Equity and Trusts Essay Example | Topics and Well Written Essays - 2000 words

Equity and Trusts - Essay Example The further disposition of that property will operate as a secret trust requiring that the person to whom the bequest is granted to comply with the wishes of the donor provided he agrees to hold the property for the benefit of another or by virtue of his silence he acquiesces.1 There is evidence that Tom acquiesced in Vito’s request because when Vito made the bequest of 100,000 pounds and pointed out that the proceeds were to be disbursed between Lucy and Santino. Tom did not respond. Therefore his silence will be construed as consent to Vito’s wishes. The case of Gold and Gilbert v Hill provides some guidance for the validity of secret trust of 100,000 to Tom to be held upon trust for Santino and Lucy. Gilbert designated Gold as his beneficiary for an insurance policy in the sum of 350,000 by virtue of a non-testamentary disposition. When executing the necessary insurance policy form, Gilbert provided information that defined Gold as the executor of his estate. At a later time Gilbert executed a Will, in which he named his solicitor the executor of his estate with his wife designated as the only beneficiary.2 Thereafter Gilbert became involved in an intimate relationship with Carol following which he informed Gold of the particulars contained in his bequest of 350,000 via the insurance policy. He pointedly advised Gold that ‘if anything happens to me you will have to sort things out. You know what to do - look after Carol and the kids. Dont let that bitch get anything.’3 Following Gilbert’s death Gold and Carol took the matter to court seeking declarative relief on the grounds that Gold held the insurance policy proceeds in the terms of a secret trust for the benefit of Carol. The court held that based on the evidence which consisted of the information contained in Gilbert’s insurance application form together with his communication to Gold, on a balance of probabilities, operated to