A Wipeout Clause covers a scenario whereby none of your beneficiaries or their alternates are still alive when you pass away. This situation could occur if you and your immediate family were to perish in a house fire or car accident.In this instance, the government can treat your estate as if you didn't leave a Last Will, which is also known as dying intestate. If this occurs, the government may disperse your estate in a manner you would not have approved of when you were alive.Use of a Wipeout Clause lets you name one or more "wipeout beneficiaries" who would inherit your estate in a scenario like the one described above.