CO SB118

Requires banks, broker-dealers, credit unions, and other covered financial entities to pay designated benefits (such as insurance proceeds, POD accounts, and retirement plan proceeds) to charitable organizations within 60 calendar days after receiving an affidavit attesting to the donor's death, or within 120 days if federal law requires additional actions.

Charitable organizations receiving designated benefits must return all or a portion of funds within 60 days if notified they are liable for creditor claims, statutory allowances, or elective-share claims against the donor's estate; failure to comply results in statutory interest penalties and potential court actions including injunctions and attorney fee awards.

Prohibits covered entities from requiring charitable organizations to establish an account with the entity or from requiring employees/board members to submit personal information (Social Security numbers, driver's license numbers, financial information) as a condition of receiving designated benefits.

Charitable organizations must hold designated benefits in a constructive trust upon receiving notice of a potential outstanding claim from the estate's personal representative, pending determination of the claim.

Enforcement authority is granted to the Division of Banking, Financial Services Board, or Division of Securities; the act takes effect August 12, 2026, subject to referendum petition.