Usually means: Clause deterring challenges to will.
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We found 6 dictionaries that define the word in terrorem clause:

General (3 matching dictionaries)
  1. in terrorem clause: Wiktionary
  2. in terrorem clause: Infoplease Dictionary
  3. in terrorem clause: Dictionary.com

Business (3 matching dictionaries)
  1. in terrorem clause: Law.com Dictionary
  2. Everybody's Legal Dictionary (No longer online)
  3. in terrorem clause: Legal dictionary

Definitions from Wiktionary (in terrorem clause)

noun:  (law) A provision in a will that disinherits any beneficiary who raises a challenge against the will.

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