Equity and Trusts: Fully Secret and Half Secret Trusts: the difference

Fully Secret

There are no names of trustees or beneficiaries on the will, neither are there terms or any information.

Requires INTENTION, COMMUNICATION and ACCEPTANCE.

Leading case is Ottaway v Norman.

In the event of a failure of the secret trust, the intended secret trustee takes the trust property absolutely.

The trust will fail if the intended trustee dies before the testator.

Half Secret

The name of the trustee will be mentioned in the will but the terms of the trust and the beneficiaries will not be mentioned.

Also requires INTENTION, COMMUNICATION and ACCEPTANCE, however the 'communication' must be before the execution of the will and evidence will be inadmissible if it's not consistent with the terms of the will.

Leading case is Blackwell v Blackwell.

In the event of a failure to create the half secret trust, a resulting trust will be set up for the testator's legatees and next of kin.

The trust will not fail if the intended trustee dies before the testator.