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Secret trust definition

What does Secret trust mean? A secret trust is an arrangement in which a testator leaves property to a person in their will on the understanding—kept off the face of the will—that the recipient will hold it on trust for others. It operates dehors (outside) the will and is recognised in case law, which enforces it to prevent fraud and give effect to the testator’s intentions despite will‑writing formalities (for England and Wales, the Wills Act 1837). There are two forms: - Fully secret trusts: the will appears to make an outright gift. The trust’s terms must be communicated to, and accepted by, the intended trustee...

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Secret and Half-Secret Trusts in Wills: creation, communication, acceptance, proof, enforcement, failure; drafting, Larke v Nugus, TRS (England and Wales)

Practice notes
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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 entire property to G, whom he also appointed as executor. When close to death, C sent for G and, in a private interview, told...

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Web page updated on 21/05/2026

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