Charitable asset transfer updates amended, advanced

A measure intended to streamline the transfer of assets left to charitable organizations after a person dies received first-round approval March 12.

LB758, introduced by Elkhorn Sen. R. Brad von Gillern, would allow a charitable organization to claim certain assets left to it — such as funds in financial accounts, retirement plans, insurance policies or other payable-on-death transfers — by submitting a sworn affidavit and basic documentation.

Required documentation would include proof of the organization’s nonprofit status, proof that the person who owned the property has died and proof that the person signing the affidavit is authorized to act on the charity’s behalf.

The proposal also addresses nontestamentary transfers on death, which are assets that pass directly to a named beneficiary without going through a will or probate court. LB758 would create a statutory process allowing charitable beneficiaries to request information about the property and claim it directly from the person or institution holding the asset.

Von Gillern said the transfer process can be slow and complicated when individuals leave assets to charities. Some financial institutions require charities to open accounts and provide personal information from staff or board members, he said, causing delays that can leave organizations waiting months or even up to a year to receive donations.

LB758 aims to remove those barriers and allow charities to receive the assets more quickly, von Gillern said, so that funds can be used for their intended charitable purposes.

A Judiciary Committee amendment, adopted 30-0, replaced the bill with a modified version of the proposal.

The amendment would require affidavits to include the decedent’s name and address, a description of the property, the charity’s contact information, a statement confirming the organization’s entitlement to the asset and other supporting documentation.

Among other provisions, the amendment also would revise compliance timelines, prohibit charities from being required to open accounts or provide personal information from staff or board members and define “reasonable delay” to include situations in which a transfer is subject to a court order or would violate certain federal banking laws or Securities and Exchange Commission self-regulatory rules.

Lincoln Sen. Carolyn Bosn, chairperson of the Judiciary Committee, said the amendment also would make technical changes to motor vehicle title statutes, allowing county treasurers to accept an affidavit as proof of ownership when transferring a vehicle, manufactured home or mobile home that is left to a charity.

The change would not create a new type of vehicle transfer, she said, but would ensure the affidavit process works with the existing county title system and avoids delays or confusion.

Following adoption of the committee amendment, senators voted 32-0 to advance LB758 to select file.