The following Wills & Probate guidance note provides comprehensive and up to date legal information covering:
Hotchpot clauses in Wills can be very useful in equalising benefits between beneficiaries. They also have a place in respect of a partial intestacy. Although their effect will not be felt until death, an understanding of their purpose is necessary in order to advise a testator adequately.
The testator should be advised in respect of a clause in three particular instances:
where beneficiaries of a trust may receive benefits under a power of appointment
where advances have been made (or there is an expectation that they may be made) to beneficiaries in the testator's lifetime
where the testator releases debts
In respect of the first scenario above, a hotchpot clause would be inserted in the Will to ensure that any member of a class who is the recipient of an appointment credits that share so appointed before they share in the unappointed part of the fund to which the appointment relates.
In circumstances where the testator has made or expects to make advances in their lifetime to certain beneficiaries, they may wish that those beneficiaries bring those advances into account before they receive their legacy or share of the residuary estate. Of course, this result may not be what the testator requires and in such a circumstance they may well want to make it
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