The House of Lords established the validity of a half secret trust, satisfying the same basic requirements as a fully secret trust. Additionally, obiter, that should the secret trustee refuse to carry out the trust, this would not defeat the trust and a willing replacement would be appointed.

The testator left property to Grogan and as he lay dying instructed Grogan that there was a letter instructing Grogan as to what to do with the property after the testator’s death. The terms of the instructions were not obligatory: ‘I do not wish you to act strictly on the foregoing instructions, but leave it entirely to your own good judgement to do as you think I would, if living, and as the parties are deserving.’ Grogan complied with some of the wishes but not all.

• The wording of the letter was properly constructed as imposing merely a moral obligation upon Grogan. This was not sufficient to create a secret trust and therefore the claimant’s action failed.
• Secret trusts are imposed to prevent a secret trustee from defrauding a testator, who only left property to the secret trustee in reliance on his promise to carry out the testator’s wishes.

The testator left property to three secret trustees: G, S, and O. The will and details of trust were drawn up by one of the secret trustees, who then communicated the details of the trust to the other two secret trustees, who neither expressly rejected nor accepted. S did accept eventually but O remained silent on the issue.

• It will be sufficient if the intention and terms of a secret trust are communicated to the trustees by an agent of the testator.
• Silence can also amount to acceptance; knowing of the trust, he failed to object.

The testator left property to his housekeeper on the understanding that on her death she would leave the property to O. She died and left the property to N.

• Sets out the requirements for a valid secret trust.
• Land can be the subject matter of a secret trust.

The testator had given one of his trustees instructions contained in a sealed envelope to be opened on his death. He did this before his will was executed. However, after he died the relevant bequest in his will stated that the property was left to the trustees for purposes that would be communicated to them in his lifetime.

• Details of the secret trust could be in a closed envelope if, before the testator’s death, the trustee knew of the testator’s intention to create a trust and where he could find the terms of this trust (constructive communication).
• The will must be consistent with the communication. The testator had already informed the trustees of his wishes, while the will referred to future communication.