Bill > HB2112

This bill establishes a process for charitable organizations to claim property designated to them upon the owner's death, outside of a will or trust (known as a "beneficiary designation"). It defines what constitutes a charitable organization and a charitable purpose, generally aligning with federal tax-exempt status under section 501(c)(3) of the Internal Revenue Code, but also including other benevolent or public safety-focused entities. If the holder of property with a beneficiary designation is notified of the owner's death, they must make reasonable efforts to inform any named charitable organization within ten business days that they may be entitled to the property and provide contact information for the holder. The charitable organization can then submit an affidavit, along with supporting documents like proof of tax-exempt status and the owner's death, to claim the property. The bill also outlines what information property holders cannot request from charitable organizations, such as personal financial details or credit checks, and sets deadlines for property distribution, generally within 90 days of receiving the first complete claim. Property holders acting in good faith are protected from liability, and charitable organizations have legal recourse if property is unreasonably withheld. This new process does not apply to insurance policies or annuity contracts.