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Estate Planning Newsletter

  • Revocable & Irrevocable Trusts
    Unlike a will or some other types of trusts, which take effect upon the death of their creator, a “living trust” or “inter vivos trust” comes into effect during its creator’s lifetime. The creator of a... Read more.
  • Probate
    Probate, a Latin term meaning “to prove the will,” is a court-supervised process that settles a person’s affairs after death. To ensure that the decedent’s final matters and wishes are handled correctly... Read more.
  • Transferring Assets to Minors-Custodial Accounts
    Minors have no legal capacity to manage property. Thus, transferring property and other assets to minors can be problematic. For example, parents or other adults may wish to convey a small amount of property to a minor without investing... Read more.
  • Deductibility of Property Donated to a Charitable Organization
    The U.S. government has long encouraged citizens to contribute to charity. One method of encouraging philanthropic giving is the allowance of deductions from income for federal tax purposes for donations to “qualified”... Read more.
Estate Planning News Links

The Cy Pres Rule

If you create an estate planning document leaving property to a charity, but after your death the transfer cannot occur, the court may apply the cy pres rule.

The words “cy pres” are French for “as near.” If your charitable wishes cannot be achieved, the court uses this doctrine to attempt to fulfill your wishes as near to your original wishes as possible.

Why a Gift May Be Non-Transferable

Your charitable gift may not be transferable to your chosen charity because that charity:

  • Refuses to accept it
  • Could not be identified
  • No longer exists on the date of your death

Additionally, a gift may not be possible due to the fact that you:

  • Identified more than one charity in an ambiguous manner
  • Failed to name a specific charity as recipient
  • Failed to specify a charitable purpose

Under cy pres, when your charitable gift cannot be transferred to the organization specified in your trust, it may be given to a related charity that has a related charitable purpose.

Limited Application

The cy pres rule typically will not be applied unless there is no way your particular charitable purpose is possible. Courts are reluctant to second guess intent, so the rule may not be applied if you have not clearly articulated a charitable intent.

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