Paying Out Capital Credit Estates

Do you know that if you are the Personal Representative for someone’s estate who was a member of OEC, you can request an estate payout of their capital credit account?
Each year, the profits of the co-op are given back to members in the form of capital credits.  When an amount is deposited into a member’s capital credit account that is the value of the money twenty years from the year it is deposited.  If you are eligible to receive an estate payout, you will get that at the net present value which is what the account is worth today.  Think of it as a savings bond that hasn’t matured; if you cash it in early, you will not receive the full value.
When a Personal Representative calls or comes in to the office about an estate payout, you have two choices:
you can choose to receive an immediate payout of the estate at the net present value or,
you can receive the normal retirements from the account. With this option, you would receive all of the money in the account but it will take about 20 years. 
Regardless of the option you choose, you must complete an affidavit stating you are the Personal Representative of the estate and it must be notarized.  Once that form is returned to the office, your name is added to the account so that any checks generated will come to you, whether it is the estate payout or normal retirements.
In the case of a member passing away and the remaining spouse requests the estate payout, the spouse would only be eligible to receive half of the capital credits in the account at the net present value. 
The most important information that you can take from this article is that if you are the Personal Representative of an estate in which capital credits may be available, call OEC to find out what your options are.