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<ns0:Id>20250SB__128899INT</ns0:Id>
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<ns0:ActionText>INTRODUCED</ns0:ActionText>
<ns0:ActionDate>2026-02-20</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:House>SENATE</ns0:House>
<ns0:Name>Laird</ns0:Name>
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<ns0:Title> An act to add Section 1513.6 to the Code of Civil Procedure, and 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>
<html:p>Existing law, the Unclaimed Property Law (UPL), prescribes the circumstances under which intangible property escheats to the state. Existing law sets forth procedures whereby a person may file a claim to the escheated property.</html:p>
<html:p>This bill would specify that nonprofit corporations, charitable trusts, and nonprofit entities that are exempt from federal taxation may be claimants under the UPL and specify which documents are required to establish the identity of such entities. The bill would permit such entities to file claims
for property bequeathed to them through a non-probate transfer and would specify the documents that an entity may be required to provide to establish its ownership of the property at issue. The bill would require the Controller to revise its forms and systems to permit the filing of such claims and to adopt implementing regulations.</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 1513.6 is added to the
<ns0:DocName>Code of Civil Procedure</ns0:DocName>
, to read:
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<ns0:Num>1513.6.</ns0:Num>
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(a)
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A nonprofit corporation, 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 a claimant under this chapter.
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(b)
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For the purposes of this chapter, the legal identity of a claimant described in subdivision(a), shall be established by providing the Controller with a valid federal employer identification number (EIN), phone number, and mailing address. Personally identifying information from individuals associated with the nonprofit shall not be required.
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(c)
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(1)
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The State Controller shall revise forms and systems to enable a claimant
described in subdivision (a) to submit a claim for property that the claimant legally owns as the result of the death of a person. The forms may require proof of the claimant’s entitlement to the security through the following documentation:
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(A)
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A death certificate, obituary, funeral invoice, or other reliable documentation.
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(B)
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A claimant’s tax exempt status letter, as applicable.
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<html:p>
(C)
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A completed IRS Form W-9 request for taxpayer identification number and certification.
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<html:p>
(2)
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The claimant shall not be required to provide any personal information pertaining to the decedent other than those described in paragraph (1).
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<html:p>
(d)
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The Controller shall adopt regulations to implement this section no
later than July 1, 2027.
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<ns0:Num>SEC. 2.</ns0:Num>
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Section 5507 of the
<ns0:DocName>Probate Code</ns0:DocName>
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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<html:p>
(b)
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If a registering entity receives notification of death from an executor or trustee designated in an estate plan or trust, 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 includes a certified death certificate, a published obituary, a funeral home invoice, 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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<html:p>
(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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<html:p>
(f)
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A registering entity shall make reasonable efforts to streamline disbursement. 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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<html:p>
(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 disbursement, unless legally required due to outstanding liens, levies, or court orders affecting the estate or account. Any such legal impediment to disbursement shall be disclosed to the beneficiary upon inquiry.
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<ns0:Num>SEC. 3.</ns0:Num>
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Section 5510.5 is added to the
<ns0:DocName>Probate Code</ns0:DocName>
, to read:
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<ns0:Num>5510.5.</ns0:Num>
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<html:p>
(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.
</html:p>
<html:p>
(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 may not require any individual associated with the beneficiary entity to provide personal identifying information.
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<html:p>
(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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<html:p>
(1)
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Proof of decedent’s death through provision of a death certificate, obituary, funeral invoice, or other reliable documentation.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
A copy of a nonprofit’s IRS tax-exempt status letter, as applicable.
</html:p>
<html:p>
(3)
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The entity’s EIN and contact information.
</html:p>
<html:p>
(4)
<html:span class="EnSpace"/>
A completed IRS Form W-9 request for taxpayer identification number and certificate.
</html:p>
<html:p>
(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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<html:p>
(e)
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Notwithstanding Section 5510, the registering entity may 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.
</html:p>
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(f)
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A registering entity that disburses assets in reliance on documentation that complies with this section shall be protected from liability for improper disbursement to the same extent as provided by law for good-faith reliance on claimant documentation.
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