The document discusses secret and half secret trusts. A secret trust occurs when a testator leaves property to someone in their will who has privately agreed to hold the property in trust for a third party beneficiary. The identity of the beneficiary is kept secret. A half secret trust is similar but the existence of the trust is disclosed in the will, though not its terms or beneficiaries. For a secret or half secret trust to be valid there must be intention, communication of the trust terms to the trustee before death, and acceptance by the trustee. English law requires communication for half secret trusts to occur before the will's execution. The basis for enforcing such trusts is to prevent fraud.

1. SECRET TRUST
Full SecretTrust
Half SecretTrust
What is SecretTrust ?
The creator doesn’t wantanyone toknow
aboutit. He will instructthe trustee to
distribute the fundafterhisdeath.
The formalityrequirements underthe English
WillsAct1837, section9 was not complied
with.
S. 9 stated that will have to be made in
writing,and properlysignedand witnessed.
General rule:failure tocomply,if provisionsof
s. 9 is completelyvoidandanytrustswhichit
purportsto create will be invalid.
However a secret or halfsecret trust may take
effect on the death of the testator without
any need to specifythe termsof the trust and
to reveal itsexistence.
Formalitiescan sometimesencourage fraud
EQUITY WILL NOT PERMIT A STATUTE T0 BE
USED AS A CLOAK FOR FRAUD
The doctrine of secretand half secrettrust
have evolvedtopreventthis.
Two reasons why a testator may wish to avoid
formality;
1) He maywishthe identityof the
beneficiarytoremainsecret.
2) He maysimply nothave made up his
mindat the time of makingthe will
relatingdetailsof all the dispositions
Methodsof AvoidingFormalities
1) A can leave propertybywill toB,(complies
withthe provisionof the Act) buthavingcome
to an (unwritten)understanding thatB is
merelytrustee of itinfavourof C - FullySecret
Trust
2) A can leave propertybya validwill ‘toBon
trust’,but where the beneficialinterestunder
the trust (forexample,infavourof C) is
undeclared.- HalfSecretTrust
FullySecret Trust
A testatorbequethspropertytoaspecified
personinhiswill whohasagreedthat he will
holdthe propertylefttohimon trust fora
thirdparty.
[Eg: A wantedtoleave some property
to C secretly. Leave the propertyinhiswill to
B, wherebyBagreedthatC will receive the
propertyonthe deathof A.]
Fact of the trust andidentityof the beneficiary
are notrevealed.
Blackwell v Blackwell (1929) AC 318
H: The necessaryelements...are intention,
communicationand acquiscence.”
LeadingAuthority:
HOL in McCormickv Grogan (1869) LR HL 82
The basisof enforcementisfraud. Itwouldbe
fraudulentforBto take beneficially,he will be
requiredtoenforce the trustinfavourof C.
Ottoway v Norman [1972] 2 WLR 50
Mr. Ottowaydevisedsome of hispropertyto
Miss Hodgesforher to use duringherlifetime
providedalwaysthatshe was,inturn,to
bequeaththispropertytothe claimant after
herdeath.She failedtodo soin herwill.
Rather,she leftthe propertybyherown will to
Mr. andMrs. Norman.
AfterHodges’sdeath,the claimantbrought
actionagainstHodges’sexecutorsclaiming
entitlementunderSTto the propertywhich
had beenleftinOttoway’swill.
It was foundthat Miss Hodgeshadknownof
Ottoway’sintentionandhadagreed.
Held:therefore,the propertyshouldpassto
the claimant.

2. It isimmaterial whetherthese elementexist
before orafterthe will of the donor(testator).
Requirements:Fully SecretTrust
a) Intention.
b) Communication
c) Acceptance.
Intention
i) Needtoillustrate sufficientcertaintyof
intention.
ii) Needtoshowthatthe testatorintendedto
subjectthe secrettrustee (primarydonee) toa
mandatoryobligationtoholdpropertyforthe
benefitof secretbeneficiary(secondary
donee).
Communication
1) Communicationof both fact and the terms
of the trust.
2) Communicationof the extentof trust.
3) Communicationmustbe made before the
deathof the testator.
4) Communicationtojointtrustee.
Acceptance
Intendedtrustee acceptedthathe wouldhold
it ontrust.
HALF SECRET TRUST.
[A will leave property toBas secret
trustee andC’s identitywill be concealed.]
1) The existence of the trustisdisclosedbythe
will butnotthe term
2) The testatorindicatesinhiswill thatthe
recipientof the bequestisnotintendedtotake
the propertyabsolutelybutasa trustee.
3) The identityof the ultimatebeneficiary
remainconcealed.
4) The beneficiaryinthe will be seenasa
secrettrustee.
The substance of a halfsecret trust:
A will leavesalegacytoB “to be heldupon
trust as I have declaredtohim.”
Hence:existenceof trustisknownbutNOT the
term.
Requirements:Half Secret Trust
1) Intention.
2) Communication.
1. Communicationmustbe made before
the executionof the will.
2. Evidence will notbe admissible of
communicationinconsistentwiththe
face of the will.
3) Acceptance.
Trustee acceptsthe trusteeship - he isbound
to effectthe trust
Important considerationis the time of the
communicationof the objectsto the trustee
1) Englishdecisionsdenythatthere hadbeena
validcommunicationand acceptance of half
secrettrust If communicationtookplace after
the will.Ie:objectshave notbeeneffectively
specified
Cannotallow testatorto create a validtrust
througha validwill butbypassthe WillsAct
Re Keen[1937] Ch 236
Testatorleft£10,000 to two trustees“tobe
heldupontrustand disposedof themamong
such person,personsorcharitiesasmaybe
notifiedbyme tothemduringmylifetime…”
Priorto this,one of the trustee hadbeengiven
a sealedenvelopewiththe name of intended
beneficiary.
Held: Nota valid trust as the letterwas
inadmissibleandunattested.
Inconsistentwithwill.