Panel approves bill clarifying probate treatment of cooperative patronage capital accounts

The Domestic Relations Business and Probate Law Subcommittee unanimously gave House Bill 3,914 a favorable report after brief discussion. The bill would amend the South Carolina Probate Code to include patronage capital accounts held by members of electric and telephone cooperatives in the definition of an "account."

Proponents said patronage capital accounts reflect a cooperative member’s share of surplus earnings allocated on an annual basis and that current probate law does not explicitly treat those accounts as financial accounts for probate purposes. Including them in the Probate Code’s definition would clarify whether such funds pass on death by survivorship if the account carries survivorship rights, or otherwise into the decedent’s estate.

The bill as discussed would take effect on July 1, 2025, if enacted. During the subcommittee discussion a member cited a local example in which a decedent’s estate consisted of a single check for $67; under current practice that small amount could require opening a probate estate. The transcript records that a Richland County probate judge had been consulted and did not see issues with the proposed change.

The committee then ordered a roll call and issued a favorable report by a 5-0 vote. The roll call recorded votes of “Aye” from Representative Bernstein, Representative Paula Calhoun, Representative Guest, Representative John King and Representative David Martin; the chair announced House Bill 3,914 received a favorable report with five in favor and none against.

The transcript contains no discussion of fiscal notes, budgetary effects, or opposition testimony. The bill text as discussed clarifies the treatment of patronage capital accounts for probate transfer purposes; it does not specify particular dollar thresholds for when probate is or is not required beyond the single example discussed.