IllinoisHB4206104th General Assembly (2025–2026)HouseWALLET

CHARITABLE ORG BFY-PROBATE

Sponsored By: Sponsor information unavailable

Signed by Governor

Summary

Creates the Charitable Organization Beneficiary Act. Requires a holder of property in which a charitable organization that is exempt from taxation as a 501(c)(3) entity is a designated beneficiary in a nonprobate instrument (excluding wills or trusts) to notify each charitable organization within 30 business days that it may have a right to the property. Creates a process in which the charitable organization may request that it be given information about the property or that the property be delivered to the charitable organization or both. Provides duties and obligations of the holder of the property. Provides the holder of the property protection from liability for a good faith reliance on the information it receives from a designated beneficiary. Provides remedies against a holder of property for a failure or refusal to provide the requested information or transfer of property if the provisions of the Act are followed. Defines terms.

judiciary - civilassignments

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Bill Overview

Analyzed Economic Effects

4 provisions identified: 4 benefits, 0 costs, 0 mixed.

Fewer death certificates for insurance claims

When a life insurance policy requires a certified death certificate, the insurer cannot require more than one beneficiary to submit a certified copy. This reduces repeated paperwork for beneficiaries making a claim.

Charities get clearer property claims

After confirming an owner's death, a property holder must notify each named charity within 45 business days. The notice includes owner and property details and the exact beneficiary wording; other beneficiaries' names may be hidden. To claim property or information, a charity must submit a notarized affidavit under penalty of perjury, with proof of death, tax-exempt status, authority to act, good standing, and an IRS Form W-9. If there is no competing claim, the holder must transfer the property or provide requested information within 60 business days. Holders generally cannot require a new account, joint claims, or broad personal details about charity staff; a federal-law barrier requires a written explanation and a good-faith effort to help. A charity can sue within one year if the holder misses the deadline. A court may order delivery and award damages, costs, and legal fees for unreasonable conduct, with a penalty of up to $10,000 for bad faith or willful misconduct.

Charities get help with insurance claims

When a charity contacts an insurer as specified by law, the insurer must check its right to proceeds and share policy or account details, the exact beneficiary wording, and whether it has documents to verify the death. Within 120 days, the insurer must also provide claim forms and instructions and follow the law's property-holder duties. The information-sharing rule has an exception for certain nonprofits named as the sole, irrevocable beneficiary of a life insurance policy.

Property holders get legal protection

A property holder or another person is protected from liability when they rely in good faith on a charity's affidavit and do not know it is wrong. A transfer made under the law discharges the holder's duties for the amount transferred, as long as the holder had not received notice of a competing claim or court order.

Sponsors & Cosponsors

Sponsors

There is no primary sponsor on record.

Cosponsors

  • Ann M. Williams

    Democratic • House

  • Anna Moeller

    Democratic • House

  • David Koehler

    Democratic • Senate

  • Jennifer Gong-Gershowitz

    Democratic • House

  • Julie A. Morrison

    Democratic • Senate

  • Justin Cochran

    Democratic • House

  • Kevin John Olickal

    Democratic • House

  • Laura Faver Dias

    Democratic • House

  • Lindsey LaPointe

    Democratic • House

  • Mary Beth Canty

    Democratic • House

  • Michael W. Halpin

    Democratic • Senate

  • Michelle Mussman

    Democratic • House

  • Mike Porfirio

    Democratic • Senate

  • Ram Villivalam

    Democratic • Senate

  • Robert F. Martwick

    Democratic • Senate

  • Suzanne M. Ness

    Democratic • House

Roll Call Votes

All Roll Calls

Yes: 200 • No: 7

Senate vote • 5/14/2026

Third Reading - Passed;

Yes: 58 • No: 0

House vote • 4/15/2026

House Floor Amendment No. 2 Recommends Be Adopted Judiciary - Civil Committee;

Yes: 18 • No: 0

House vote • 4/15/2026

Third Reading - Short Debate - Passed

Yes: 111 • No: 0

House vote • 3/25/2026

Do Pass as Amended / Short Debate Judiciary - Civil Committee;

Yes: 13 • No: 7

Actions Timeline

  1. Public Act . . . . . . . . . 104-0481

    6/26/2026House
  2. Effective Date January 1, 2027

    6/26/2026House
  3. Governor Approved

    6/26/2026House
  4. Sent to the Governor

    6/12/2026House
  5. Passed Both Houses

    5/14/2026House
  6. Third Reading - Passed; 058-000-000

    5/14/2026Senate
  7. Added as Alternate Co-Sponsor Sen. Michael W. Halpin

    5/4/2026Senate
  8. Added as Alternate Co-Sponsor Sen. Julie A. Morrison

    4/30/2026Senate
  9. Added as Alternate Co-Sponsor Sen. Mike Porfirio

    4/30/2026Senate
  10. Placed on Calendar Order of 3rd Reading May 5, 2026

    4/30/2026Senate
  11. Second Reading

    4/30/2026Senate
  12. Added as Alternate Co-Sponsor Sen. David Koehler

    4/30/2026Senate
  13. Added as Alternate Co-Sponsor Sen. Ram Villivalam

    4/29/2026Senate
  14. Placed on Calendar Order of 2nd Reading April 29, 2026

    4/28/2026Senate
  15. Approved for Consideration Assignments

    4/28/2026Senate
  16. Referred to Assignments

    4/16/2026Senate
  17. First Reading

    4/16/2026Senate
  18. Chief Senate Sponsor Sen. Robert F. Martwick

    4/16/2026Senate
  19. Placed on Calendar Order of First Reading

    4/16/2026Senate
  20. Arrive in Senate

    4/16/2026Senate
  21. Third Reading - Short Debate - Passed 111-000-000

    4/15/2026House
  22. Placed on Calendar Order of 3rd Reading - Short Debate

    4/15/2026House
  23. House Floor Amendment No. 2 Adopted

    4/15/2026House
  24. House Floor Amendment No. 2 Recommends Be Adopted Judiciary - Civil Committee; 018-000-000

    4/15/2026House
  25. House Floor Amendment No. 2 Rules Refers to Judiciary - Civil Committee

    4/14/2026House

Bill Text

  • Engrossed

  • Enrolled

  • House Amendment 1

  • House Amendment 2

  • Introduced

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