Monday 23 February 2026
Your weekly SQE Prep Quiz has arrived
Dear Subscriber,
Hope you had a great weekend. Please see below for the question, the answer to the previous question and associated resources. This is the web version of this newsletter.
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This Week’s Question: A claimant brings a £150,000 professional negligence claim in the High Court. Four months before trial, the claimant makes a valid Part 36 offer to settle for £100,000. The offer complies with all formal requirements and is not withdrawn. The defendant rejects the offer. At trial, the claimant is awarded £120,000. Which statement best reflects the likely costs consequences?
A. The claimant will recover standard costs up to judgment, but no additional consequences apply.
B. The claimant will recover indemnity costs from the expiry of the relevant period, enhanced interest on damages, enhanced interest on costs, and an additional amount capped at £75,000.
C. The claimant will recover indemnity costs from the date the offer was made and double damages.
D. The defendant must pay indemnity costs only if the court finds unreasonable conduct.
E. The claimant will recover indemnity costs only if the judgment exceeds £150,000.
Dig Deeper: Learn more about Part 36 offers, on https://youtu.be/G0YAmrSVstk
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Last Week’s Question: A woman executes a valid will leaving “£200,000 to my friend”. Before executing the will, she tells the friend that the money is to be held on trust for a named charity. The friend orally agrees. The will itself makes no reference to any trust.
After the woman’s death, the friend claims the money absolutely and denies any trust exists. The charity brings a claim.
Which statement best reflects the likely legal position?
A. The gift fails because the trust was not evidenced in writing.
B. The gift takes effect absolutely because the will contains no trust terms.
C. The friend holds the money on a fully secret trust for the charity.
D. The trust fails because it was not communicated after execution of the will.
E. The trust is invalid because the Wills Act formalities were not satisfied.
✅ Correct Answer: C. The friend holds the money on a fully secret trust for the charity. Explanation: This is a fully secret trust. The will appears to give an absolute gift. The existence and terms of the trust are communicated outside the will. For a fully secret trust to be valid, three elements must be satisfied: Intention to create a trust; Communication of the trust and its terms to the trustee before or at the time of execution of the will; Acceptance by the trustee (express or implied). Here: The woman clearly intended a trust. She communicated the terms before execution. The friend agreed. Equity enforces secret trusts to prevent fraud — the trustee cannot rely on the absence of formalities to keep the property beneficially. Secret trusts operate outside (or “dehors”) the will and therefore do not require compliance with Wills Act formalities for the trust terms themselves.
Why the other options are wrong
A Writing is not required for personal property in secret trusts.
B Ignores the equitable doctrine preventing fraud.
D Communication before execution is sufficient; it need not be after.
E The will itself was validly executed; the trust operates independently.
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All the best
Dr Ioannis (Yannis) Glinavos
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