MBE Rules · Wills, Trusts & Estates

Charitable Trusts — Cy Pres

Cal. Prob. Code § 15409

The rule

Where the specific charitable purpose of a trust becomes impracticable or impossible, the court may apply cy pres doctrine to modify the trust to accomplish the settlor's general charitable intent. The court must find general charitable intent and select an alternative purpose reasonably approximating the original.

In plain English

The cy pres doctrine allows a court to change the terms of a charitable trust when the original purpose is no longer feasible. The court must determine that the settlor had a general charitable intent and then find a new purpose that closely aligns with the original intent.

Worked example

A trust was established to fund a specific hospital that has since closed down. The court finds that the settlor intended to support healthcare in the community. Using the cy pres doctrine, the court modifies the trust to fund a new community health clinic instead.

Memory hook

Cy pres: when the original plan goes awry, keep the charity alive!

The trap

Exams may present scenarios where the original purpose seems impractical, but students might overlook whether the settlor's general intent can still be discerned. It's crucial to identify both the impracticality and the general intent.

How examiners test it

Questions often involve a fact pattern where a charitable purpose fails, requiring students to analyze the settlor's intent and propose an alternative purpose that aligns with cy pres principles.

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