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Subcommittee clarifies probate treatment of cooperative patronage capital accounts
Summary
House Bill 3,914 would add patronage capital accounts held by electric and telephone cooperative members to the probate code definition of ‘account,’ clarifying how those funds pass on death; the subcommittee gave the bill a 5-0 favorable report.
House Bill 3,914 would amend the South Carolina Probate Code to include patronage capital accounts held by members of electric or telephone cooperatives within the code’s definition of “account,” clarifying how those funds pass on a member’s death.
Under the bill, patronage capital accounts — which reflect a member’s share of cooperative surplus earnings allocated based on payments for services or capital contributions — would be treated as probate accounts rather than falling into an ambiguous category that can require opening a probate estate for small sums. The bill’s sponsor said the change would help avoid situations where an heir must open probate for de minimis amounts, citing an example in which a $67 check would otherwise have required a probate estate.
Representative Paula Calhoun presented the bill and noted it would take effect July 1, 2025, if enacted. She said she had consulted the Richland County probate judge, who did not object to the proposed change. Another lawmaker, referencing a constituent experience, said the bill would prevent heirs from having to open probate for very small cooperative credits.
The subcommittee voted by roll call to give House Bill 3,914 a favorable report. The recorded votes were Representative Bernstein (yes), Representative Paula Calhoun (yes), Representative Guess (yes), Representative John King (yes) and Representative David Martin (yes). The final tally was 5-0 in favor.
No amendments were recorded in the meeting. The bill’s sponsor and the committee characterized the change as a technical clarification of the probate code’s account definition to reduce administrative burden on small estates.
