Deceased Member’s Capital Credit Retirement Options
The heirs/legatees of a deceased Cooperative member have two options to receive the capital credits due to the deceased member.
The first option is the general retirement option which will pay the heirs/legatees of the deceased member the non-discounted capital credits according to the normal retirement process of the Cooperative. This means that heirs/legatees will receive the capital credits over an approximate 30-year period as approved by the Board of Directors of the Cooperative each year.
The second option is an early retirement of the capital credits of a deceased member to the heirs/legatees of the estate. Please note that this option does not apply to dissolution of a corporation or a partnership. With this option, all the capital in the deceased member’s account will be paid out immediately at a reduced amount based upon the present value of the future capital credit retirement payments. When the cooperative retires capital out of sequence, it has a real cost to the other members but may provide a benefit to the member’s heirs/legatees to receive the money sooner than otherwise. Therefore, the capital is reduced to reflect the time value of money for the capital credit retirements.
In order to assist members in making their selection, the heirs/legatees of a deceased member’s estate can contact the Cooperative and speak to a representative. Once a selection has been made, the heirs/legatees of the estate must complete and sign (in the presence of the public notary) the Request for Payment of Capital Credits form attached below. In addition to the completed form, a copy of the death certificate must be attached to the form and provided to the Cooperative. Once all documents have been completed they may be brought in or mailed us.
SouthEastern Illinois Electric Coop
P.O Box 1001
Carrier Mills, IL 62917