In the 1994 no-budget Mexican horror flick Herencia Diabólica (a.k.a. Diabolical Inheritance), an evil clown doll known as Payasito terrorizes a family with knives, teleportation, and the power to induce erotic fantasies...starring him.
In this trashy gem from director Alfredo Salazar, an old woman dies, and her son inherits her home and creepy clown moppet. Her grandson takes a shining to Payasito, but the evil toy isn't fond of his new family. Using Mexican demon clown black magic, he pushes the son's wife down the stairs.
...but she's not missed for very long because the father next marries his sexy secretary. Mom Numero Dos is in for an even worse fate than a tumble down the stairs. Payasito invades her dreams, Freddy Krueger-style. But instead of murdering her, the lil' guy uses his powers of cop a feel. Of course, he tries to filet her after getting to second base.
I haven't seen Herencia Diabólica in full, but I doubt it would be as scary if it wasn't filmed in an afternoon on a half-functional camcorder. Its godawful production values give it the ambiance of a misplaced snuff film that you'd find left in a yard sale video camera.
Hat tip to Vera!