75-7-413 - Cy pres.
75-7-413. Cy pres.
(1) Except as otherwise provided in Subsection (2), if a particular charitable purposebecomes unlawful, impracticable, impossible to achieve, or wasteful:
(a) the trust does not fail, in whole or in part;
(b) the trust property does not revert to the settlor or the settlor's successors in interest;and
(c) the court may apply cy pres to modify or terminate the trust by directing that the trustproperty be applied or distributed, in whole or in part, in a manner consistent with the settlor'scharitable purposes.
(2) A provision in the terms of a charitable trust that would result in distribution of thetrust property to a noncharitable beneficiary prevails over the power of the court underSubsection (1) to apply cy pres to modify or terminate the trust only if, when the provision takeseffect:
(a) the trust property is to revert to the settlor and the settlor is still living; or
(b) fewer than 21 years have elapsed since the date of the trust's creation.
Enacted by Chapter 89, 2004 General Session