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Subcommittee backs change to probate code to include cooperative patronage accounts
Summary
House Bill 3,914 would amend the South Carolina Probate Code to treat patronage capital accounts held by electric or telephone cooperatives as financial accounts for probate purposes; the subcommittee gave the bill a favorable report 5-0.
The Domestic Relations Business and Probate Law Subcommittee on Thursday gave a favorable report to House Bill 3,914, a measure that would amend the South Carolina Probate Code to include patronage capital accounts held by members of electric or telephone cooperatives in the definition of “account.”
Patronage capital accounts record a cooperative member’s share of surplus earnings allocated annually based on payments for services or capital contributions. Under current law such accounts are not explicitly treated as financial accounts for probate purposes. The bill would clarify how those funds pass on a member’s death — either directly to surviving co-owners if survivorship is specified or into the decedent’s estate — and reduce the need to open probate estates for small amounts.
The bill’s sponsor said the change would help avoid probate proceedings over very small transfers. As an example cited during the meeting, Representative Bailey described a case in which a $67 check would otherwise have required opening a probate estate. The bill would take effect July 1, 2025, if enacted.
Committee members had no objections on the record. By roll call, Representatives Bernstein, Paula Calhoun, Guest, John King and David Martin voted “aye”; the subcommittee’s favorable report was 5-0.
The bill clarifies the Probate Code’s application to cooperative patronage capital accounts but does not specify changes to probate fees or administrative procedures beyond the definitional change discussed in committee.
