Cy pres.

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(1) Except as otherwise provided in subsection (2) of this section, 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;

and

  1. The court may apply cy pres to modify or terminate the trust by directing that thetrust property be applied or distributed, in whole or in part, in a manner consistent with the settlor's charitable purposes.

(2) 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 pursuant to subsection (1) of this section to apply cy pres to modify or terminate the trust only if, when the provision takes effect:

(a) The trust property is to revert to the settlor and the settlor is still living; or (b) Fewer than twenty-one years have elapsed since the date of the trust's creation.

Source: L. 2018: Entire article added, (SB 18-180), ch. 169, p. 1164, § 1, effective January 1, 2019.


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