Panel approves bill to treat co-op patronage capital accounts as probate 'accounts'

The Domestic Relations Business and Probate Law Subcommittee voted 5-0 to give House Bill 3,914 a favorable report, a bill that would amend the South Carolina Probate Code to include patronage capital accounts held by members of electric or telephone cooperatives within the statutory definition of an “account.”

Patronage capital accounts represent a cooperative member’s allocated share of surplus earnings, assigned annually based on payments for service or capital contributions. Under current practice, those accounts are not always treated the same as checking, savings or similar financial accounts for probate purposes; the bill would clarify whether such funds pass by survivorship or through the decedent’s estate.

The measure includes an effective date of July 1, 2025, if enacted. A committee member told the subcommittee she spoke with a Richland County probate judge who did not see issues with the change. Representative comments included a local anecdote referenced by Representative Bailey — cited by a committee member — in which a $67 cooperative distribution would otherwise have required opening a probate estate; the bill would prevent that administrative burden in similar small-value cases.

The subcommittee ordered a roll call and recorded unanimous support. Representatives Bernstein, Paula Calhoun, Guess, John King and David Martin voted “aye.” With a vote of 5 in favor and none against, House Bill 3,914 received a favorable report from the Domestic Relations Business and Probate Law Subcommittee.