Under the Cy Pres doctrine, if a charitable purpose becomes unlawful, impracticable, impossible to achieve, or wasteful, what may the court do?

• A. The trust fails, in whole or in part
• B. The trust property reverts to the settlor or the settlor's successors in interest
• C. The court may modify or terminate the trust by directing that the trust property be applied or distributed in a manner consistent with the settlor's charitable purposes
• D. The trust distributes as the trust is written anyway because it was the express wish of the settlor

Answer: (B)

Cy Pres lets a court keep the charitable gift alive by adjusting it when the original purpose can’t be carried out. If the designated charitable purpose becomes unlawful, impracticable, impossible to achieve, or wasteful, the court can modify or terminate the trust and direct that the trust assets be used in a way that aligns with what the donor intended—essentially directing the money to a different charitable use that serves the same general charitable goal.

This preserves the public-benefit nature of the gift instead of letting it fail or reverting the property to the donor. Reversion to the settlor would undermine the charitable intent and public benefit, which is why the preferred remedy is to redirect the assets to a similar charitable purpose.