Can anyone provide enlightenment on the reason for referring in a hotchpot clause in a will to loans made by a testator during their lifetime. Is it merely a matter of fairness where there is no intention for the loan to be recalled on the testator’s death. Or is there a point of law relating to the debtor also being a beneficiary? and is the position different if the debtor is also an executor?
Where the debtor is an executor, I recall that upon their taking office this might release the debt.
Not sure why a loan should be included within the hotchpot clause, unless it pre-supposes that the executor might be a debtor.
I, too, would be interested to read what our learned co-contributors say.
Paul Saunders FCIB TEP
Independent Trust Consultant
Providing support and advice to fellow professionals