700.7413 Cy pres.
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700.7413 Cy pres.
Sec. 7413.
(1)Except as otherwise provided in subsections
(2)or (3), if a particular charitable purpose becomes unlawful, impracticable, or impossible to achieve, no alternative taker is named or provided for, and the court finds the settlor had a general, rather than a specific, charitable intent, all of the following apply:
(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.
(c)The court may apply cy pres to modify or terminate the trust by directing that the trust property be applied or distributed, in whole or in part, in a manner consistent with the settlor's general charitable intent.
(2)If the terms of a charitable trust confer a power on the trustee, or another person designated in the trust or gift, to modify or terminate either the charitable trust, a charitable gift to the trust, or the charitable purpose of the trust or gift in favor of another charitable trust, gift, or purpose, the terms of the trust prevail over the power of the court to apply cy pres to modify or terminate the trust.
(3)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 to apply cy pres to modify or terminate the trust only if, when the provision takes effect, either of the following applies:
(a)The trust property is to revert to the settlor and the settlor is still living.
(b)Less than 50 years have elapsed since the date of the trust's creation.
History: Add. 2009, Act 46 , Eff. Apr. 1, 2010
Popular Name: EPIC