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Subcommittee moves to treat cooperative patronage capital accounts as probate accounts
Summary
House Bill 3,914 would amend the South Carolina Probate Code to include patronage capital accounts from electric and telephone cooperatives in the definition of 'account,' clarifying how those funds pass at death.
A South Carolina House subcommittee issued a favorable report Thursday on House Bill 3,914, which would amend the South Carolina Probate Code to include patronage capital accounts held by members of electric and telephone cooperatives in the definition of "account." The change clarifies whether such funds pass by survivorship or into a decedent’s estate.
The bill’s presenter explained that patronage capital represents a cooperative member’s share of surplus earnings allocated annually based on payments for services or capital contributions, and that current probate law does not explicitly treat those accounts the same way as checking or savings accounts. She said the bill would resolve those ambiguities so small sums do not require opening a full probate estate.
"This bill would take effect on 07/01/2025 if enacted," the presenter said.
A committee member offered an example — citing a case in which a surviving relative would have faced probate to collect a $67 patronage payment — to illustrate the bill’s practical effect for small-dollar accounts. The subcommittee voted 5-0 in favor of the bill; Representatives Bernstein, Calhoun, Guest, King and Martin recorded aye votes and the bill received a favorable report.
The presenter told the committee she had consulted the Richland County probate judge and that judge did not see issues with the change. The bill, if enacted, would alter how cooperatives’ patronage capital accounts are classified for probate transfer purposes.
