Re Stead
Where property is left to two joint tenants and only one has accepted a secret trust, whether the other is bound depends on when the trust was communicated.
Facts
Mrs Stead left her residuary estate to two people, Mrs Witham and Mrs Andrews, as joint tenants. She communicated to Mrs Witham, but not to Mrs Andrews, that the property was to be held for certain purposes. After her death, the question arose whether Mrs Andrews was bound by the secret trust.
Legal principle
Farwell J set out the rules for secret trusts where property is left to several legatees and only some have accepted the trust. If the trust was communicated to one joint tenant before the will was made, all the joint tenants are bound, because the gift was made on the faith of the promise. If it was communicated after the will was made, only the one who accepted it is bound. If the legatees are tenants in common, only those who accepted are bound. The rules have been criticised as illogical, and it has been suggested that the true test is whether the gift to the others was induced by the promise.
Related cases on secret trusts and mutual wills
- Blackwell v Blackwell [1929] AC 318
- Re Boyes (1884) 26 Ch D 531
- Re Cleaver [1981] 1 WLR 939
- Re Gardner (No 2) [1923] 2 Ch 230
- Re Goodchild [1997] 1 WLR 1216
- Healey v Brown [2002] EWHC 1405 (Ch), [2002] WTLR 849
- Kasperbauer v Griffith [2000] WTLR 333
- Re Keen [1937] Ch 236
Studying equity and trusts? Our tutors help you understand and apply cases like this in essays, problem questions and exams. Request a quote or browse our law notes.
This summary is for study and revision and is not legal advice. Although our case summaries are checked for accuracy, we do not guarantee that they are free from errors or omissions. Always read the full judgment for the court's reasoning.
