IllinoisHB4206104th General Assembly (2025–2026)HouseWALLET

CHARITABLE ORG BFY-PROBATE

Sponsored By: Sponsor information unavailable

Became Law

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: 2 benefits, 0 costs, 2 mixed.

Insurers must help charity beneficiaries

When a named beneficiary is a charity, the insurer must act within 120 days. It must decide if the charity has a right to proceeds, share the exact beneficiary language and a general description, say whether it has the death certificate, and send claim forms or instructions. The insurer must do this when it finds a possible Death Master File match or when the charity contacts it.

Insurers must check deaths and send unclaimed money

Insurers must compare active policies, annuities, and retained asset accounts to the Death Master File at least twice a year. Within six months after buying policies or accounts, they must run full‑file checks on new items and updates on ones already searched. Insurers and vendors may not charge beneficiaries for these searches or match checks. If beneficiaries cannot be found after good‑faith searches, insurers must report and send the money and any interest to the State Treasurer under unclaimed‑property law.

Faster transfers of gifts to charities

When a holder verifies a death, it must notify each named charity within 45 business days. The notice lists the decedent, contact details, a description of the property, and the exact beneficiary words; noncharitable names may be redacted. A charity may send a notarized affidavit to claim or get information and must include its IRS letter, state good standing, proof of death, authority papers, and a W‑9. If no one else claims the same portion, the holder must transfer the property or give the information within 60 business days, following the charity’s reasonable preference. The holder cannot force the charity to open an account or wait for co‑beneficiaries, unless a security cannot be split. A charity may ask to open an account; then the holder may collect only the minimum data needed to open it.

Privacy and legal tools for charities

A holder may not demand personal data from charity staff or board. It may only check an unexpired government photo ID to verify identity and authority when an affidavit is filed. If the holder says federal law blocks payment, it must explain why in writing and try in good faith to make the transfer. If the holder misses the 60‑business‑day deadline or refuses unreasonably, the charity can sue within one year. Courts may order delivery, damages, costs, attorney fees, and up to a $10,000 penalty for bad faith. A holder that pays in good faith based on a charity’s affidavit, without knowing it is wrong, is not liable. Payments made before notice of an adverse claim discharge the holder for those amounts.

Sponsors & Cosponsors

Sponsors

There is no primary sponsor on record.

Cosponsors

  • Ann M. Williams

    Affiliation unavailable

  • Anna Moeller

    Affiliation unavailable

  • David Koehler

    Affiliation unavailable

  • Jennifer Gong-Gershowitz

    Affiliation unavailable

  • Julie A. Morrison

    Affiliation unavailable

  • Justin Cochran

    Affiliation unavailable

  • Kevin John Olickal

    Affiliation unavailable

  • Laura Faver Dias

    Affiliation unavailable

  • Lindsey LaPointe

    Affiliation unavailable

  • Mary Beth Canty

    Affiliation unavailable

  • Michael W. Halpin

    Affiliation unavailable

  • Michelle Mussman

    Affiliation unavailable

  • Mike Porfirio

    Affiliation unavailable

  • Ram Villivalam

    Affiliation unavailable

  • Robert F. Martwick

    Affiliation unavailable

  • Suzanne M. Ness

    Affiliation unavailable

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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