SPONSOR: Reuter
This bill creates the Charitable Organization Privacy Protection Act, which establishes a process for handling property with a 501(c)(3) charitable organization as a beneficiary in nonprobate instruments like insurance policies, retirement accounts, or death-designated accounts.
The bill requires property holders to notify a charitable beneficiary within 30 business days of the owner's death, providing basic information about the property. Charitable organizations can then submit a detailed affidavit requesting either the property itself or information about the property, which must include documentation like their tax-exempt status and good standing certificate.
The bill restricts property holders from requiring additional personal information about the charity's employees or board members and prohibits them from imposing unreasonable conditions on the transfer.
If a property holder fails to respond appropriately, the charitable organization can sue to recover the property or information, potentially receiving damages, penalties between $500 and $10,000, and attorney's fees.
The legislation also protects property holders who act in good faith when transferring property or information based on the charity's affidavit, providing them immunity from liability if they make an honest mistake.
Statutes affected: