What Cy Pres Means in Practice
Cy pres (pronounced "see pray") comes from a French phrase meaning "as near as possible." Under trust law, the idea is straightforward. If a charitable trust can no longer fulfill its original purpose, the court redirects the property toward a purpose that comes as close as possible to the intentions of the donor.
If a particular charitable purpose becomes unlawful, impracticable, impossible to achieve or wasteful: 1. The trust does not fail in whole or in part. 2. The trust property does not revert to the settlor or the settlor's successors in interest. 3. The court may apply cy pres to modify or terminate the trust by directing that the trust property be applied or distributed in whole or in part in a manner consistent with the settlor's charitable purposes.
A.R.S. § 14-10413(A)This prevents a common problem. A generous donor creates a charitable trust, and years later the specific cause ceases to exist or becomes impractical. Without cy pres, the assets could revert to the settlor's family. That would defeat the original intent entirely.
When a court uses cy pres to modify a charitable trust, it looks closely at the original purpose and the intentions of the donor. The goal is to keep the charitable mission alive, not to redirect assets toward an unrelated cause. The court may also choose to alter the administration of the trust if that better preserves the donor's vision.
When the Trust Can Revert Instead
Cy pres is not absolute. The law recognizes two situations where a reversion clause can override the court's authority to modify. The trust property can return to the settlor if the settlor is still alive when the provision takes effect, or if fewer than twenty-one years have passed since the trust was created.
A provision in the terms of a charitable trust that would result in distribution of the trust property to a noncharitable beneficiary prevails over the power of the court under subsection A to apply cy pres to modify or terminate the trust only if, when the provision takes effect: 1. The trust property is to revert to the settlor and the settlor is still living. 2. Fewer than twenty-one years have elapsed since the date of the trust's creation.
A.R.S. § 14-10413(B)After twenty-one years, or once the settlor has passed, the cy pres doctrine takes priority. The charitable purpose endures, and the court ensures the assets continue serving the community.
For families who established a charitable trust years ago, this means the original intent will be honored even if the specific charity or cause no longer exists. The court to modify or court to alter the trust acts as a safeguard, keeping the donor's generosity directed toward a meaningful purpose under trust law.