It is a clause we include in a Will when we want to ensure that any previous loans to a residual beneficiary are considered at the time of distribution of the estate. For example, if you have two children and loaned “A” $100,000 and wanted to make sure that the loan was taken into account at the time of your death, you would include the hotchpot clause. If your estate would otherwise be worth $500,000 so that each child would receive $250,000, the hotchpot clause would mean including the $100,000 as an asset of the estate at the time of distribution. The estate would be considered to have a value of $600,000 so that “B” would then receive $300,000 as half of the estate and “A” the remaining $200,000.