Panel advances bill to treat cooperative patronage capital as probate accounts

The Domestic Relations Business and Probate Law Subcommittee voted 5-0 Thursday to give House Bill 3914 a favorable report. The bill would amend the South Carolina Probate Code to include patronage capital accounts held by members of electric or telephone cooperatives within the statutory definition of an "account."

Patronage capital accounts represent 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. Including them in the Probate Code would clarify whether those funds pass directly to surviving co-owners via survivorship or into the decedent’s estate when there is no survivorship designation.

The bill text sets an effective date of July 1, 2025, if enacted. A subcommittee member described a local example to illustrate the issue: after a member’s death, a $67 cooperative disbursement would have required opening a probate estate under current rules. “The only thing she had that was a check from, an entity for $67 he would have had to open a probate estate, go through the whole process for $67,” the speaker said, arguing the change would spare small estates from unnecessary probate costs. The sponsoring member reported consultation with the Richland County probate judge, who did not raise issues with the change.

Roll call recorded Representative Bernstein, Representative Paula Calhoun, Representative Guess, Representative John King and Representative David Martin voting aye; House Bill 3914 received a favorable report from the subcommittee by a 5-0 vote.