slides secret trust

8/18/2019 Slides Secret Trust

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WHAT IS SECRET TRUST?WHY?

• an arrangement between a testator and a trustee to benefit a person

without having to specify that person in a will

• made to come into force after death as he will instruct the trustee to

distribute the trust after his death

• that aims to benefit a person without having been written in a formal

will

• the testator wish the identity of the beneficiary to remain secret

• he may simply not have made up his mind at the time of making the

will relating details of all the dispositions


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HOW SECRET TRUST WORKS?• secret trusts do not comply with the formality

re$uirements (such as witnessing) laid down in the

Wills Act 1837

• section 9 of the Wills Act 1837 stated that will have

to be made in writing, and properly signed and

witnessed

• its purpose is to prevent fraud


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• %f provisions of section & are not complied with, the will

is completely void and any trusts which it purports to

create will be invalid

• 'owever a secret or half secret trust may take effect on

the death of the testator without any need to specify the

terms of the trust to reveal its existence

• ormalities can sometimes encourage fraud

"E!T# W$$ %&T 'ET A STAT!TE T* +E

!SE, AS A -$&A. F& FA!,"

• he doctrine of secret and half secret trust have evolved

to prevent this


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he most important difference lies in

co//unication of the trust

Half-secret trust : he terms must be communicated

to the trustee before the execution of the will

Full secret trust : he terms may be communicatedafter the execution of the will, as long as this is before

the testator!s death

DIFFERENCE BETWEEN FULLSECRET TRUST & HALF SECRET

TRUST?


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Half Secret Trust

Te testat!r "#$"cates "# "s %"ll tat te rec""e#t!f te 'e(uest "s #!t "#te#$e$ t! ta)e te r!ert*

a's!lutel* 'ut as a trustee

Te "$e#t"t* !f te ult"+ate 'e#e,c"ar* re+a"#c!#ceale$

Te 'e#e,c"ar* "# te %"ll 'e see# as a secrettrustee

-


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Re(u"re+e#ts. /0 I#te#t"!#

10 C!++u#"cat"!# 20 Acceta#ce

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8/23

Clause /4 5 left P!rt D"c)s!# !l"$a* 6"lla t! 7ar) 8f!r te ur!se I %"ll c!++u#"cate t! "+9

E6"$e#ce :; e#f!rcea'le : !ralrecat!r* %!r$s "s#!t su@c"e#t0

RE SNOWDEN /3 All ER /31

te $ecease$ left r!ert* t! er 'r!ter "# te !etat e %!ul$ $! %"t "t %at e t!ut se %!ul$a6e %a#te$0 T"s %as el$ #!t t! 'e su@c"e#t t!

"6e a clear "#$"cat"!# !f "#te#t"!# t! set u a trust0

/G INTENTION: FULFILLED 5 7ENTIONED IN THE WILL


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C!++u#"cat"!# 5 +a$e 'ef!re te e=ecut"!#!f te %"ll e6"$e#ce %"ll #!t 'e a$+"ss"'le "fc!++u#"cat"!# "#c!#s"ste#t %"t te face !fte %"ll

RE KEEN

Testat!r left /4444 t! t%! trustees >t! 'e el$ u!# trusta#$ $"s!se$ !f te+ a+!# suc ers!# ers!#s !rcar"t"es as +a* 'e #!t",e$ '* +e t! te+ $ur"# +*l"fet"+e

Pr"!r t! t"s !#e !f te trustee a$ 'ee# "6e# a seale$

e#6el!e %"t te #a+e !f "#te#$e$ 'e#e,c"ar* Ct. N!t a 6al"$ trust as te letter %as "#a$+"ss"'le a#$u#atteste$

I#c!#s"ste#t %"t %"ll


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THE LETTER WRITTEN

BY 7ARK 1G CO77UNICATION >A %ee) later e %r!te '* re"stere$ !st t!7ar) $"rect"# "+ t! !l$ te 6"lla !# trust f!r

Ce#9s !#l* $auter Y"# %! "s / *ears!l$

ISSUE OF INCONSISTENT WITH THE WILL?

