Bill > HB2500

This bill, known as the "charitable organizations privacy protection act," aims to streamline and secure the transfer of property designated to charitable organizations, which are entities recognized as tax-exempt under section 501(c)(3) of the internal revenue code and registered with the secretary of state. The act establishes new procedures for "beneficiary designations," which are provisions in documents like life insurance policies or retirement accounts that name a beneficiary to receive property upon the owner's death, excluding wills and trusts. If the holder of property, such as a financial institution or insurance company, is notified of an owner's death, they must inform any named charitable organization within 10 business days that they may have a claim to the property. Charitable organizations can then submit an affidavit, along with supporting documents like their IRS determination letter and proof of the decedent's death, to claim the property. Crucially, the bill prohibits holders of property from requesting unnecessary personal identifying information from individuals associated with the charitable organization, such as social security numbers or home addresses, and also prevents them from imposing unreasonable conditions on payment, like requiring co-beneficiaries to claim simultaneously. Holders of property are protected from liability if they act in good faith based on the provided affidavit, and if they fail to comply with these provisions, the charitable organization can take legal action to compel compliance or seek damages, including civil penalties and attorney fees.

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https://app.leg.wa.gov/billsummary?BillNumber=2500&Year=2025&Initiative=false