Jurisdiction(s):
United Kingdom

Related legal acts

Key definition

Hotchpot definition

What does Hotchpot mean? In legal practice, hotchpot describes bringing earlier receipts into account so that a later distribution is shared fairly among those entitled. In insolvency and bankruptcy (England & Wales, Scotland, Northern Ireland and Ireland), the hotchpot principle prevents a creditor from double or multiple recovery. A creditor who has realised value elsewhere—such as from security or from distributions in a foreign or related proceeding—must give credit for that amount before sharing in dividends, ensuring equality of distribution (pari passu). This is a descriptive expression applied by the courts and reflected in insolvency legislation and rules in each jurisdiction. In succession and trusts, hotchpot...

Hotchpot in Will Drafting: Powers of Appointment, Lifetime Advances and Debt Releases, and Partial Intestacy Rules (England and Wales)

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Practice notes

Including Hotchpot provisions in Wills can help balance what beneficiaries receive, equalising benefits between beneficiaries. The hotchpot rule also applies on a partial Intestacy where death occurred before 1 January 1996; see Partial intestacy below.

The use and purpose of a Hotchpot clause

The testator should be advised about the potential use of a hotchpot clause in three particular situations, namely:

where trust beneficiaries might obtain benefits via a power of appointment over the fund
where advances have been, or are expected to be, made to beneficiaries during the testator’s lifetime by the testator
where the testator forgives debts owed to them

For the first situation, the Will may include a hotchpot provision requiring any class member receiving an appointment to bring that benefit into account, so that they credit that share before they can participate in any unappointed part of the fund.

Where the testator has made, or anticipates making, lifetime advances to particular beneficiaries, they may wish those sums to be brought into account before any legacy or share of the residuary estate is received. Of course, this outcome may not reflect what the testator ultimately intends...

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Web page updated on 21/05/2026

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