No issue BUT “A week later” -> AFTERWILL EXECUTED

CO77UNICATION: NOT FULFILLED

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11/23

Ce# :; 7ar) :; Y"# 6"llaJ

2G ACCEPTANCE 5 FULFILLED . 7ARKCALLED CHEN & ACKNOWLEDE

ACCEPTANCE OF LETTER

WALLGRAVE V TEBBS .ACCEPTANCE TO CARRY OUT THESECRET TRUST 7AY BE EMPRESS ORI7PLIED


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CONCLUSION . Te alf:secret

trust "s #!t 6al"$ 1#$ ele+e#t #!t ful,lle$ 5 c!++u#"cat"!# !#l*after te e=ecut"!# !f %"ll

Eect . Secret trust fa"ls 5 te 6"lla re6ert 'ac) t!Ce#9s estate !# result"# trust : L"ll* +"t 'ee#t"tle$ t! te 6"lla u#$er rules !f "#testac* asCe#9s %"fe0

Re Boyce . Te secret trustee %!ul$ 'e re(u"re$t! !l$ te r!ert* !# result"# trust f!r tesettl!rs9 res"$uar* estate


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1G Weter te secret trust !l$'* a+es f!r te 'e#e,t !f 7s Ye#a#$ er $auter %as 6al"$?

Full secret trust.

/0 A testat!r 'e(uets r!ert* t! asec",e$ ers!# "# "s %"ll %! asaree$ tat e %"ll !l$ te r!ert*left t! "+ !# trust f!r a t"r$ art*0

10 Fact !f te trust a#$ "$e#t"t* !f te'e#e,c"ar* are #!t re6eale$0

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Blac)%ell 6 Blac)%ell

/1G AC 2/ D"cta !f "sc!u#t Su+#er. > Te #ecessar* ele+e#ts0 0 0 are

"#te#t"!# c!++u#"cat"!# a#$ac(u"sce#ce0 Te testat!r "#te#$s "sa's!lute "ft t! 'e e+l!*e$ as e a#$#!t as te $!#ee $es"resQ e tells te

r!!se$ $!#ee !f "s "#te#t"!# a#$ e"ter '* e=ress r!+"se !r '* tac"tr!+"se %"c "s s"#",e$ '*ac(u"sce#ce te r!!se$ $!#ee

e#c!uraes "+ t! 'e(ueat te +!#e*/


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Re(u"re+e#ts. /0 I#te#t"!#

10 C!++u#"cat"!# 20 Acceta#ce

/


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I#te#t"!# "G Nee$ t! "llustrate su@c"e#t certa"#t* !f "#te#t"!#0""G Nee$ t! s!% tat te testat!r "#te#$e$ t! su'ect tesecret trustee r"+ar* $!#eeG t! a +a#$at!r* !'l"at"!#

t! !l$ r!ert* f!r te 'e#e,t !f secret 'e#e,c"ar*sec!#$ar* $!#eeG0

Case. Ott!%a* 6 N!r+a#

Br"t+a# el$ !# te facts !f te case tat a secrettrust $e6"se al"e$ t! te testat!r9s 'u#al!% fur#"ture,=tures a#$ ,tt"#s 'ut #!t t! +!#e* $e6"se$ t! tetestat!r9s !use)eeer s"#ce tere %as "#su@c"e#te6"$e#ce !f te testat!r9s "#te#t"!# tat se %as #!t t!

)ee te +!#e*

/-


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It as 'ee# su++ar"se$. T"s re(u"re+e#t "s #! $"ere#t fr!+ te re(u"re+e#t tatc!#6e#t"!#al e=ress trust +ust $e+!strate su@c"e#t“certait! o" itetio” t! create a trust0 It +ust 'e s!%#tat te testat!r "#te#$e$ t! su'ect te secret trustee t! a

+a#$at!r* !'l"at"!# t! !l$ te r!ert* f!r te 'e#e,t !f tesecret 'e#e,c"ar*0 A# "#te#t"!# t! "+!se a urel* +!ral!'l"at"!# "s "#su@c"e#t

