SB 1288: Property: nonprobate transfer of ownership.

Session Year: 2025-2026
House: Senate
Latest Version Date: 2026-06-08

Current Status:

In Progress

(2026-06-25: Re-referred to Com. on APPR. pursuant to Assembly Rule 97.)

Introduced

In Committee

First Chamber

In Committee

Second Chamber

Enacted

Version:

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.

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.

This bill would require a registering entity that receives information establishing knowledge of the death of all owners of a security designated for nonprobate transfer held by that registering entity to initiate its beneficiary notification process, as specified. The bill would require the registering entity to make a reasonable and good-faith effort, as defined, to notify each named beneficiary. The bill would require a beneficiary who has provided all required documentation to the registered entity to receive their designated share within 60 days of completing the registering entitys process, as specified.

This bill would specify the necessary information for a nonprofit corporation, charitable trust, or entity that is exempt from federal taxation to establish its legal identity for these purposes. The bill would prohibit a registering entity from requesting additional information, including, among other things, a social security number and drivers license number, from an individual employed by, or serving on the board of, those types of beneficiaries, except as specified. The bill would require a registering entity to permit those types of beneficiaries to demonstrate their entitlement to a security by providing specific documentation.

This bill would provide that it does not apply when the death of all owners of a security occurred before January 1, 2027.

Discussed in Hearing