Subcommittee gives favorable report to bill treating cooperative patronage capital accounts as probate accounts

The Domestic Relations, Business and Probate Law Subcommittee voted 5-0 to give House Bill 3,914 a favorable report after members agreed the bill clarifies how cooperative "patronage capital" accounts are treated under the South Carolina Probate Code.

House Bill 3,914 would expand the probate code's definition of "account" to include patronage capital accounts held by members of electric or telephone cooperatives. Patronage capital accounts reflect a cooperative member's share of surplus earnings allocated annually; under current law such accounts are not explicitly treated like checking or savings accounts for probate purposes. The bill would clarify whether those funds pass directly to surviving co-owners where an account includes survivorship, or into the decedent's estate.

A subcommittee member said the bill would help prevent unnecessary probates in cases with only small cooperative payments. The member gave an example: in one situation discussed with Representative Bailey, a decedent's only cooperative payment was for $67; without the change a full probate estate might otherwise be required. The bill would take effect July 1, 2025, if enacted, the committee was told. The Richland County probate judge was reported to have no objection to the change.

The subcommittee recorded roll-call votes of "aye" from Representatives Bernstein, Calhoun, Guest, King and Martin. With a vote of 5 in favor and none against, House Bill 3,914 received a favorable report from the Domestic Relations, Business and Probate Law Subcommittee.