Al"cat"!#. Ce# "#6"te$ a+es t! $"##er a#$ $el"6ere$ te !rta'lest!rae $e6"ce t! "+0 O# t! !f tat Ce# eectuate "s"#te#t"!# '* lac"# te c!$e !f te $e6"ce t! "s la%*ers a#$"#f!r+ a+es !# t"s0 Tus tere "s a str!# "#te#t"!# tat ca#'e "#fer fr!+ Ce# t! a6e te trust t! 'e 6al"$0

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C!++u#"cat"!# Pr"#c"le./0 C!++u#"cat"!# ca# 'e eecte$ at a#* t"+e $ur"# te

l"fe !f te testat!r e"ter 'ef!re !r after te e=ecut"!#

!f te %"ll 7!ss 6 C!!erG10 E(uall* eect"6e "f te testat!r %ere t! a#$ t! te

trustee a seale$ e#6el!e c!#ta"#"# te ter+ !f tetrust a#$ "#structe$ te trustee #!t t! !e# te sa+eu#t"l after te $eat !f te testat!r0Re Kee#G

20 Te c!++u#"cat"!# +ust "$e#t"f* te r!ert* t! 'eel$ !# trust a#$ te "$e#t"t* !f te secret 'e#e,c"ar*!r te +ea#s t! $"sc!6er te sa+e Re B!*esG

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Al"cat"!#. Tere "s a 6al"$ full secret trust 'ecause Ce# ass te!rta'le st!rae $e6"ce t! a+es 'ef!re "s $eat a#$ "#fact te c!$e %as seale$ "# e#6el!e a#$ a+es ca# !#l*)#!% a'!ut te c!$e after Ce#s $eat0 Teref!re tere

"s eect"6e c!++u#"cat"!# 'et%ee# Ce# a#$ a+es t!"#f!r+ te trust +a$e f!r te 'e#e,t !f 7s Ye# a#$ er$auter

/


20/23

Acceta#ce Te secret trustee "s !#l* '!u#$ '* tetrust "f e as accete$ t! !l$ te sa+e !#trust0

I#te#$e$ trustee accete$ tat e %!ul$!l$ "t !# trust0

Wall#ra$e $ Te%%s c!urt el$ tat a

cla"+ f!u#$e$ !# secret trust fa"le$ 'ecausete $e6"sees )#e% #!t"# !f te testat!r9s"#te#t"!# u#t"l after "s $eat0

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21/23

Acceta#ce '* trustee c!ul$ e"ter 'e e=ress !ras a +ater !f "#fere#ce0

D"cta !f WOOD C "# case !f Wallra6e 6 Te''s.

Were a ers!# )#!%"# tat a testat!r "s+a)"# a $"s!s"t"!# "# "s fa6!ur "#te#$"# "t t! 'eal"e$ f!r ur!ses !ter ta# "s !%# 'e#e,te"ter e=ressl* r!+"ses !r '* s"le#ce "+l"es

tat e %"ll carr* te testat!rs "#te#t"!# "#t! eecta#$ te r!ert* "s left t! "+ u!# te fa"t !f tatr!+"se !r u#$erta)"# "s "# fact a case !f trust

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Al"cat"!#. Te fact tat %e# Ce# "#6"te$ a+es t! $"##er "#f!r+e$ "+ teleac* !f R7 /44444 u#$er te %"llf!r s!+e!#e sec"al a#$ recei$e&te !rta'le electr!#"c st!rae$e6"ce fr!+ Ce# s!%e$ tat te

e accete$ t! 'ec!+e te trustee0 T"s s!%s e=ress acceta#ce !#art !f a+es0

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CONCLUSION FOR

SECOND ISSUE Te 2 c!#$"t"!# !f a 6al"$ full secret trust are ful,lle$.a0 Itetio' Ce# "#6"te$ a+es t! $"##er a#$$el"6ere$ te $e6"ce t! "+

'0 Co((uicatio . +ust 'e +a$e 'ef!re te $eat!f testat!r e a#$e$ te $e6"ce t! a+es

c0 Acce)tace . e=ress acceta#ce %e# a+es #!trefuse %e# rece"6e$ te $e6"ce a#$ carr"e$ !ut te

trust after te $eat

Tus te full secret trust "6e# t! a+es t! !l$ R7

/44444 !# 'ealf !f 7s Ye# a#$ C" C" "s $ali&*

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