Subcommittee clarifies probate treatment of cooperative patronage capital accounts

The Domestic Relations Business and Probate Law Subcommittee voted Thursday to give House Bill 3,914 a favorable report that would amend the South Carolina Probate Code to include patronage capital accounts in the statutory definition of "account."

Patronage capital accounts represent a cooperative member's share of surplus earnings allocated by an electric or telephone cooperative based on payments for services or capital contributions. Under current law such accounts are not explicitly listed among financial accounts governed by probate and nonprobate transfer rules; the change would clarify whether those funds pass directly to surviving co-owners if survivorship is present or otherwise into the decedent's estate.

The bill includes an effective date of July 1, 2025, if enacted. The subcommittee chair said she had consulted with the Richland County probate judge, who "didn't see any issues with this." A committee member noted the measure would help small-dollar estates where the only asset is a cooperative check, and cited one example of a $67 check that otherwise could require opening a probate estate.

The subcommittee recorded a roll-call favorable report of 5-0. The recorded yes votes were Representative Bernstein, Representative Paula Calhoun, Representative Guest, Representative John King and Representative David Martin.

The change is procedural: it clarifies how a particular class of cooperative account is treated at death under probate law. The committee did not record further directions to agencies or immediate budgetary consequences during the hearing.