Write 7 pages with APA style on Problem with Categorizing the Secret. Trust is a device in which rights, either personal (e.g. a right to be repaid by a borrower) or proprietary (e.g. a fee simple or lease of land) are held by one person on behalf of another (Penner and Swadling, 2007). The person creating the trust is called the settler, the person holding the rights is the trustee, and the person for whom those rights are held is the beneficiary. Moreover, the conception of trust is an amalgam of several ideas that relate equity, contract, obligation, and the law of property. The trust has several advantages over the will especially in passing the property rights to the genuine beneficiaries. This holds more relevant when secrecy has to be maintained for some reasons which are not possible in case of a will. Of course, the creation of trust may result in some problems legally especially while categorizing the type of trust i.e. full secret trust or half secret trust. This necessitates the critical analysis of theoretical bases of the formation of secret trusts, advantages of trusts over wills, differences between half secret and full secret trusts and some practically useful case studies.
Preventing fraud has been the main theoretical basis for trust formation (Hodge, 1980). At the same time, the wider and narrower views of fraud making during the transfer of properties have to be kept in mind while the formation of any trust. Some times, the trustee may try to cheat the settler by deviating from the norms actually mentioned in the trust (Bannister v Bannister, 1948). The main advantages of trusts over wills would also form the theoretical basis for the formation of any trust. Some theories mention that the formation of trust and transfer of money or other assets to the beneficiaries would certainly aid in saving income tax and any other hidden taxes. Secondly, it offers the settler to maintain privacy and more importantly secrecy. This is quite remarkable in maintaining the safety of the beneficiaries. It is also conceptualized that the possibility of any intentional fraud can be .minimized by the formation of trust relative to the formation of a will.