When can a secret trust be enforced?

A secret trust can be enforced when the beneficiary proves a prior trust agreement because this aligns with the underlying principles of trust law, which aim to uphold the intentions of the testator or settlor. In secret trusts, the intention to create a trust is not made obvious in the will or legal document but is instead communicated informally. As a result, for the trust to be enforced, the beneficiary must demonstrate that a valid trust agreement existed, despite its absence from formal documentation.

This requirement to prove a prior trust agreement ensures that the intentions of the deceased regarding the trust property are honored while also addressing the issue of evidentiary standards. Since secret trusts are not explicitly documented, relying on verbal communications alone would be problematic for enforcement as they could lead to disputes regarding the terms and existence of the trust. Therefore, the necessity of establishing a prior agreement serves as a safeguard against false claims and further illustrates the importance of intention behind the trust arrangement.