not only did he have a plan—he had some strong opinions about how that plan should be carried out.
One of the most eye-catching parts? A powerful no-contest clause that said if any of his four family members challenged his wishes, none of them would inherit anything.
That might sound dramatic, but in California, these types of clauses can be legal—as long as they’re written the right way.
Let’s break down what a no-contest clause is, how it works, and what you should know if you’re thinking of including one in your estate plan.
What Is a No-Contest Clause?
A no-contest clause is a section in a will or trust that says anyone who fights the plan in court could lose their inheritance. The idea is to reduce the chances of legal battles and make sure your final wishes are carried out peacefully.
In Tony Hsieh’s case, his clause said if even one family member challenged the plan, all four would be disinherited. That’s called a “mutual disinheritance” clause, and while it may sound harsh, it was designed to make sure his surprise gifts and unique plans couldn’t be undone by a legal fight.
Are These Clauses Allowed in California?
Yes—but there are rules.
California has a law that outlines when a no-contest clause can actually be enforced. Here are the basics:
- It applies only in specific situations, like when someone accuses the will or trust of being the result of fraud or pressure, or tries to claim property they’re not entitled to.
- The clause only works if the person who challenges the plan didn’t have a good reason (called “probable cause”) for doing so. If someone brings a challenge because they genuinely believe something was wrong—and they have some evidence to support it—they usually won’t be punished, even if their case doesn’t win.
So, in short: a no-contest clause can work, but only if it’s clear, specific, and used properly.
Can You Disinherit Everyone If Just One Person Contests?
Surprisingly, yes—but only if the clause is written very clearly.
California courts have allowed this in the past. For example, in cases like Estate of Leonetti and Estate of Katleman, judges supported no-contest clauses that said a whole group of people could be disinherited if even one of them challenged the plan. But they made one thing very clear: the person writing the will or trust must spell it out carefully.
If it’s too vague or confusing, the clause won’t hold up—and might even cause the kind of legal fight it was meant to prevent.
What This Means for Your Estate Plan
No-contest clauses aren’t for everyone, but they can be a useful tool if:
- You want to reduce the risk of family disputes
- You’re leaving uneven gifts or surprises that could cause tension
- You want to make sure your wishes are followed without drama
Here are three things to keep in mind:
- Be Clear. If you want to include a no-contest clause, it needs to be worded carefully so that everyone understands the consequences.
- Follow the Rules. California law sets specific limits on when these clauses can be enforced.
- Work with a Pro. This isn’t something you want to DIY. A well-meaning but poorly written clause can backfire.
At Kaminski Law Group, we help families create estate plans that protect their wishes and avoid unnecessary conflict. Whether your plan includes surprise gifts or simply peace of mind, we’re here to help you get it right.
Want to learn if a no-contest clause makes sense for your plan?
Let’s talk. Reach out at hello@californiatrusts.law or visit www.californiatrusts.law to schedule a consultation.
