wa-law.org > bill > 2025-26 > SB 5887 > Original Bill

SB 5887 - Transfers to charities

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Section 1

This act may be known and cited as the charitable organizations privacy protection act.

Section 2

The legislature finds that charitable organizations play a vital role in serving the people of Washington and that they are often named as beneficiaries in nonprobate instruments such as life insurance policies, retirement accounts, and other beneficiary designations.

The legislature further finds that these organizations have faced unnecessary administrative delays and improper requests for personal information unrelated to the transfer of property.

It is the intent of the legislature to protect the privacy of individuals affiliated with charitable organizations, to promote efficient transfers of property to charitable beneficiaries, and to ensure that the intent of decedents who make charitable gifts through beneficiary designations is fulfilled.

Section 3

The definitions in this section apply throughout this chapter unless the context clearly requires otherwise.

  1. "Beneficiary designation" means a provision in an instrument, other than a will or a trust, designating a beneficiary to receive an interest in property at the owner's death. The term includes, but is not limited to:

    1. An annuity or insurance policy;

    2. An account with a designation for payment on death;

    3. A security registered in beneficiary form;

    4. A pension, profit-sharing, retirement, or other employment-related benefit plan; or

    5. Any other nonprobate transfer at death.

  2. "Charitable organization" means any entity recognized as exempt from federal income tax under section 501(c)(3) of the internal revenue code and registered as a charitable organization with the secretary of state under chapter 19.09 RCW.

  3. "Holder of property" means any person, financial institution, transfer agent, insurance company, or other entity in possession of, or responsible for, property subject to a beneficiary designation.

Section 4

  1. If the holder of property that has a beneficiary designation has been notified of the death of the owner of the property, the holder of the property shall, within 10 business days, provide written notice to each charitable organization listed under the beneficiary designation that the charitable organization may have a right to the property.

  2. The notice must include the name and contact information of the holder of the property and instructions for how to submit a claim or inquiry regarding the designated property.

Section 5

  1. A charitable organization designated as a beneficiary in a beneficiary designation may present an affidavit to the holder of property or to any person with information about the property to obtain the property or information regarding the property.

  2. The affidavit must include:

    1. The decedent's name and last known address;

    2. A general description of the property, to the extent known;

    3. The charitable organization's name, address, and primary contact information;

    4. A statement that the organization is a charitable organization as defined in this chapter;

    5. A request that the property be transferred or information released to the charitable organization;

    6. A statement that no other person has a superior right to the property; and

    7. A declaration under penalty of perjury that the information in the affidavit is true and correct.

  3. The affidavit must be accompanied by:

    1. A copy of the organization's internal revenue service determination letter;

    2. A certificate of existence issued by the secretary of state;

    3. Verification of the decedent's death, such as a death certificate, a published notice of probate, proof of payment of the decedent's funeral expenses, a newspaper obituary article, or a published death notice;

    4. Evidence of the affiant's authority to act on behalf of the organization; and

    5. A completed internal revenue service form W-9 for the organization.

Section 6

  1. A holder of property may not request or require any personal identifying information from any individual employed by or serving on the governing board of a charitable organization as a condition of transferring property or releasing information under this chapter.

  2. For purposes of this section, "personal identifying information" includes, but is not limited to:

    1. Social security numbers or driver's license numbers;

    2. Contact information;

    3. Personal financial information;

    4. Dates of birth;

    5. Passports;

    6. Home addresses;

    7. Home phone numbers;

    8. Annual income, including child support;

      1. Value of personal assets and source of wealth;

    9. Credit checks;

    10. Criminal background checks;

    11. Marital status;

    12. Number of dependents; and

    13. Spouse's maiden name.

Section 7

The holder of property shall not:

  1. Require the charitable organization to open an account or otherwise become a customer of the financial institution or insurance company;

  2. Require co-beneficiaries to submit claims simultaneously or impose coordination deadlines among co-beneficiaries; or

  3. Delay payment to any co-beneficiary if other co-beneficiaries have not submitted their claim documentation.

Section 8

  1. A holder of property that receives an affidavit meeting the requirements of this chapter shall, within 30 days, ensure that the property be paid, delivered, or transferred directly to the charitable organization if the affidavit has requested the transfer of ownership of the property to the charitable organization.

  2. A holder of property or person acting in good faith in reliance on an affidavit under this chapter is not liable to any person for acting on the affidavit and may assume without inquiry the truth of the facts stated in the affidavit.

  3. A transaction entered into by a charitable organization in reliance on property received under this chapter is valid notwithstanding any later misapplication by the charitable organization.

Section 9

  1. If the holder of property fails to transfer the property, provide the requested information, or deliver required notice under this chapter, the charitable organization may bring an action in superior court to compel compliance or obtain damages.

  2. The court may award:

    1. Actual damages;

    2. Court costs;

    3. A civil penalty between $500 and $10,000; and

    4. Reasonable attorneys' fees.

  3. An action under this section must be commenced within one year after the date of the act or failure to act.

Section 10

This chapter must be liberally construed to protect the privacy of charitable organizations and to promote the prompt and secure transfer of property to charitable beneficiaries.

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