35-15-413 - Cy pres. - Tennessee Statutes

35-15-413. Cy pres.

(a)  Except as otherwise provided in subsection (b), if a particular charitable purpose becomes unlawful, impracticable, impossible to achieve, or wasteful:

     (1)  The trust does not fail, in whole or in part;

     (2)  The trust property does not revert to the settlor or the settlor's successors in interest; and

     (3)  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 charitable purposes.

(b)  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 under subsection (a) to apply cy pres to modify or terminate the trust only if, when the provision takes effect:

     (1)  The trust property is to revert to the settlor and the settlor is still living; or

     (2)  Fewer than twenty-one (21) years have elapsed since the date of the trust's creation.

[Acts 2004, ch. 537, § 35.]