Charitable Trusts

Question 1

DISTINCTIVE RULES APPLY TO CHARITABLE TRUSTS

Answer 1

The rules are basically the same for private and charitable trusts, but the rules governing charitable trusts differ from those applicable to private trusts in three important ways: a charitable trust must
have indefinite beneficiaries, it may be perpetual, and the cy pres doctrine applies.

Question 2

CY PRES

Answer 2

What happens when the trustee cannot carry out the trust as written? When a charitable purpose selected by the settlor is impracticable, unlawful, impossible to achieve, or wasteful, the court may select an alternative under the doctrine of cy pres, which means “as near as possible,” by ascertaining the settlor’s primary purpose. This doctrine applies to outright charitable gifts as well as to charitable trusts.