SECRET TRUSTS

SECRET TRUSTS

3 required elements
1. Intention
  1. Communication
    1. Acceptance
      1. Either expressly or by acquiescence OTTOWAY V NORMAN
    2. WALLGRAVE V TEBBS Effective terms must be communicated, within testators lifetime
    3. If terms not communicated will be a resulting trust RE BOYES
    4. Communication must be of a legally binding obligation not just a moral obligation. McCORMICK V GROGAN
  2. Must show intention or trustee will take absolutely
If trustees won't take on secret trust will result back
1. Once trust established if add extra property or beneficiaries
  1. RE COLIN COOPER
    1. Must be communicated to and accepted by trustees
Problems with co-owners
1. Tenants in Common
  1. Joint Tenants
    1. RUSSELL V JACKSON survivorship if not told at all, take absolutely
      1. If 1 JT told prior to execution of will, ALL JT's will be bound
        If told after execution, will only be bound if accept
  2. RE STEAD If only 1 trustee informed, then only 1 is bound. Must be informed in testators lifetime
Death of Beneficiary
1. Trust operates outside of a will so property will pass to deceased beneficiaries next of kin
2. RE GARDNER

Resource summary

	Created by costafortune almost 11 years ago