Secret Trust Flashcards
Equity will not allow a trust to be used as an?
Engine of fraud
Can a person who has obtained property by reason of his promise to hold it as a trustee subsequently deny the trust because there isn’t a written evidence of it?
No
Which case gives answer to the above question?
Bannister Rochefoucold v Boustead
Can a donee under a will be allowed to keep for his own benefit the property which has been bequeathed to him by reason of his promise to hold it on trust for a secret beneficiary?
No
Does the equitable doctrine violate the Wills Act and the Wills law?
No
What section of the Will Act and Wills Law
Section 9 and 6 respectively
Why does the equitable doctrine not violate the relevant sections of the Wills Act and the Wills law?
Because the donee is regarded as holding as a constructive trustee and the secret beneficiary takes his interest ‘dehor’ the will
FULLY SECRET TRUST
WHAT HAPPENS HERE?
The will contains no reference to a trust at all
What will the will state?
States that certain lropertbis given to X and nothing is said about his holding on trust
Illustrations of secret trusts
Case?
Mc Cormick v Grogaj
What happened in the case?
T gives a legacy to X by his will. In T’s lifetime X promises to hold upon trust for B (the secret beneficiary)
Held
That the trust is enforceable by B. It is immaterial whether the promise was given before or after the making of the will
Case?
Re Boyes
What happened
T gives a legacy to Xbox his will. In T’s lifetime X promises to hold it on trust, but doesn’t learn the identity of B unlike after T’s death.
What was held?
B is not entitled to the property since his identity has not been disclosed
