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SENATE BILL 26-118
BY SENATOR(S) Coleman and Simpson, Ball, Cutter, Daugherty, Frizell,
Gonzales J., Jodeh, Kipp, Kolker, Marchman, Snyder;
also REPRESENTATIVE(S) Clifford, Bacon, Boesenecker, Camacho,
Froelich, Lindsay, Nguyen, Rutinel.
CONCERNING THE PAYMENT OF DESIGNATED BENEFITS TO A CHARITABLE
ORGANIZATION UPON THE DEATH OF A DONOR.
Be it enacted by the General Assembly of the State of Colorado:
SECTION 1. In Colorado Revised Statutes, add 15-15-104 as
follows:
15-15-104. Payment of designated benefits to charitable
organizations - timeline - affidavits - conditional requirements
prohibited - enforcement - definitions.
(1) A S USED IN THIS SECTION , UNLESS THE CONTEXT OTHERWISE
REQUIRES:
(a) "BENEFITS" MEANS:
NOTE: This bill has been prepared for the signatures of the appropriate legislative
officers and the Governor. To determine whether the Governor has signed the bill
or taken other action on it, please consult the legislative status sheet, the legislative
history, or the Session Laws.
________
Capital letters or bold & italic numbers indicate new material added to existing law; dashes
through words or numbers indicate deletions from existing law and such material is not part of
the act.
(I) PROCEEDS PAYABLE UPON DEATH PURSUANT TO AN ANNUITY OR
INSURANCE POLICY;
(II) A SAVINGS OR CHECKING ACCOUNT WITH A
PAYABLE-UPON-DEATH DESIGNATION;
(III) A SECURITY REGISTERED IN BENEFICIARY FORM WITH A
PAYABLE-UPON-DEATH DESIGNATION; OR
(IV) PROCEEDS PAYABLE UPON DEATH PURSUANT TO A PENSION OR
A PROFIT -SHARING, A RETIREMENT , OR OTHER EMPLOYMENT -RELATED
BENEFIT PLAN.
(b) "CHARITABLE ORGANIZATION" HAS THE MEANING SET FORTH IN
SECTION 39-26-102 (2.5).
(c) "COVERED ENTITY" MEANS:
(I) A BANK, AS DEFINED IN SECTION 11-51-201 (1);
(II) A BROKER-DEALER, AS DEFINED IN SECTION 11-51-201 (2);
(III) A DEPOSITORY INSTITUTION, AS DEFINED IN SECTION 11-51-201
(5);
(IV) A CREDIT UNION, AS DEFINED IN SECTION 11-30-101 (1)(a); OR
(V) A FINANCIAL OR INSTITUTIONAL INVESTOR , AS DEFINED IN
SECTION 11-51-201 (6).
(d) "D ESIGNATED BENEFITS " MEANS BENEFITS THAT ARE
DESIGNATED TO BE TRANSFERRED TO A CHARITABLE ORGANIZATION UPON
THE DEATH OF AN INDIVIDUAL.
(e) "IRS" MEANS THE FEDERAL INTERNAL REVENUE SERVICE.
(2) (a) UNLESS A COURT HAS ORDERED OTHERWISE, AND EXCEPT AS
MAY BE PROVIDED OTHERWISE BY FEDERAL LAW AND BY SUBSECTION (2)(c)
OF THIS SECTION , A COVERED ENTITY THAT HOLDS DESIGNATED BENEFITS
SHALL PAY THE DESIGNATED BENEFITS TO THE CHARITABLE ORGANIZATION
PAGE 2-SENATE BILL 26-118
NOT LATER THAN SIXTY CALENDAR DAYS AFTER THE CHARITABLE
ORGANIZATION SUBMITS TO THE COVERED ENTITY AN AFFI DAVIT THAT
ATTESTS TO THE DEATH OF THE DONOR AND INCLUDES THE FOLLOWING
INFORMATION:
(I) THE DONOR'S NAME AND LAST-KNOWN ADDRESS;
(II) A GENERAL DESCRIPTION OF THE DESIGNATED BENEFITS;
(III) THE CHARITABLE ORGANIZATION'S NAME, ADDRESS, TELEPHONE
