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<ns0:Id>20250SB__128898AMD</ns0:Id>
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<ns0:ActionText>INTRODUCED</ns0:ActionText>
<ns0:ActionDate>2026-02-20</ns0:ActionDate>
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<ns0:ActionText>AMENDED_SENATE</ns0:ActionText>
<ns0:ActionDate>2026-03-26</ns0:ActionDate>
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<ns0:SessionYear>2025</ns0:SessionYear>
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<ns0:AuthorText authorType="LEAD_AUTHOR">Introduced by Senator Laird</ns0:AuthorText>
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<ns0:Name>Laird</ns0:Name>
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<ns0:Title> An act to amend Section 5507 of, and to add Section 5510.5 to, the Probate Code, relating to property.</ns0:Title>
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<ns0:Subject>Property: nonprobate transfer of ownership.</ns0:Subject>
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<html:p>Existing law, the Uniform TOD Security Registration Act, provides for the transfer of ownership or proceeds of a security, as defined, by a registering entity to the designated beneficiary or beneficiaries upon the death of the owner without probate or estate administration, as specified.</html:p>
<html:p>This bill would require a registering entity that receives proof of the death of an owner of a security designated for non-probate transfer held by that registering entity to provide notice to a beneficiary, as specified. The bill would restrict the amount and type of information that a registering entity can require from such a beneficiary prior to establishing its identity, as specified. The bill would also prohibit a registering entity from requiring a beneficiary to open an account with the registering entity to receive the security and from requiring
multiple beneficiaries to coordinate to receive their share of the security, as specified. The bill would also specify that a nonprofit corporation, a charitable trust, or an entity exempt from federal taxation may be beneficiaries under the Act and limits the amount of information such entities are required to provide the registering entity in order to receive the property in which they have an interest.</html:p>
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<ns0:Preamble>The people of the State of California do enact as follows:</ns0:Preamble>
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<ns0:Num>SECTION 1.</ns0:Num>
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Section 5507 of the
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is amended to read:
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<ns0:Num>5507.</ns0:Num>
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(a)
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On death of a sole owner or the last to die of all multiple owners, ownership of securities registered in beneficiary form passes to the beneficiary or beneficiaries who survive all owners. On proof of death of all owners and compliance with any applicable requirements of the registering entity, a security registered in beneficiary form may be reregistered in the name of the beneficiary or beneficiaries who survive the death of all owners. Until division of the security after the death of all owners, multiple beneficiaries surviving the death of all owners hold their interests as tenants in common. If no beneficiary survives the death of all owners, the security belongs to the estate of the deceased sole owner or the estate of the last to die of
all multiple owners.
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(b)
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If a registering entity receives notification of death from a credible source, and is provided with proof of death of all owners of the security, the registering entity shall initiate its beneficiary notification process. Proof of death may be provided through a certified informational copy of a death certificate or other reliable
documentation. Only one such document from any party is required to begin the process.
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(c)
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Upon receipt of proof of death of all owners of the security, the registering entity shall, within 60 days, make a reasonable and good-faith effort to notify each named beneficiary. The initial notification shall not disclose the account balance, transaction history, or other private financial information. The registering entity shall disclose the percentage and amount of a beneficiary’s designated share to the beneficiary after their identity is confirmed.
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(d)
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The registering entity may require identifying information from a beneficiary, including a social security number for individual beneficiaries and a federal employer identification number (EIN) for nonprofit or charitable
beneficiaries, a phone number, and a mailing address to verify identity.
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(e)
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A registering entity shall not require a beneficiary to open an account in order to receive ownership of the registered securities.
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(f)
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A registering entity shall make reasonable efforts to streamline transfers of securities. If there is more than one beneficiary, a registering entity shall not require the beneficiaries to submit claims simultaneously or impose coordination deadlines among co-beneficiaries. If there is more than one beneficiary, no more than one beneficiary shall be required to submit proof of death of the
owner or owners.
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(g)
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A beneficiary that has provided all required documentation shall receive their designated share upon completing the registering entity’s process, and shall not be required to wait for any other beneficiary to act before transfer, unless legally required due to outstanding liens, levies, or court orders affecting the estate or account. Any such legal impediment to transfer shall be disclosed to the beneficiary upon inquiry.
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<ns0:Num>SEC. 2.</ns0:Num>
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Section 5510.5 is added to the
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, to read:
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<ns0:Num>5510.5.</ns0:Num>
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(a)
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A nonprofit corporation, a charitable trust, or an entity exempt from federal taxation pursuant to Section 501(c)(3) of the Internal Revenue Code of 1986, as amended (26 U.S.C. Sec. 501(c)(3)) may be named in a beneficiary form under this part.
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(b)
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Notwithstanding Section 5510, the legal identity of an entity described in subdivision (a) shall be established by providing to the registering entity a federal employer identification number (EIN), phone number, and mailing address. The registering entity shall
not require any individual associated with the beneficiary entity to provide personal identifying information.
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(c)
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Notwithstanding Section 5510, a registering entity shall
permit an entity described in subdivision (a) to demonstrate its entitlement to the security by providing the following documentation:
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(1)
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Proof of decedent’s death through provision of a death certificate, obituary, funeral invoice, or other reliable documentation.
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(2)
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A copy of a nonprofit’s IRS tax-exempt status letter, as applicable.
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(3)
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The entity’s EIN and contact information.
</html:p>
<html:p>
(4)
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A completed IRS Form W-9 request for taxpayer identification number and certificate.
</html:p>
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(d)
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Proof of a decedent’s death may only be required by the registering entity if it has not otherwise
received proof of death from any source.
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(e)
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Notwithstanding Section 5510, the registering entity shall not require an entity described in subdivision (a) to provide information about a decedent owner other than what is reasonably necessary to identify the decedent and the security. A beneficiary’s inability to provide the personal data of a decedent owner, such as a social security number, shall not be grounds for denial of a claim.
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(f)
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A registering entity 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 to the same extent as, and subject to the same requirements, described in Section 5508.
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