Cy-près doctrine in English law
Doctrine concerning charitable trusts / From Wikipedia, the free encyclopedia
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The cy-pres doctrine in English law is an element of trusts law that deals with charitable trusts. The doctrine states that when such a trust has failed because its purposes are either impossible or cannot be fulfilled, the High Court of Justice or the Charity Commission can issue an order redirecting the trust's funds to the nearest possible purpose. For charities worth under £5,000 and without land, the trustees (by a two-thirds majority) may decide to redirect the trust's funds. The doctrine was initially part of ecclesiastical law, originating from the Norman French phrase cy près comme possible (as close as possible), but similar and possibly ancestral provisions have been found in Roman law, both in the Corpus Juris Civilis and later Byzantine law.
Trusts to which the doctrine is applicable are divided into two groups: those with subsequent failure, where the trust's purpose has failed after coming into operation, and initial failure, where the trust's purposes are immediately invalid. Subsequent failure cases simply require redirecting the funds to the nearest possible purpose, as there's no question of allowing the settlor's next of kin to inherit the money. However, initial failure cases require a decision not only on whether the purpose has failed, but also on whether the funds should be subject to cy-près or returned to the estate in a resulting trust. This decision is based on the charitable intention of the settlor, which is determined based on the facts of each individual case.