Half secret trusts

In this type of trust the will states that the gift is on trust, but the name of the beneficiary is not specified. Since the existence of a trust is disclosed, the trustee is unable to claim the property for himself. The following points should be noted:-
 
1) Evidence tending to establish a half-secret trust is inadmissible if it contradicts the terms of the will (Re Keen);

2) Communication of the trusts to the trustees will be ineffective if it takes place after the will has been executed (Johnson v Ball);

3) Where there is no proper communication to the trustees, the property belongs to the residuary legatee or, if no such person, the testator's next of kin (Johnson v Ball).

Note: Secret trusts operate outside the will. Thus:

• A beneficiary under a secret trust does not lose his interest if he witnesses the will or if he predeceases the testator;
• Where a secret trustee predeceases the testator, the legacy and the trust fail.