A major development in English probate law has emerged as the England and Wales Court of Appeal (EWCA) ruled that a secret trust claim over an estate may proceed to trial. This case is expected to have wide-reaching effects on how verbal agreements and informal understandings around inheritance are treated under UK law.
If you’re involved in will planning, acting as an executor, or disputing a will, understanding the implications of this ruling could be critical.
What is a Secret Trust Claim?
A secret trust is an arrangement where a person (the settlor) makes a will naming a beneficiary, with a separate understanding—usually verbal—that the named beneficiary will hold the asset in trust for someone else. There are two types of secret trusts:
- Fully secret trusts – Not mentioned in the will at all.
- Half-secret trusts – Referred to in the will, but the terms are undisclosed.
These arrangements rely heavily on trust and good faith, but without formal documentation, proving their validity has historically been a challenge. Until now, the courts were hesitant to uphold such claims due to lack of written evidence.
What Happened in the Recent Case?
In the landmark case, the deceased had left her entire estate to a friend. However, her son claimed that there was a verbal agreement that the friend would pass on the assets to him. The High Court initially dismissed the claim, citing insufficient evidence. But the Court of Appeal disagreed, ruling that the matter should proceed to trial so that the agreement’s validity can be fully examined.
This ruling signifies that courts are open to looking beyond the written will to uncover the true intentions of the deceased—if compelling evidence exists. You can read the full case summary via STEP’s news article.
Why This Matters for You
Whether you’re writing a will or interpreting one, the takeaway is clear: informal promises may carry legal weight. If a family member, friend, or advisor verbally promised you something regarding an estate, you may have a legitimate secret trust claim.
This has profound implications for beneficiaries, executors, and legal professionals, as more estates could now face challenges based on unwritten agreements.
To avoid uncertainty, it’s crucial to work with professionals who understand the complex intersection of trust law, probate, and tax. At Care Accountancy, we help individuals plan their estates clearly and legally—minimising risk of disputes.
Expert Legal and Tax Support
Making a will is just the first step in comprehensive estate planning. Our team at Care Accountancy can assist with:
- Drafting legally binding wills
- Interpreting or disputing wills with potential secret trusts
- Managing probate applications and estate administration
- Advising on inheritance tax and trust structures
If you need further context on estate regulations, you can explore guidance from HMRC, official probate resources on the UK Government website, or professional standards from ICAEW.
We’re here to ensure your estate is not only protected but also distributed exactly how you intended.
Get in Touch
Whether you suspect a secret trust exists, or you want to prevent such claims against your own estate, early professional advice is key. Visit our contact page or speak with our friendly team at one of our five UK offices.
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