This one condition in Ratan Tata's 'last will' can stop beneficiaries from getting even a single penny

Tata Group's late Chairman Emeritus Ratan Tata’s will reflects his lifelong dedication to philanthropy and social welfare, with the majority of his assets directed toward charitable causes. His shares in Tata Sons and other properties have been bequeathed to the Ratan Tata Endowment Foundation and the Ratan Tata Endowment Trust, ensuring that his legacy of giving back to society continues, The Economic Times reported.

Personal beneficiaries include his half-sisters, Shireen and Deanna Jejeebhoy, who inherit one-third of his financial assets, valued at approximately Rs 800 crore. Mohini Mohan Dutta, a long-time associate, receives another one-third, while his brother Jimmy Naval Tata is allocated a portion of the Juhu bungalow. Close friend Mehli Mistry inherits the Alibaug property and three firearms.

Demonstrating his affection for animals, Tata established a Rs 12 lakh fund for the care of his pets. Additionally, he forgave loans for individuals like Shantanu Naidu, his assistant, and Jake Malight, a neighbour. His foreign assets, valued at Rs 40 crore, include land in Seychelles and shares in various companies. The will also includes a "no-contest clause," ensuring that any challenge to its provisions results in forfeiture of inheritance.

ToI has reported that Ratan Tata's will, however, includes a "no-contest" clause stating that any beneficiary who challenges the will forfeits their inheritance.

What is no-contest clause?

A no-contest clause, also known as an "in terrorem" clause, is a provision included in a will or trust that stipulates that any beneficiary who challenges the validity of the document will forfeit their inheritance. This clause serves as a deterrent against disputes among heirs, aiming to ensure that the wishes of the deceased are honored without lengthy legal battles. If a beneficiary contests the will and loses, they lose any claim to the assets they would have received.