What does 'charged in exoneration' mean in a Will

Trusts Discussion
1

Good afternoon All.

There is a Will dated 1987 from a client and it says the following:

’ I GIVE AND BEQUEATH to my said son X absolutely all that my share and interest in the partnership business known as X PROVIDED ALWAYS that the bequest hereinbefore contained is subject to and charged in exoneration of the rest of my estate with the payment of all taxes and duties (in particular and without prejudice to the generality of the foregoing Inheritance Tax) payable thereon as a result of the death.

I just wanted to know what ‘charged in exoneration means’? Is it similar to a hotchpotch clause?

Thank you for your assistance.

Francesca.

2

Hi Francesca,

I’ve not seen that wording before, but on strict reading I think it’s trying to say that any tax that is due as a result of that gift is ‘charged’ to that gift only, and not to the rest of the estate (exoneration).

As to it’s effictiveness…I’ll leave that to greater minds…:blush:

Kam

1 Like
3

Thank you, Kam.

I am grateful.

Francesca.