Secret trusts-trusts laws and accounts, Financial Accounting

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SECRET TRUSTS

The initial basis of the doctrine of secret trusts was the refusal of equity to permit a statute to be used as an engine of fraud (e.g. Bannister v Bannister).  Certain formalities are necessary for the creation of inter vivos trusts of land for testamentary dispositions. A trust of land must be evidenced in writing; and all testamentary dispositions must comply with the Law of Succession Act.  In the case of wills, secret trusts are of two types:

  • Fully secret trusts
  • Half secret trusts

 


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