How do secret trusts differ from half secret trusts?

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The Answer is Secret trusts and half-secret trusts are both mechanisms in the law of trusts and wills that allow a testator (the person making a will) to leave property to a trustee without openly disclosing the full details of the trust in the will. However, they differ in terms of their formation and the way they are communicated.

Secret Trusts:
A secret trust, also known as a fully secret trust, arises when a testator leaves assets to a person (the trustee) in their will, but the will does not disclose the existence of a trust or the intended beneficiaries. The understanding that the trustee is to hold the property in trust for the benefit of the secret beneficiaries is communicated to the trustee outside of the will, often verbally or in a separate document. This communication must occur before or at the time of the execution of the will.

The key characteristics of a secret trust are:
- The will appears to make an outright gift to the trustee.
- The existence of the trust and the identity of the beneficiaries are not disclosed in the will.
- The details of the trust are communicated to the trustee separately and must be done before or at the time of the execution of the will.

Half-Secret Trusts:
A half-secret trust, on the other hand, is indicated in the will itself. The will states that the property is to be held in trust, but it does not specify the details of the trust or who the beneficiaries are. These details are communicated to the trustee separately and, like a secret trust, must be done before or at the time of the execution of the will.

The key characteristics of a half-secret trust are:
- The will indicates that the property is to be held in trust, but the terms of the trust are not detailed in the will.
- The identity of the beneficiaries is not disclosed in the will.
- The details of the trust are communicated to the trustee separately and must be done before or at the time of the execution of the will.

The main difference between secret and half-secret trusts lies in the disclosure within the will. In a secret trust, there is no indication of a trust in the will, while in a half-secret trust, the will indicates that the property is to be held in trust, but without revealing the full details or the beneficiaries.

Both types of trusts are enforced on the basis of the principle that "equity will not allow a statute to be used as an instrument of fraud." This means that the courts will enforce these trusts to prevent the trustee from keeping the property for themselves, as this would be against the testator's intentions and would constitute a fraud on the beneficiaries.

How Do Secret Trusts Differ from Half Secret Trusts