Secret Trust

A secret trust is a form of trust not declared in the will, where the testator intends for the trustee to hold property for the benefit of a beneficiary who is not mentioned in the will. This type of trust allows for the settlor's wishes to be fulfilled without formally establishing the trust in writing.

Secret trusts originated in English law as a response to the formalities required for testamentary dispositions. They are designed to allow individuals to express wishes privately, particularly in situations where the disclosure of beneficiaries may be contrary to the testator’s intentions.

In modern law, secret trusts are recognized primarily in the context of wills and estates. Courts will enforce secret trusts when they are established through clear intentions of the testator and acceptance by the trustee, often allowing the rightful beneficiary to claim an interest in the property despite lack of formal documentation.

• A testator verbally informs a friend that they want their estate to be distributed to a specific organization but does not include this information in their will.
• A decedent leaves their property to a trustee with a private agreement that the trustee will distribute the property to an intended but unnamed beneficiary.

• Ottaway v. Norman [1972] 1 WLR 1347