Iowa-2023-HF649-Introduced

H.F. 649 Section 1. NEW SECTION . 633.358 Charitable organization 1 beneficiary affidavit and third-party protection. 2 1. A charitable organization, as defined in section 3 15E.311, may present an affidavit to any person for the purpose 4 of obtaining property, or information regarding property, owned 5 by a decedent for which the charitable organization is a named 6 beneficiary. 7 2. To collect the property owned by the decedent, 8 the charitable organization shall furnish to the person 9 an affidavit under penalty of perjury stating all of the 10 following: 11 a. The decedent’s name and last known address. 12 b. A general description of the property of the decedent 13 that is to be paid or transferred to the charitable 14 organization. 15 c. The charitable organization’s name, address, and primary 16 contact information. 17 d. A statement requesting that the property to be paid or 18 transferred to the charitable organization. 19 e. Affirmation that the charitable organization’s 20 tax-exempt status has not been revoked, modified, or amended 21 in any manner which would cause the representations in the 22 affidavit to be incorrect. 23 f. A statement confirming that no inheritance, income, 24 property, or other taxes are owed to the department of revenue, 25 local governments, or the federal internal revenue service on 26 the property listed in the affidavit. 27 g. A statement that no persons, other than the charitable 28 organization, have a right to the interest in the decedent’s 29 property listed in the affidavit. 30 h. A statement that the information in the affidavit is true 31 and correct. 32 3. The affidavit shall be signed by an officer of the 33 charitable organization, sworn and subscribed to under penalty 34 of perjury before a notary, and be accompanied with all of the 35 -1- LSB 2008HV (1) 90 cm/ns 1/ 4

H.F. 649 following: 1 a. A photocopy of the charitable organization’s tax-exempt 2 status from the federal internal revenue service. 3 b. A death certificate of the property owner if the person 4 has not been notified of the decedent’s death. 5 c. A corporate resolution or similar statement of authority 6 to act on behalf of the organization. 7 d. Federal internal revenue service form W-9 completed by 8 the charitable organization. 9 4. A person receiving an affidavit under this section 10 shall not request any additional personal information from 11 any individual employed by, or serving on the board of, such 12 charitable organization, including but not limited to any of 13 the following personal information from any individual: 14 a. Social security number. 15 b. Contact information. 16 c. Financial information. 17 5. If the requirements of this section are satisfied, all 18 of the following apply: 19 a. The decedent’s property shall be paid, delivered, or 20 transferred to or for the benefit of the successor. 21 b. A transfer agent of a security described in the 22 affidavit shall change registered ownership on the books of 23 the corporation from the decedent to or for the benefit of the 24 successor. 25 6. A person who in good faith relies on the property 26 or information a charitable organization provides under 27 this section, who has no knowledge that the representations 28 contained in the affidavit are incorrect, shall not be liable 29 to any person for so acting and may assume without inquiry the 30 existence of the facts contained in the affidavit. The period 31 of time to verify a charitable organization’s authority shall 32 not exceed thirty days from the date the person received the 33 affidavit. Any right or title acquired from the charitable 34 organization in consideration of the provision of property or 35 -2- LSB 2008HV (1) 90 cm/ns 2/ 4

H.F. 649 information under this section is not invalid in consequence of 1 misapplication by the charitable organization. A transaction 2 and a lien created by a transaction, entered into by the 3 charitable organization and a person acting in reliance on the 4 affidavit under this section, is enforceable against the assets 5 the charitable organization has requested. 6 7. If a person refuses to provide the requested property 7 or information within thirty days of receiving the affidavit, 8 the charitable organization may bring an action to recover 9 the property or information, or to compel the delivery of 10 the property, against the person to whom the charitable 11 organization presented the affidavit. An action brought under 12 this section must be brought within one year after the date 13 of the act or failure to act. If the court finds that the 14 person acted unreasonably in failing to deliver the property or 15 information as requested in the affidavit, the court may award 16 to the charitable organization any of the following: 17 a. Damages sustained. 18 b. Costs of the action. 19 c. A penalty in an amount determined by the court between 20 five hundred dollars and ten thousand dollars. 21 d. Reasonable attorney fees based on the value of the time 22 reasonably expended by the attorney and not by the amount of 23 the recovery on behalf of the charitable organization. 24 8. This section does not limit or change the rights of 25 beneficiaries, heirs, or creditors to estate property to which 26 they are otherwise entitled. 27 EXPLANATION 28 The inclusion of this explanation does not constitute agreement with 29 the explanation’s substance by the members of the general assembly. 30 This bill relates to probate law regarding charitable 31 organizations named as beneficiaries of an estate. The bill 32 allows a charitable organization to present an affidavit 33 to any person for the purpose of obtaining property, or 34 information regarding property, owned by a decedent for which 35 -3- LSB 2008HV (1) 90 cm/ns 3/ 4

H.F. 649 the charitable organization is a named beneficiary. The bill 1 provides the representations and requirements of the affidavit 2 presented. The bill prohibits a person from requesting any 3 additional personal information of an individual employed by, 4 or serving on the board of, such charitable organization. 5 The bill provides that upon completion of the bill’s 6 requirements, the charitable organization shall receive the 7 decedent’s property as the beneficiary and a transfer agent of 8 a security described in the affidavit shall change registered 9 ownership on the books of the corporation from the decedent to 10 or for the benefit of the successor. The bill provides that 11 a person in good faith that relies upon and has no knowledge 12 that the representations in the affidavit are incorrect shall 13 not be liable to any person for so acting in reliance of the 14 affidavit. The person who received the request has 30 days to 15 verify the affidavit and provide the information or requested 16 property to the charitable organization. Upon failing to do 17 so the charitable organization may bring an action to recover 18 the property, information, or to compel the delivery of the 19 property against the person to whom the charitable organization 20 presented the affidavit. The bill allows an action to be 21 brought within one year after the date of the act or failure 22 to act. If the charitable organization prevails in the court 23 action, the court may also award damages sustained, costs of 24 the action, a penalty determined by the court of not less than 25 $500 and not more than $10,000, and reasonable attorney fees. 26 -4- LSB 2008HV (1) 90 cm/ns 4/ 4