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Panel clears bill to treat co-op patronage capital accounts as probate accounts, easing small estates
Summary
The House Domestic Relations subcommittee voted 5-0 to give House Bill 3,914 a favorable report; the bill would amend the South Carolina probate code to include patronage capital accounts held by electric or telephone cooperatives within the code's definition of an account, clarifying transfer rules on death.
The Domestic Relations, Business and Probate Law Subcommittee voted 5-0 to favorably report House Bill 3,914, which would amend the South Carolina probate code so that patronage capital accounts held by members of electric or telephone cooperatives are included in the probate-code definition of an "account." The bill would take effect July 1, 2025, if enacted.
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, which can create uncertainty about whether small amounts must pass through probate or transfer outside probate via survivorship provisions. The bill would clarify that patronage capital accounts pass according to survivorship language if the account so provides, or otherwise to the decedent’s estate.
A subcommittee member said the change was intended to avoid forcing heirs to open formal probate for negligible sums. The member cited an example provided by Representative Bailey — whose situation was described during the discussion — where a surviving relative faced opening probate to collect a $67 check. A Richland County probate judge consulted by the sponsor flagged no issues with the proposal.
The subcommittee ordered a favorable report by roll call, with the following vote: Representative Bernstein: Aye; Representative Paula Calhoun: Aye; Representative Guess: Aye; Representative John King: Aye; Representative David Martin: Aye. The vote was 5 in favor, none opposed. The bill will advance from committee for further House consideration.
