Cy Pres Applied
The decedent’s will created two charitable trusts, one for each of two hospitals both of which were referred to by name and location. One of the hospitals was acquired by a for-profit corporation and could no longer be the recipient of trust distributions. The trial court ordered that the trust income be paid to the other hospital.
On appeal, the court upheld the use of cy pres but vacated the decree directing payment, holding that permissible recipients of the trust income must provide health services in the same geographic area served by the former not-for-profit hospital.
In re Estate of Elkins, No. 425 EDA 2005, 2005 WL 2933471 (Pa. Super. Ct. 2005).
Special thanks to Rita and Joseph Solomon Prof. William P. LaPiana of the New York Law School for contributing this case.