What is the cy pres doctrine law?
In the context of charities, the cy-près doctrine allows the wishes of a donor to charity to be carried out even if the original purpose of the gift has failed. For the doctrine to apply, the new purpose should be as close as possible to the original purpose.
Why is the cy pres doctrine?
Cy pres doctrine is a legal concept that gives courts the power to interpret the terms of a will, gift, or charitable trust. This doctrine will become active if the intended wishes or conditions of the original document cannot be carried out, be legitimately interpreted literally, or legally performed.
Does cy pres apply to wills?
The cy pres doctrine is a flexible approach to wills and trusts designed to honor the testator’s intent. Cy pres is never used to change the dispositive provisions, however. This means the court can’t use it to change a beneficiary on its own.
What is cy pres distribution?
What is a cy pres distribution? When that is so, the cy pres doctrine allows the funds to be distributed to a nonprofit charitable organization to support work that indirectly benefits the class and advances the public interest.
What is a cy pres application?
Cy-pres applications (or ‘near to’) allow the wishes of a donor to a charity to be carried out even when the original purpose of the gift has failed. It is a requirement when making a cy-press application that the new purpose of the gift should be as close as possible to the original purpose.
What is the purpose of a charitable trust?
A charitable trust is essentially a way to set up your assets to benefit you, your beneficiaries and a charity — all at the same time. A charitable trust could offer many financial advantages for philanthropically minded individuals with nonessential assets, such as stocks or real estate.
Why is there a rule against perpetuities?
The purpose of the rule against perpetuities was and is to prevent property interests from being tied up for generations after a trustor’s death. Thus, a provision in a trust that grants a property interest to a person who will be born several generations in the future will usually be invalid under the rule.
What is anti lapse statute?
An anti-lapse statute is a rule of construction in trusts and estates law. If a testator devises a gift to a person in his will and the devisee predeceases the testator, the anti-lapse statute will allow the gift to pass on to the devisee’s descendants rather than force the gift to pass through intestacy.
What is a cy pres payment?
The term “cy pres” comes from a French term meaning “as near as possible.” So-called “cy pres” awards are designated when there are residual funds in class action lawsuits, probate matters, and other court cases that cannot be distributed to the class members or beneficiaries for a variety of reasons.
What is a cy pres award?
When do courts use the cy pres doctrine?
The cy pres doctrine is used by courts to distribute charitable gifts when the intended beneficiary of the gift is unavailable or the bequest is no longer feasible. The term “cy pres” essentially means “as near as possible.”
What does the term cy pres stand for?
The term “cy pres” essentially means “as near as possible.” Rather than invalidate the charitable gift, the court can select a new beneficiary that closely corresponds to the original intent of the donor.
How is the cy pres doctrine used in class action settlements?
The cy pres doctrine has also been applied in the distribution of class action settlement awards, where either funds go unclaimed or distributing the funds to every individual class member is not cost-effective.