Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Probate Code Patronage Capital topic
No spam. Unsubscribe anytime.
Subcommittee clears bill adding cooperative patronage capital to probate account definition
Summary
House Bill 3,914 would amend the South Carolina Probate Code to treat patronage capital accounts held by electric or telephone coop members as accounts for probate purposes; the subcommittee gave the bill a favorable report.
The Domestic Relations, Business and Probate Law Subcommittee gave a favorable report to House Bill 3,914, which would amend the South Carolina Probate Code to include patronage capital accounts held by members of electric or telephone cooperatives within the definition of an "account" for probate purposes.
Patronage capital accounts reflect a cooperative member’s share of surplus earnings allocated annually based on payments for services or capital contributions. Under current law, those accounts are not explicitly treated as financial accounts for probate purposes. Including them in the probate-code definition would clarify whether such funds pass directly to surviving co-owners when survivorship is present or instead pass into a decedent’s estate.
A sponsor said the change is aimed at avoiding burdensome probate for small amounts. The sponsor described a local example in which a decedent’s only cooperative-related payment was a $67 check; under current probate practice, the heir would have had to open a probate estate for that amount.
The bill would take effect July 1, 2025, if enacted. A subcommittee member said the Richland County probate judge reviewed the proposal and "didn't see any issues with this."
A roll-call vote recorded five ayes and no votes against — Representative Bernstein, Representative Paula Calhoun, Representative Guess, Representative John King and Representative David Martin — giving HB 3,914 a favorable report from the subcommittee.
The favorable report advances the bill to the next House stage.
