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Legacy Giving to Charitable Organizations

Concerning the payment of designated benefits to a charitable organization upon the death of a donor.

SB26-118 2026 Regular Session Signed into Law Financial Services & Commerce Probate, Trusts, & Fiduciaries

Cost estimates

At the first note read
$0
FACT March 4, 2026
At the last note read
$0
FACT June 18, 2026
What it actually cost
not published
No Colorado source reports spending for one bill

Every figure here is an estimate by Legislative Council Staff on the date shown, about the version of the bill in front of them that day. It is not a cost.

The appropriation

The note states no appropriation is required.

An appropriation is money the legislature sets aside. It is not money spent.

The appropriation field, read from the note: No appropriation is required.

Bill summary

     The act requires a bank, broker-dealer, depository institution, credit union, or financial or institutional investor (covered entity) that holds benefits that are designated by a donor to a charitable organization to pay the designated benefits no later than 60 calendar days after the charitable organization submits an affidavit attesting to the death of the donor and other information to the covered entity, except as described in federal law.

     If a covered entity that holds designated benefits is unable to pay the designated benefits to a charitable organization because federal law requires the covered entity to take certain actions or satisfy certain criteria in order to pay the designated benefits, the covered entity must take the actions or satisfy the criteria that are required by federal law and comply with the act no less than 120 calendar days after the charitable organization submits the affidavit to the covered entity.

     If a charitable organization receives designated benefits that concern a creditor claim, statutory allowance, or the unsatisfied balance of an elective-share or a supplemental elective-share claim (outstanding claim) for which the charitable organization may be liable, the charitable organization must return to the donor's estate a portion or all of the designated benefits in order to satisfy the outstanding claim within 60 days after receiving written notice of the liability, with certain exceptions. If the charitable organization fails to comply, it must pay statutory interest to the donor's estate for each day the unreturned amount remains outstanding. Upon receiving notice of the outstanding claim from the personal representative of the donor's estate, the charitable organization must hold all or a portion of the designated benefits in a constructive trust pending a determination of the outstanding claim. Moreover, the charitable organization may be subject to one or more court actions.

     A covered entity that holds benefits that are designated to a charitable organization shall not:

  • Require the charitable organization to establish an account with the covered entity as a condition of receiving the designated benefits; or
  • Require an individual employed by, or serving on the board of, the charitable organization to submit personal information as a condition of receiving designated benefits.

     The act may be enforced by the division of banking, the financial services board, or the division of securities, as appropriate.

FACT Bill summary by Colorado Legislative Council Staff, read 2026-09-23. Printed as published, word for word. Source: leg.colorado.gov (opens in a new tab)