problem question on secret trusts
Hi guys im struggling with a problem question on secret trusts any help ?
heres the question
Edward in his will dated July 31st 1960 left £5,000 to Lear "on such trusts as I have communicated to him".
In the previous month Edward had told Lear that the £5,000 was to be held in trust for David.
Who is entitled to the money in the following circumstances:-
a) David witnessed Edward's will and he predeceased Edward;
b) David witnessed Edward's will and Lear predeceased Edward;
c) Edward informed Lear of the identity of the beneficiary in June 1960 and the clause in the will read "£5,000 to Lear on trusts as I shall communicate to him".
heres the question
Edward in his will dated July 31st 1960 left £5,000 to Lear "on such trusts as I have communicated to him".
In the previous month Edward had told Lear that the £5,000 was to be held in trust for David.
Who is entitled to the money in the following circumstances:-
a) David witnessed Edward's will and he predeceased Edward;
b) David witnessed Edward's will and Lear predeceased Edward;
c) Edward informed Lear of the identity of the beneficiary in June 1960 and the clause in the will read "£5,000 to Lear on trusts as I shall communicate to him".
Original post by jaycee21
Hi guys im struggling with a problem question on secret trusts any help ?
heres the question
Edward in his will dated July 31st 1960 left £5,000 to Lear "on such trusts as I have communicated to him".
In the previous month Edward had told Lear that the £5,000 was to be held in trust for David.
Who is entitled to the money in the following circumstances:-
a) David witnessed Edward's will and he predeceased Edward;
b) David witnessed Edward's will and Lear predeceased Edward;
c) Edward informed Lear of the identity of the beneficiary in June 1960 and the clause in the will read "£5,000 to Lear on trusts as I shall communicate to him".
heres the question
Edward in his will dated July 31st 1960 left £5,000 to Lear "on such trusts as I have communicated to him".
In the previous month Edward had told Lear that the £5,000 was to be held in trust for David.
Who is entitled to the money in the following circumstances:-
a) David witnessed Edward's will and he predeceased Edward;
b) David witnessed Edward's will and Lear predeceased Edward;
c) Edward informed Lear of the identity of the beneficiary in June 1960 and the clause in the will read "£5,000 to Lear on trusts as I shall communicate to him".
I don't know anything about secret trusts since they weren't on our syllabus, but I seem to recall Virgo's textbook having a pretty helpful section on them.
Original post by Tortious
I don't know anything about secret trusts since they weren't on our syllabus, but I seem to recall Virgo's textbook having a pretty helpful section on them.
Thank you will look into that
a) where the beneficiary (David) predeceases the testator (Edward), the trust fails and the trustee keeps the property in a full secret trust, but is held on a resulting trust for the beneficiary's estate in a half secret trustb) where full secret sole trustee predeceases the testator, the trust lapses and remains in the testator's estate; but there is no problem where there are other trustees, the trust carries on...if however half secret trust, the trust continues - there is a maxim: equity will not allow a trust to fail for want of a trustee. Note the different outcomes for full secret and half secret trusts, owing to the fact that the trust is referenced in the testator's will in a half secret trust and it must therefore execute upon the execution of the willc) as long as Lear (Trustee) accepted the communication of the secret trust from testator (Edward), beneficiary (David) gets the property as this is a properly constituted half secret trust with David as the beneficiary
Original post by jaycee21
Hi guys im struggling with a problem question on secret trusts any help ?
heres the question
Edward in his will dated July 31st 1960 left £5,000 to Lear "on such trusts as I have communicated to him".
In the previous month Edward had told Lear that the £5,000 was to be held in trust for David.
Who is entitled to the money in the following circumstances:-
a) David witnessed Edward's will and he predeceased Edward;
b) David witnessed Edward's will and Lear predeceased Edward;
c) Edward informed Lear of the identity of the beneficiary in June 1960 and the clause in the will read "£5,000 to Lear on trusts as I shall communicate to him".
heres the question
Edward in his will dated July 31st 1960 left £5,000 to Lear "on such trusts as I have communicated to him".
In the previous month Edward had told Lear that the £5,000 was to be held in trust for David.
Who is entitled to the money in the following circumstances:-
a) David witnessed Edward's will and he predeceased Edward;
b) David witnessed Edward's will and Lear predeceased Edward;
c) Edward informed Lear of the identity of the beneficiary in June 1960 and the clause in the will read "£5,000 to Lear on trusts as I shall communicate to him".
this question is on half secret trust , mainly you have to see 3 components, intention, communication, and acceptance.
1/ communication is done orally.
2/ communication done before will execute.
3/ it can assume that acceptance has done clearly.
a) David is the secret beneficiary, Under s 15 of the Wills Act 1837, a gift by will to a beneficiary fails if the beneficiary/
his spouse/his civil partner witnesses the will. but under a secret trust operates dehors the will and therefore is not governed by the provisions of the Wills Act 1837. therefore trust is valid. You should mention that this decision has been criticised for a number of reasons, notably, the secret trust was not completely constituted until the trust property vested in the secret trustee, i.e. on the death of the testatrix. Also a will may be revoked at any time before the testatrix’s death but the decision suggests that a will containing a secret trust cannot be altered once the secret trustee has agreed to act as such.
