Bill > SB2642

This bill establishes a new process for charitable organizations to claim property designated to them upon the owner's death, specifically for assets that do not go through probate, such as accounts with a "payment on death" designation or securities registered in beneficiary form. It defines "charitable organization" broadly to include entities recognized as tax-exempt by the IRS under section 501(c)(3) of the Internal Revenue Code, as well as other benevolent, educational, or philanthropic groups that solicit public contributions. The bill requires the holder of such property, like a bank or financial institution, to notify a named charitable beneficiary within ten business days of being informed of the owner's death. The charitable organization can then submit an affidavit, along with supporting documents like its tax-exempt status letter and proof of the owner's death, to claim the property. The bill also outlines what information financial institutions cannot request from charitable organizations, such as personal financial details of their representatives, and sets deadlines for property distribution, generally within 90 days of receiving the first complete claim, with provisions for disputes. If a property holder unreasonably refuses to release the property, the charitable organization can sue to recover it and may be awarded damages and legal fees. This new process, which takes effect on July 1, 2026, does not apply to insurance policies or annuity contracts.