Panel unanimously backs clarification to probate code about cooperative patronage capital accounts

House Bill 3,914 would amend the South Carolina Probate Code to include patronage capital accounts held by members of electric or telephone cooperatives within the definition of an "account" for probate purposes.

Patronage capital accounts reflect a cooperative member's share of surplus earnings allocated annually based on payments for services or capital contributions. Under current law these accounts are not explicitly treated the same as common financial accounts for probate and nonprobate transfer purposes. The bill clarifies whether such accounts pass directly to surviving co-owners if the account includes survivorship language or become part of the decedent's estate, reducing uncertainty for small-value accounts.

Representative Paula Calhoun introduced the bill to the Domestic Relations Business and Probate Law Subcommittee and told members the bill would take effect July 1, 2025, if enacted. Committee members discussed a practical example raised by Representative Bailey (not present in the meeting): the representative had cited a case in which a decedent's sole asset from an entity was a $67 check that otherwise would have required opening a probate estate. Representative Calhoun said she had consulted the Richland County probate judge, who did not see issues with the proposed change.

The subcommittee voted unanimously, 5-0, in favor of reporting the bill out of committee. Representative Calhoun ordered a roll-call vote; recorded ayes were unanimous and House Bill 3,914 received a favorable report from the subcommittee.

The bill clarifies treatment of cooperative patronage capital accounts under the probate code and aims to reduce the administrative burden of probating small cooperative account balances upon a member's death.