Half secret trust meaning

This Practice Note addresses identifying a fiduciary, fiduciary duties and obligations, the no conflict rule, the no profit rule, a fiduciary's duty of confidence, and the remedies available for breach of fiduciary duty. Who is a fiduciary? There is no definitive catalogue of relationships that give rise to fiduciary obligations at common law in every situation universally. Certain relationships are inherently fiduciary, eg trustee and beneficiary, solicitor and client, principal and agent, business partner and co-partners, together with mortgagor and mortgagee. The obligations of some fiduciaries have been set out in statute; for instance, trustees owe a statutory duty of skill and care under section 1 of the Trustee Act 2000 (TrA 2000), and directors' relationships with their companies are addressed in the Companies Act 2006 too. For guidance on directors' fiduciary duties, see Practice Note: of directors for further detailed discussion. In Bristol and West Building Society v Mothew, Millet LJ explained that a fiduciary is a person who agrees to act for,...

Secret trusts The enforcement of secret trusts has its roots in equitable principles. In these cases, it is not typically the Will itself that is in issue, but a specific disposition. Definition There are two recognised forms of secret trust: Fully secret trust: the named beneficiary appears to receive an absolute gift, yet has in fact agreed with the testator to hold the property on specified trusts. Half or semi-secret trust: the beneficiary is merely a trustee and the terms of the trust are not disclosed, or not fully disclosed, in the Will. There is also a distinct situation that likely falls between these, where the testator asks the beneficiary to deal with certain property in a manner already communicated, or to be communicated, without imposing a trust or legal obligation. In that circumstance the beneficiary takes outright. The fundamentals The key elements of a secret trust are: Intention Communication Acquiescence ...

A secret or half-secret trust can be helpful where a testator wishes to keep the identity of a beneficiary of a testamentary gift out of the wording of their Will. Types of secret trusts secret or fully secret trusts semi-secret or half-secret trusts A fully secret trust arises where the testator’s Will leaves property to a recipient without any indication that it is to be held on trust; on the face of it the gift appears absolute and beneficial, yet in reality the recipient is bound by a trust obligation. Such an obligation can only come into being if, during the testator’s lifetime, they asked the recipient to hold the gift not for their own benefit but for someone else, and the recipient, either expressly or by acquiescence, agreed to give effect to the testator’s intention. This type of trust was endorsed by the House of Lords in McCormick v Grogan. In McCormick v Grogan, C made a Will leaving his...