NUMBER, AND INTERNET WEBSITE ADDRESS, IF ANY;
(IV) A COPY OF THE CHARITABLE ORGANIZATION 'S IRS
DETERMINATION LETTER;
(V) A COPY OF THE CHARITABLE ORGANIZATION'S IRS FORM W-9,
SIGNED BY A DULY AUTHORIZED REPRESENTATIVE OF THE CHARITABLE
ORGANIZATION;
(VI) A REQUEST THAT THE DESIGNATED BENEFITS BE PAID OR
TRANSFERRED TO THE CHARITABLE ORGANIZATION IN ACCORDANCE WITH
THIS SECTION, INCLUDING INSTRUCTIONS ON WHERE AND HOW TO REMIT
PAYMENT;
(VII) A COPY OF THE DEATH CERTIFICATE ; EXCEPT THAT , IF THE
COVERED ENTITY HAS ALREADY RECEIVED NOTICE OF THE DONOR'S DEATH,
THIS REQUIREMENT DOES NOT APPLY;
(VIII) A STATEMENT THAT THE INFORMATION PROVIDED IN THE
AFFIDAVIT IS TRUE AND CORRECT;
(IX) A SIGNATURE FROM A DULY AUTHORIZED REPRESENTATIVE OF
THE CHARITABLE ORGANIZATION;
(X) A COPY OF THE CHARITABLE ORGANIZATION 'S CORPORATE
RESOLUTIONS CERTIFYING THAT THE SIGNATORY OF THE AFFIDAVIT IS
AUTHORIZED TO ACT ON BEHALF OF THE CHARITABLE ORGANIZATION; AND
(XI) A WAIVER SIGNED BY A DULY AUTHORIZED REPRESENTATIVE OF
THE CHARITABLE ORGANIZATION , STATING THAT THE CHARITABLE
PAGE 3-SENATE BILL 26-118
ORGANIZATION ACKNOWLEDGES AND AGREES TO THE FOLLOWING:
(A) T HE DESIGNATED BENEFITS MAY CONCERN CREDITOR CLAIMS
AGAINST THE DONOR'S PROBATE ESTATE AND STATUTORY ALLOWANCES TO
THE DONOR'S SPOUSE AND CHILDREN, FOR WHICH CLAIMS AND ALLOWANCES
THE CHARITABLE ORGANIZATION MAY BE LIABLE IF THE DONOR'S ESTATE IS
INSUFFICIENT TO SATISFY THOSE CLAIMS AND ALLOWANCES , UNLESS THE
DESIGNATED BENEFITS ARE SPECIFICALLY EXCEPTED UNDER SECTION
15-15-103 (1)(b);
(B) T HE DESIGNATED BENEFITS MAY CONCERN THE UNSATISFIED
BALANCE OF A SURVIVING SPOUSE 'S ELECTIVE -SHARE OR SUPPLEMENTAL
ELECTIVE-SHARE CLAIM UNDER SECTION 15-11-209 (3), FOR WHICH CLAIM
THE CHARITABLE ORGANIZATION MAY BE LIABLE IF THE DONOR'S ESTATE IS
INSUFFICIENT TO PAY SUCH CLAIM; AND
(C) A PROCEEDING UNDER SECTION 15-15-103 MUST BE COMMENCED
WITHIN THE TIME FRAME DESCRIBED IN SECTION 15-15-103 (8), AND A
SURVIVING SPOUSE MUST FILE AN ELECTION FOR AN ELECTIVE-SHARE CLAIM
WITHIN THE TIME LIMITS SET FORTH IN SECTION 15-11-211.
(b) I F AN INDIVIDUAL WHO IS THE SIGNATORY OF AN AFFIDAVIT
DESCRIBED IN SUBSECTION (2)(a) OF THIS SECTION SUBMITS THE AFFIDAVIT
TO A COVERED ENTITY IN PERSON, THE COVERED ENTITY MAY REQUIRE THE
INDIVIDUAL TO PRESENT A VALID , GOVERNMENT -ISSUED FORM OF
IDENTIFICATION THAT IDENTIFIES THE INDIVIDUAL AS THE SIGNATORY OF THE
AFFIDAVIT.
(c) I F A COVERED ENTITY THAT HOLDS DESIGNATED BENEFITS IS
UNABLE TO PAY THE DESI GNATED BENEFITS TO A CHARITABLE
ORGANIZATION AS REQUIRED BY SUBSECTION (2)(a) OF THIS SECTION
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 SHALL TAKE SUCH ACTIONS OR SATISFY
SUCH CRITERIA AND COMPLY WITH SUBSECTION (2)(a) OF THIS SECTION NOT
LESS THAN ONE HUNDRED TWENTY DAYS AFTER THE CHARITABLE
ORGANIZATION SUBMITS TO THE COVERED ENTITY AN AFFIDAVIT THAT
SATISFIES THE REQUIREMENTS OF SUBSECTION (2)(a) OF THIS SECTION.
