What is the primary purpose of a penalty clause in a will?

The primary purpose of a penalty clause in a will is to discourage individuals from contesting the will by imposing a penalty on anyone who does so. This mechanism serves as a deterrent, operating under the assumption that the prospect of a financial penalty may dissuade heirs or beneficiaries from initiating legal challenges to the validity of the will. By incorporating such a clause, the testator aims to create a more stable environment for the distribution of their estate according to their wishes without being disrupted by potential disputes.

In contrast, encouraging compliance with the will's terms involves a broader scope, which may not solely hinge on penalties. Legally binding heirs to the will is achieved through the will’s general provisions and legal requirements, rather than through a specific penalty clause. Furthermore, while the financial aspects of legal costs can be relevant in estate matters, they do not specifically align with the core intent of a penalty clause, which primarily targets contestation rather than the payment of fees.