How Cy Pres Works
Say you leave money to a specific charity in your trust or will. If that charity no longer exists when you pass away, a court can redirect the gift. The court looks at your original intent and finds a similar charity.
A Practical Example
Suppose you leave $100,000 to a specific animal rescue organization. By the time the gift takes effect, that organization has dissolved. Under cy pres, the court can redirect the funds to another animal rescue group in the same area. Your charitable intent stays alive.
When Cy Pres Does Not Apply
Cy pres only applies to charitable gifts. It does not apply to gifts to people. The court must also find that you had a general charitable intent. If the court decides you only wanted that exact charity to receive the money, the gift may fail. It would then return to the estate.
How to Plan Around It
Include backup charitable beneficiaries in your estate plan. If your primary charity no longer exists, a named alternate removes the need for court involvement. This saves time, avoids legal fees, and keeps your charitable wishes on track. Straightforward as it gets.