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Panel clears bill classifying cooperative patronage capital as probate account
Summary
The subcommittee voted 5-0 to report favorably on House Bill 3,914, which would include patronage capital accounts from electric and telephone cooperatives in the probate-code definition of 'account,' clarifying how those funds pass at death.
House Bill 3,914 would amend the South Carolina Probate Code to include patronage capital accounts held by members of electric or telephone cooperatives in the statute’s definition of an account. The Domestic Relations Business and Probate Law Subcommittee voted 5-0 to give the bill a favorable report.
Patronage capital accounts represent a cooperative member’s share of surplus earnings allocated annually and tied to payments or capital contributions. Under current law, those accounts are not explicitly treated like checking or savings accounts for probate purposes; HB 3,914 would clarify whether such funds transfer directly to surviving co-owners when survivorship exists or pass into a decedent’s estate.
A committee member told the panel they had discussed the change with the Richland County probate judge and with Representative Bailey, and relayed a practical example in which a surviving family member would otherwise have to open a probate estate over a $67 check. The bill as reported would take effect July 1, 2025, if enacted.
After discussion, the committee proceeded to a roll-call approval. Votes on HB 3,914 were recorded as: Representative Bernstein — yes; Representative Paula Calhoun — yes; Representative Guest — yes; Representative John King — yes; Representative David Martin — yes. The committee announced a favorable report.
No fiscal or operational implementation details were discussed at the subcommittee meeting.
