Hotchpot
4/6/19 Hotchpot
A necessary mixing of property in an estate in order to effect an equal or proportionate division.
Putting assets into a hotchpot might be necessary where a beneficiary may need to compensate for property or a loan advanced to him by the testator while the testator was still alive.
A hotchpot clause addresses this possibility and either requires the beneficiary to account and compensate other beneficiaries by the value of his advancement before distribution of the estate occurs or, to prevent hotchpotting, a testator may provide:
“No gift of money or property made by me and no obligation entered into by me to or for the benefit of “…” is to revoke any gift to him in this Will nor is it to be compensated for by way of hotchpot.”
