Fully Secret And Half Secret Trusts
In her latest Timms Blog, Wills and Probate Solicitor Charlotte Day discusses “Fully Secret And Half Secret Trusts”
A Will becomes a public document once the Grant of Representation has been granted. This can cause problems for Testators who would prefer not to reveal the details of the gifts in their Will to the public.
What Is A Fully Secret Trust?
A fully secret trust can be used to conceal the identity of the recipient. For example, the Testator’s Will might read “I leave £5,000 to Dominic”. On the face of the Will, this may look like the Testator has left £5,000 to Dominic. However, the Testator has secretly asked Dominic to hold the £5,000 on trust for Robert.
The Will wouldn’t make any reference to the trust, so no one would know that the £5,000 is being paid to Robert. However, this can cause problems, as the success of the gift depends on Dominic acting honestly and passing the money onto Robert. Also, what happens if Dominic dies before the Testator?
What Is A Half Secret Trust?
A half secret trust is where the Will creates a trust, but it does not reveal any of the details, for example, who the beneficiaries are. Usually, the Will would leave the gift to a trustee to hold on trust “for purposes already communicated to them”.
Although these trusts can be useful for maintaining privacy, certain criteria need to be fulfilled for them to be validly created (or even terminated).
The existence of these sorts of trusts can also create further complications for executors when administrating an estate. And of course, they can carry an increased degree of risk that your wishes will not be fulfilled.
Are There Any Other Options Available?
There are other options available to Testators who wish to maintain a certain level of privacy which may be better suited (and perhaps are a ‘safer option’).
If you would like further information about preparing your Will or advice on dealing with a secret trust, please contact Charlotte Day on 01283 561 531 or c.day@timms-law.com. . Alternatively, visit our website here.
October 2021