Half Secret Trust

A half secret trust is a testamentary trust where the existence of the trust is disclosed to the intended trustee but not to the beneficiaries. This arrangement creates a duty for the trustee to execute the trust but keeps the terms or the beneficiaries of the trust hidden from all but the trustee.

The concept of half secret trusts emerged in English trusts law as a means to balance the testator's wishes with the requirements for valid trusts. Historically, these types of trusts have arisen from conflicts between testamentary freedom and the formalities required for creating valid trusts.

In contemporary law, half secret trusts are recognized as valid provided they meet the necessary requirements for the creation of a trust. Courts uphold the validity of such trusts to honor the testator's intentions while ensuring that trustees act according to their defined obligations.

• A testator leaves a will indicating that their estate should be given to their friend, who is expected to hold the property on trust for an undisclosed beneficiary.
• A decedent informs their attorney of a plan to leave assets in trust but does not explicitly list the beneficiaries in the will, only advising the attorney verbally.

• McCormick v. Grogan (1869) 1 IR 109