AN ACT to enact provisions related to the transfer of property when charitable organizations are named as beneficiaries of nonprobate assets.

The General Assembly of North Carolina enacts:

SECTION 1.  Chapter 41 of the General Statutes is amended by adding a new Article to read:

Article 4B.

Transfers on Death to Charitable Organizations.

§ 41‑53.1.  Beneficiary designation defined.

For the purposes of this Article, beneficiary designation means, other than a will or an instrument creating a trust, an instrument or provision in an instrument designating a beneficiary, including, but not limited to, any of the following:

(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.

(5)        Any other nonprobate transfer at death.

§ 41‑53.2.  Charitable organization as beneficiary.

(a)        A charitable organization incorporated in North Carolina or incorporated in another state and having a valid certificate of authority in North Carolina that is exempt under section 501(c)(3) of the Internal Revenue Code and is a beneficiary of an interest in property created by beneficiary designation may deliver an affidavit to the holder of the property for the purpose of obtaining the property or information regarding the property. The affidavit shall be signed by a duly authorized representative of the charitable organization under penalty of perjury before a notary public and shall state all of the following:

(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 request that the property be transferred to the charitable organization or that specified information about the property be given to the charitable organization.

(5)        Affirmation that, on information or belief of the affiant, the property owner is deceased and no one other than the charitable organization has a right to the interest in the property listed in the affidavit.

(6)        That the information in the affidavit is true and correct.

(b)        An affidavit presented under this section shall be accompanied by all of the following:

(1)        A copy of the charitable organization's determination letter from the Internal Revenue Service recognizing its tax‑exempt status.

(2)        A copy of the charitable organization's certificate of existence issued pursuant to the law under which it is organized as conclusive evidence that the organization is in good standing.

(3)        The certified copy of the death certificate of the decedent as verification of the decedent's death.

(4)        A corporate resolution or similar statement recognizing the affiant's authority to act on behalf of the charitable organization.

(5)        Internal Revenue Service form W‑9 completed by an authorized representative of the charitable organization.

§ 41‑53.3.  Transfer of property.

(a)        A holder of property that receives an affidavit under this Article shall not request any additional personal information from any individual employed by or serving on the board of directors of the charitable organization. As used in this subsection, personal information includes, but is not limited to, the following:

(1)        Social security number.

(2)        Drivers license number.

(3)        Contact information.

(4)        Personal financial information.

(b)        If the requirements of this Article are satisfied, all of the following apply:

(1)        The decedent's property shall be paid, delivered, or transferred to or for the benefit of the charitable organization as requested in the affidavit.

(2)        The transfer agent of a security described in the affidavit shall change registered ownership from the decedent to or for the benefit of the charitable organization as requested in the affidavit.

(3)        The information requested in the affidavit shall be delivered to the organization.

(c)        A holder of property that receives an affidavit and accompanying documents under this Article may assume without undue investigation the validity of the facts contained in them. The holder of the property that in good faith delivers the property or information requested in reliance on the facts contained in the affidavit and accompanying documents and that has no actual knowledge that contradicts those facts is not liable to any person for having delivered the property or information requested.

(d)       A lien created by a transaction between the charitable organization and a holder of property acting in reliance on the affidavit provided under this Article is enforceable against the property the charitable organization has requested.

(e)        Compliance with this section is not required if it would cause a holder of property to violate federal or State law, including the rules of a self‑regulatory organization registered under the federal Securities Exchange Act of 1934, 15 U.S.C. § 78a, et seq., or promulgated regulations, provided, however, all of the following shall apply:

(1)        A violation of an internal policy or guideline of the holder of property, including a policy or guideline that requires opening an inherited account, does not excuse compliance unless the policy or guideline is expressly required by federal or State law, including the rules of a self‑regulatory organization registered under the federal Securities Exchange Act of 1934, 15 U.S.C. § 78a, et seq., or promulgated regulations.

(2)        If compliance with the requirements of this section would cause a violation as described in this subsection, the holder of property shall not seek any personal information from any individual employed by or serving on the board of directors of the charitable organization that is not expressly required by federal or State law, including the rules of a self‑regulatory organization registered under the federal Securities Exchange Act of 1934, 15 U.S.C. § 78a, et seq., or promulgated regulations.

(3)        If compliance with the requirements of this section would cause a violation as described in this subsection, the holder of property shall provide a written notice of the specific legal authority for the noncompliance to the charitable organization that is the beneficiary within 30 days. The written notice shall include the following:

a.         A citation to the specific statute or regulation that would be violated.

b.         A plain‑language description of the information or action required from the beneficiary to satisfy and comply with that specific legal requirement.

(4)        A holder of property that originates or transfers securities in reliance on documentation that complies with this section shall be discharged from all claims to the security by the estate, creditors, heirs, or devisees of a deceased owner.

§ 41‑53.4.  Enforcement.

(a)        If a holder of the property refuses to provide the requested property or information within 60 days after delivery of the affidavit and accompanying documents under this Article, the charitable organization may, within one year from the sixty‑first day following the date of proof of delivery, bring an action against the holder of the property to compel delivery of the property or information. If the court finds that the holder of the property acted unreasonably in failing to deliver the property or information as requested in the affidavit, the court may award to the charitable organization any or all of the following:

(1)        Damages sustained by the charitable organization.

(2)        Costs of the action.

(3)        A penalty in an amount determined by the court between five hundred dollars ($500.00) and ten thousand dollars ($10,000).

(4)        Reasonable attorneys' fees based on the value of the time reasonably expended by the attorney and not based on the amount of the recovery by the charitable organization.

(b)        If a charitable organization receives designated benefits for which the charitable organization is liable under G.S. 30‑15, 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 60 days after receiving written notice from the personal representative of the donor's estate. If the charitable organization fails to comply with this provision, the charitable organization shall pay statutory interest to the donor's estate for each day the unreturned amount remains outstanding.

SECTION 2.  This act is effective when it becomes law and applies to affidavits from charitable organizations delivered on or after that date.