Bill would force timely notice and transfer of beneficiary-designated assets to charities
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Summary
House Bill 2500 would require holders of beneficiary-designated property to notify listed charities within 10 days of learning of a donor's death, accept a standardized affidavit, and transfer property within 30 days; charities and legacy officers urged passage while financial institutions warned of fraud and operational concerns.
House Bill 2500 would change how charities learn about and receive beneficiary-designated gifts such as retirement or brokerage accounts.
Deanna Baker, committee staff, said the bill requires holders of property named by beneficiary designation to notify each listed charitable beneficiary no more than 10 days after learning of the account owner's death, provide claim instructions, accept an affidavit containing specified information, and transfer the property within 30 days of receiving a valid affidavit. The bill would bar holders from demanding personally identifiable information from nonprofit employees as a condition of transfer and would not require charities to open accounts as a prerequisite to payment. Charities would be able to sue to compel compliance or seek damages.
Witnesses representing Gonzaga University and community foundations recounted cases in which charities waited months or years to receive intended gifts and said some custodians require charities to become account holders before paying benefits. Credit-union and community-bank witnesses cautioned that the bill could interfere with necessary identity-verification and regulatory obligations and encouraged negotiated amendments to preserve anti-fraud safeguards while addressing delays.
Proponents urged committee action to protect donor intent and nonprofit missions; financial-sector witnesses asked for technical fixes to balance privacy, fraud prevention, and timeliness.
