SB 118: Legacy Giving to Charitable Organizations

Official summary

Abstract published by the legislature (via Open States). Text as published by the legislature; reproduced verbatim.

The act requires a bank, broker-dealer, depository institution, credit union, or financial or institutional investor (covered entity) that holds benefits that are designated by a donor to a charitable organization to pay the designated benefits no later than 60 calendar days after the charitable organization submits an affidavit attesting to the death of the donor and other information to the covered entity, except as described in federal law.     If a covered entity that holds designated benefits is unable to pay the designated benefits to a charitable organization because federal law requires the covered entity to take certain actions or satisfy certain criteria in order to pay the designated benefits, the covered entity must take the actions or satisfy the criteria that are required by federal law and comply with the act no less than 120 calendar days after the charitable organization submits the affidavit to the covered entity.     If a charitable organization receives designated benefits that concern a creditor claim, statutory allowance, or the unsatisfied balance of an elective-share or a supplemental elective-share claim (outstanding claim) for which the charitable organization may be liable, the charitable organization must return to the donor's estate a portion or all of the designated benefits in order to satisfy the outstanding claim within 60 days after receiving written notice of the liability, with certain exceptions. If the charitable organization fails to comply, it must pay statutory interest to the donor's estate for each day the unreturned amount remains outstanding. Upon receiving notice of the outstanding claim from the personal representative of the donor's estate, the charitable organization must hold all or a portion of the designated benefits in a constructive trust pending a determination of the outstanding claim. Moreover, the charitable organization may be subject to one or more court actions.     A covered entity that holds benefits that are designated to a charitable organization shall not:Require the charitable organization to establish an account with the covered entity as a condition of receiving the designated benefits; orRequire an individual employed by, or serving on the board of, the charitable organization to submit personal information as a condition of receiving designated benefits.     The act may be enforced by the division of banking, the financial services board, or the division of securities, as appropriate.(Note: This summary applies to this bill as enacted.)

Sponsors

Sponsors by party (alphabetical): Democratic 17 · Republican 2

“Support” is shown only as formal sponsorship recorded by the legislature. Roll-call votes are available on the official bill page.

Recent official actions

1. April 17, 2026Governor Signed
2. April 8, 2026Sent to the Governor
3. April 7, 2026Signed by the President of the Senate
4. April 7, 2026Signed by the Speaker of the House
5. March 27, 2026House Third Reading Passed - No Amendments
6. March 26, 2026House Second Reading Special Order - Passed - No Amendments
7. March 25, 2026House Second Reading Special Order - Laid Over Daily - No Amendments
8. March 23, 2026House Committee on Finance Refer Unamended to House Committee of the Whole
9. March 16, 2026Senate Third Reading Passed - No Amendments
10. March 16, 2026Introduced In House - Assigned to Finance
11. March 16, 2026Senate Third Reading Passed with Amendments - Committee
12. March 13, 2026Senate Second Reading Passed with Amendments - Committee

Showing 12 most recent of 14 actions. Full history