ABSTRACT

In the context of a fully secret trust, if the sole intended trustee predeceases the testator, his or her interest will lapse and the property, which would have been subject to the secret trust, will fall into residue. Accordingly, the intended secret trust will fail. Although there is no direct authority that supports this analysis, Cozens Hardy LJ in Re Maddock in an obiter pronouncement hinted at this conclusion.