Which doctrine allows a court to modify a charitable trust's terms to carry out the settlor's general charitable intent when exact compliance is impracticable?

Which doctrine allows a court to modify a charitable trust's terms to carry out the settlor's general charitable intent when exact compliance is impracticable?

• A. Cy pres
• B. Restraint on alienation
• C. Honorary trust
• D. Merger

Answer: (A)

Cy pres is the doctrine that lets a court modify a charitable trust when exact compliance with the terms is impracticable, so the settlor’s charitable intent can still be carried out as closely as possible. The court looks for a substitute use or recipient that preserves the general charitable objective, usually within the same charitable class and in a manner and location close to the original plan. In practice, if the exact gift can’t be fulfilled, cy pres allows redirecting the funds to a related charitable purpose that aligns with the settlor’s intent. For example, if a trust was meant to fund a specific library project but that exact project cannot proceed, cy pres might allow funding a public library or library-related services in the same area or for a similar educational purpose. Other options don’t fit this scenario because they don’t authorize adjusting a charitable gift to reflect the settlor’s general charitable intent when circumstances change: restraining alienation governs limits on transfer of trust property, an honorary trust involves non-charitable objectives, and merger concerns the combining of estates or interests.

Cy pres is the doctrine that lets a court modify a charitable trust when exact compliance with the terms is impracticable, so the settlor’s charitable intent can still be carried out as closely as possible. The court looks for a substitute use or recipient that preserves the general charitable objective, usually within the same charitable class and in a manner and location close to the original plan. In practice, if the exact gift can’t be fulfilled, cy pres allows redirecting the funds to a related charitable purpose that aligns with the settlor’s intent. For example, if a trust was meant to fund a specific library project but that exact project cannot proceed, cy pres might allow funding a public library or library-related services in the same area or for a similar educational purpose.

Other options don’t fit this scenario because they don’t authorize adjusting a charitable gift to reflect the settlor’s general charitable intent when circumstances change: restraining alienation governs limits on transfer of trust property, an honorary trust involves non-charitable objectives, and merger concerns the combining of estates or interests.