The rationale underpinning the recognition of secret trusts as explained in McCormick v Grogan (1869-70) LR 4 HL 82 is the maxim that equity will not allow a statute to be used as an instrument of fraud.

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The rationale for recognition of secret trusts, as explained in McCormick v Grogan, is indeed based on the principle that equity will not allow a statute to be used as an instrument of fraud. In this case, the testator had transferred legal title of his property to another person, but had intended that person to hold the property in trust for a third party. Such trusts are known as "secret trusts" because their existence is not disclosed in the will. The court recognized the trust because to do otherwise would allow the law of wills to be used as an instrument of fraud by allowing the trustee to retain the property for himself.

The Rationale Underpinning the Recognition of Secret Trusts as Explained