RULE OF CY PRES Meaning and
Definition
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The rule of cy pres, derived from the French term "cy pres comme possible" meaning "as near as possible," is a legal principle that allows a court to interpret and modify the terms of a charitable trust when it becomes impossible or impracticable to fulfill its original purpose. This rule serves to prevent the funds or assets of a charitable trust from being wasted or becoming inactive due to changed circumstances or the lapse of time.
Under the rule of cy pres, a court has the authority to modify the terms of a charitable trust to ensure that its underlying charitable intent is still achieved. The court considers alternative options that most closely align with the original purpose of the trust, aiming to maintain the spirit and general charitable objective that the settlor had intended.
When applying the rule of cy pres, the court considers various factors such as the original purpose of the trust, the settlor's intent, the circumstances that led to the trust's impracticability, and the availability of alternative charitable applications. The court's decision is typically based on equitable principles, ensuring fairness to all parties involved.
In practice, the rule of cy pres is invoked when a charitable trust becomes obsolete, as in cases where the designated beneficiaries no longer exist, the charitable purpose is no longer possible, or there are excess funds that could be redirected to another charitable purpose. This flexibility allows courts to adapt the terms of the trust to align with the evolving needs of society and best serve the public interest.
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