Charities could claim property named for them after death

A qualifying charity may ask a property holder to transfer property or provide information using a sworn affidavit and supporting documents. This covers qualifying charities named to receive property through an account, insurance policy, retirement plan, or another transfer that takes effect at death. The charity must be tax-exempt under federal law and incorporated in North Carolina or have a valid state certificate of authority. An authorized representative must sign the affidavit under oath and provide proof of the charity's status, good standing, authority, and the person's death. If enacted, this process would apply to affidavits delivered on or after the act becomes law.

A holder that receives the affidavit and required documents must provide the requested property or information if the requirements are met, and may not ask charity employees or board members for extra personal information. These rules cover holders of property and securities, and personal information about people employed by or serving on the charity's board. A holder may decline compliance if it would violate state or federal law; an internal policy alone is not enough. If a legal conflict prevents compliance, the holder must not seek personal information beyond what the law requires and must give the charity written notice explaining the specific legal basis within 30 days. If enacted, these rules would apply to affidavits delivered on or after the act becomes law. A holder citing a legal conflict must send notice within 30 days.

A charity may sue to compel delivery if a holder does not provide requested property or information within 60 days; a charity liable for certain estate claims must return designated benefits after written notice. These provisions apply to a charity seeking property or information from a holder, and to a charity that receives designated benefits for which it is liable to the donor's estate. A court may award damages, costs, a penalty, or reasonable attorney fees if it finds the holder acted unreasonably. The repayment duty covers claims, allowances, or an unpaid elective-share claim for which the charity is liable under the cited law; unpaid amounts accrue interest set by law. A charity must sue within one year after the 60-day waiting period. It must return covered benefits within 60 days after receiving written notice from the estate's representative.