Legal term
Cy pres
Answer: Cy pres. In charitable-trust cases where the stated purpose becomes unlawful or impossible, courts may preserve the gift by redirecting it to a charitable purpose that is as near as possible to the settlor’s intent. Many states require a showing of general charitable intent before applying the doctrine.
Rule to remember
Cy pres is the equitable doctrine in charitable-trust law that permits a court to modify a trust’s charitable purpose to one as near as possible to the settlor’s intent when the original purpose becomes unlawful or impossible.
Key elements and checks
- A valid charitable trust exists.
- The specific charitable purpose becomes unlawful or impossible to carry out.
- The court discerns the settlor’s broader charitable intent.
- The court redirects the trust to a charitable purpose approximating that intent rather than terminating the trust.
- Meaningful variation: many states condition use of the doctrine on finding a general charitable intent; if the settlor’s narrow unlawful aim was inseparable, the gift may fail.
In the source’s words
““the general intention of the testator in favor of charity will be effectuated by the court through a cy-pres application of the fund.””
LATE CORPORATION OF THE CHURCH OF JESUS CHRIST OF LATTER-DAY SAINTS et al. v. UNITED STATES, 136 U.S. 1 (1890) | LII
““In such a case the cy pres doctrine is not applicable.””
E. S. EVANS et al. v. ABNEY et al., 396 U.S. 435 (1970) | LII
State law meaningfully varies. Some jurisdictions demand proof (or presume presence) of a general charitable intent before relief is granted; consult the governing statute or precedent.