(3) I F A CHARITABLE ORGANIZATION RECEIVES DESIGNATED
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BENEFITS FOR WHICH THE CHARITABLE ORGANIZATION IS LIABLE UNDER
SECTION 15-15-103 OR 15-11-209, THE CHARITABLE ORGANIZATION SHALL
RETURN TO THE DONOR 'S ESTATE A PORTION OR ALL OF THE DESIGNATED
BENEFITS IN ORDER TO SATISFY THE ALLOWED CLAIMS , STATUTORY
ALLOWANCES, OR UNSATISFIED BALANCE OF THE ELECTIVE -SHARE OR
SUPPLEMENTAL ELECTIVE -SHARE CLAIM WITHIN SIXTY DAYS AFTER
RECEIVING WRITTEN NOTICE FROM THE PERSONAL REPRESENTATIVE OF THE
DONOR'S ESTATE. IF THE CHARITABLE ORGANIZATION FAILS TO COMPLY WITH
THE PROVISIONS OF THIS SUBSECTION (3), THE CHARITABLE ORGANIZATION
SHALL PAY STATUTORY INTEREST, AS DESCRIBED IN SECTION 5-12-102, TO
THE DONOR'S ESTATE FOR EACH DAY THE UNRETURNED AMOUNT REMAINS
OUTSTANDING. MOREOVER, THE CHARITABLE ORGANIZATION MAY BE
SUBJECT TO ONE OR MORE OF THE FOLLOWING:
(a) A N ACTION TO AVOID THE INITIAL PA YOUT TO THE EXTENT
NECESSARY TO SATISFY THE ALLOWED CLAIMS, STATUTORY ALLOWANCES,
OR UNSATISFIED BALANCE OF THE ELECTIVE -SHARE OR SUPPLEMENTAL
ELECTIVE-SHARE CLAIM;
(b) A N INJUNCTION AGAINST THE CHARITABLE ORGANIZATION 'S
DISPOSITION OF THE DESIGNATED BENEFITS, OR ANY PORTION THEREOF, OR
ANY ASSET OR PROPERTY OF THE CHARITABLE ORGANIZATION;
(c) AN ATTACHMENT OR OTHER PROVISIONAL OR JUDICIAL REMEDY
AGAINST THE DESIGNATED BENEFITS OR ANY OTHER ASSET OR PROPERTY OF
THE CHARITABLE ORGANIZATION; AND
(d) A NY OTHER RELIEF THE COURT DETERMINES IS APPROPRIATE ,
INCLUDING THE AWARDING OF REASONABLE ATTORNEY FEES.
(4) UPON THE CHARITABLE ORGANIZATION 'S RECEIPT OF WRITTEN
NOTICE OF A POTENTIAL UNSATISFIED CLAIM, STATUTORY ALLOWANCE, OR
ELECTIVE-SHARE OR SUPPLEMENTAL ELECTIVE -SHARE CLAIM FROM THE
PERSONAL REPRESENTATIVE OF THE DONOR 'S ESTATE , THE CHARITABLE
ORGANIZATION SHALL HOLD THE DESIGNATED BENEFITS RECEIVED, OR THE
PORTION THEREOF NEEDED TO COVER THE PENDING CLAIM , STATUTORY
ALLOWANCE, OR ELECTIVE -SHARE OR SUPPLEMENTAL ELECTIVE -SHARE
CLAIM, IN A CONSTRUCTIVE TRUST PENDING THE DETERMINATION OF THE
CLAIM, STATUTORY ALLOWANCE, OR ELECTIVE-SHARE OR SUPPLEMENTAL
ELECTIVE-SHARE CLAIM.
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(5) A COVERED ENTITY THAT HOLDS DESIGNATED BENEFITS SHALL
NOT:
(a) R EQUIRE THE CHARITABLE ORGANIZATION TO ESTABLISH AN
ACCOUNT WITH THE COVERED ENTITY AS A CONDITION OF RECEIVING THE
DESIGNATED BENEFITS; OR
(b) R EQUIRE AN INDIVIDUAL EMPLOYED BY , OR SERVING ON THE
BOARD OF , THE CHARITABLE ORGANIZATION TO SUBMIT ANY PERSONAL
INFORMATION, INCLUDING A SOCIAL SECURITY NUMBER, A DRIVER'S LICENSE
NUMBER, OR PERSONAL FINANCIAL INFORMATION , AS A CONDITION OF
RECEIVING DESIGNATED BENEFITS, EXCEPT AS REQUIRED BY SUBSECTION (2)
OF THIS SECTION.
(6) T HIS SECTION MAY BE ENFORCED BY ANY OF THE FOLLOWING
ENTITIES, AS APPROPRIATE:
(a) THE DIVISION OF BANKING CREATED IN SECTION 11-102-101;
(b) T HE FINANCIAL SERVICES BOARD CREATED IN SECTION
11-44-101.6; OR
(c) T HE DIVISION OF SECURITIES CREATED IN SECTION 11-51-701,
PURSUANT TO ITS AUTHORITY UNDER PART 4 OF ARTICLE 51 OF TITLE 11.
SECTION 2. Act subject to petition - effective date -
applicability. (1) This act takes effect at 12:01 a.m. on the day following
the expiration of the ninety-day period after final adjournment of the
general assembly (August 12, 2026, if adjournment sine die is on May 13,
2026); except that, if a referendum petition is filed pursuant to section 1 (3)
of article V of the state constitution against this act or an item, section, or
part of this act within such period, then the act, item, section, or part will
not take effect unless approved by the people at the general election to be
held in November 2026 and, in such case, will take effect on the date of the
official declaration of the vote thereon by the governor.
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(2) This act applies to conduct occurring on or after the applicable
effective date of this act.
____________________________ ____________________________
James Rashad Coleman, Sr. Julie McCluskie
PRESIDENT OF SPEAKER OF THE HOUSE
THE SENATE OF REPRESENTATIVES
____________________________ ____________________________
Esther van Mourik Vanessa Reilly
SECRETARY OF CHIEF CLERK OF THE HOUSE
THE SENATE OF REPRESENTATIVES
APPROVED________________________________________
(Date and Time)
_________________________________________
Jared S. Polis
GOVERNOR OF THE STATE OF COLORADO
PAGE 7-SENATE BILL 26-118