Panel advances bill to treat cooperative patronage capital as probate account

The Domestic Relations Business and Probate Law Subcommittee voted 5-0 to forward House Bill 3,914, which would amend the South Carolina Probate Code to explicitly include patronage capital accounts held by members of electric and telephone cooperatives in the definition of an "account" for probate purposes.

Patronage capital accounts reflect a cooperative member's allocated share of surplus earnings based on payments for services or capital contributions. Under current practice, those accounts are not always explicitly treated as financial accounts for probate purposes; the bill would clarify whether such funds pass directly to surviving co-owners (if the account includes survivorship) or into the deceased member's estate.

The bill as presented would take effect July 1, 2025, if enacted. A committee member described a practical example: Representative Bailey told the member who relayed the example that a surviving relative would otherwise have had to open a probate estate to collect a $67 check, which the bill would avoid in similar small-value cases.

The presenter said she spoke with a Richland County probate judge who "didn't see any issues" with the change. After brief discussion the committee approved a favorable report by roll call, five ayes and no nays.

The bill is intended to reduce unnecessary small estates and clarify how cooperative patronage capital is treated on death; committee members described it as helping relatives avoid burdensome probate for modest amounts.

The subcommittee forwarded House Bill 3,914 with a favorable recommendation.