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Bill to speed transfers of charitable bequests gets stakeholder amendments
Summary
Sen. Brad Von Gillern’s LB 758 would let charities present an affidavit to claim non-testamentary gifts (IRAs, brokerage accounts) to speed transfers; proponents cited months-long delays and asked for protections for institutions; bankers and the State Bar negotiated technical amendments.
Sen. Brad Von Gillern told the Judiciary Committee LB 758 is intended to streamline the process for transferring non-testamentary charitable gifts so nonprofits receive donations promptly without requiring board members or staff to provide unnecessary personal information.
"Under 758, a charitable organization can present an affidavit ... and if the necessary documents are furnished, the party holding the property is legally required to turn it over within a specified window of time," Von Gillern said. He noted an amendment under negotiation to exempt insurance products and to clarify a delivery window that had been set at 30 days.
Charitable organization representatives described lengthy delays. Jeremy Belsky, director of gift and estate planning at Boys Town, said the average time from donor death to receipt of funds for Boys Town was about 12 months and that administrative friction and repeated requests for personal data by brokerages caused delays. Corby Gilbertson, appearing for Father Flanagan's Boys Home, said stakeholders were still finalizing three amendment changes addressing liability protections for institutions, permissible delays, and insurance-product carve-outs.
Banking and legal stakeholders raised technical concerns. The Nebraska State Bar Association and the Nebraska Bankers Association pointed to complexities when trusts, multiple beneficiaries or creditors claims exist and welcomed the circulated amendment language that copies provisions from Nebraska’s small-estate affidavit statute and accommodates federal requirements for certain investment accounts. After negotiation, the Nebraska Bankers Association said it was neutral on the amended bill.
Sen. Von Gillern said he expected a final amendment soon and asked the committee to advance LB 758 once stakeholders agree on technical language.
