Cy pres

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  1. (a) Except as otherwise provided in subsection (b), if a particular charitable purpose becomes unlawful, impracticable, impossible to achieve, or wasteful:

    1. (1) the trust does not fail, in whole or in part;

    2. (2) the trust property does not revert to the settlor or the settlor's successors in interest; and

    3. (3) a 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.

  2. (b) 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 a court under subsection (a) to apply cy pres to modify or terminate the trust only if, when the provision takes effect:

    1. (1) the trust property is to revert to the settlor and the settlor is still living; or

    2. (2) less than thirty (30) years have elapsed since the date of the trust's creation.


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