David predeceased Edward, Under s 25 of the Wills Act 1837, a gift by will to a beneficiary who predeceases the testator lapses, i.e. fails. A secret trust arises outside (dehors) the will and therefore is not governed by the provisions of the Wills Act 1837.
b) David witness discuss above, lear predeceased Edward, in the case of a half-secret trust, it is clear that lear
holds the £5000 as trustee, i.e. he is not a beneficiary under the will, and therefore the secret trust will not fail if he predeceases the testator. Ideally, Edward, would need to execute a new will and arrange for someone else to be the half-secret trustee but if he omitted to do so, the maxim ‘equity will not allow a trust to fail for want of a trustee’ would apply and, provided the terms of the half-secret trust could be identified, it is likely that Edward’s personal representative (executor) would act as trustee.
c) During his lifetime, the testator must communicate the terms of the trust to the secret trustee. The rationale for this principle seems to be that the secret trustee should have the right to reject the trusteeship when he is told of the terms of the trust. However, against this rationale, there is obiter dicta relating to a half-secret trust (which could apply to a fully secret trust) that communication of the terms of the trust and acceptance by the secret trustee may be constructive – Re Keen , e.g. handed over in a sealed envelope to be opened after the testator’s death.
this question is on half secret trust , mainly you have to see 3 components, intention, communication, and acceptance.
1/ communication is done orally.
2/ communication done before will execute.
3/ it can assume that acceptance has done clearly.
a) David is the secret beneficiary, Under s 15 of the Wills Act 1837, a gift by will to a beneficiary fails if the beneficiary/
his spouse/his civil partner witnesses the will. but under a secret trust operates dehors the will and therefore is not governed by the provisions of the Wills Act 1837. therefore trust is valid. You should mention that this decision has been criticised for a number of reasons, notably, the secret trust was not completely constituted until the trust property vested in the secret trustee, i.e. on the death of the testatrix. Also a will may be revoked at any time before the testatrix’s death but the decision suggests that a will containing a secret trust cannot be altered once the secret trustee has agreed to act as such.
David predeceased Edward, Under s 25 of the Wills Act 1837, a gift by will to a beneficiary who predeceases the testator lapses, i.e. fails. A secret trust arises outside (dehors) the will and therefore is not governed by the provisions of the Wills Act 1837.
b) David witness discuss above, lear predeceased Edward, in the case of a half-secret trust, it is clear that lear
holds the £5000 as trustee, i.e. he is not a beneficiary under the will, and therefore the secret trust will not fail if he predeceases the testator. Ideally, Edward, would need to execute a new will and arrange for someone else to be the half-secret trustee but if he omitted to do so, the maxim ‘equity will not allow a trust to fail for want of a trustee’ would apply and, provided the terms of the half-secret trust could be identified, it is likely that Edward’s personal representative (executor) would act as trustee.
c) During his lifetime, the testator must communicate the terms of the trust to the secret trustee. The rationale for this principle seems to be that the secret trustee should have the right to reject the trusteeship when he is told of the terms of the trust. However, against this rationale, there is obiter dicta relating to a half-secret tr
1/ communication is done orally.
2/ communication done before will execute.
3/ it can assume that acceptance has done clearly.
a) David is the secret beneficiary, Under s 15 of the Wills Act 1837, a gift by will to a beneficiary fails if the beneficiary/
his spouse/his civil partner witnesses the will. but under a secret trust operates dehors the will and therefore is not governed by the provisions of the Wills Act 1837. therefore trust is valid. You should mention that this decision has been criticised for a number of reasons, notably, the secret trust was not completely constituted until the trust property vested in the secret trustee, i.e. on the death of the testatrix. Also a will may be revoked at any time before the testatrix’s death but the decision suggests that a will containing a secret trust cannot be altered once the secret trustee has agreed to act as such.
David predeceased Edward, Under s 25 of the Wills Act 1837, a gift by will to a beneficiary who predeceases the testator lapses, i.e. fails. A secret trust arises outside (dehors) the will and therefore is not governed by the provisions of the Wills Act 1837.
b) David witness discuss above, lear predeceased Edward, in the case of a half-secret trust, it is clear that lear
holds the £5000 as trustee, i.e. he is not a beneficiary under the will, and therefore the secret trust will not fail if he predeceases the testator. Ideally, Edward, would need to execute a new will and arrange for someone else to be the half-secret trustee but if he omitted to do so, the maxim ‘equity will not allow a trust to fail for want of a trustee’ would apply and, provided the terms of the half-secret trust could be identified, it is likely that Edward’s personal representative (executor) would act as trustee.
c) During his lifetime, the testator must communicate the terms of the trust to the secret trustee. The rationale for this principle seems to be that the secret trustee should have the right to reject the trusteeship when he is told of the terms of the trust. However, against this rationale, there is obiter dicta relating to a half-secret tr
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