Washington State
House of Representatives
Office of Program Research
BILL
ANALYSIS
Civil Rights & Judiciary Committee
HB 2500
Brief Description: Protecting charitable organizations and ensuring the timely and secure transfer of property designated to them.
Sponsors: Representatives Volz, Leavitt, Nance, Chase and Hill.
Brief Summary of Bill
  • Specifies the responsibilities of a property holder with regard to transfers of property to a charitable organization designated as a beneficiary in an instrument other than a will or a trust.  
Hearing Date: 1/28/26
Staff: Yelena Baker (786-7301).
Background:

A beneficiary is a person or entity, such as a charitable organization, legally designated to receive an asset or property when the owner of that asset or property dies.  Beneficiaries may be named on bank and brokerage accounts, insurance policies, and retirement accounts.   

 

Under state law, a "charitable organization" means any entity that solicits or collects contributions that are used to support a charitable purpose, including any religious, scientific, humanitarian, environmental, civic, literary or educational purpose, or any other purpose that is beneficial to the community. 
Summary of Bill:

A holder of the property with a beneficiary designation must provide written notice to each charitable organization listed under the beneficiary designation no later than 10 days after the death of the property's owner.  The notice must include instructions for how to submit a claim or inquiry regarding the designated property.

 

To obtain the property or information regarding the property, a charitable organization designated as a beneficiary may present to the holder of property an affidavit that contains specified information, including a general description of the property, to the extent known, and a statement that no other person has a superior right to the property.  The affidavit may request that the property be transferred or information released to the charitable organization.

 

If an affidavit requests the transfer of ownership of the property to the charitable organization, a holder of property must transfer the property directly to the charitable organization within 30 days of receiving the affidavit.   

 

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;
  • require the charitable organization to open an account or become a customer of the financial institution or insurance company;
  • require cobeneficiaries to submit claims simultaneously; or
  • delay payment to any cobeneficiary if other cobeneficiaries have not submitted their claim documentation.  

 

A charitable organization may bring an action to compel compliance or obtain damages against a holder of property who fails to deliver the required notice or transfer the property.  The court may award actual damages, court costs, a civil penalty between $500 and $10,000, and reasonable attorneys' fees.
Appropriation: None.
Fiscal Note: Not requested.
Effective Date: The bill takes effect 90 days after adjournment of the session in which the bill is passed.