Patronage Capital Payout Options
Summary
Patronage capital is typically disbursed over several years as decided by the Cooperatives board. In Wisconsin, there is no law mandating immediate full payment. The discounted lump sum offer is likely due to the time value of money. For specific advice, consult with a local attorney.Full Conversation
I received a letter from Adams-Columbia Electric Cooperative that my deceased mother had unclaimed patronage capital and to contact them. I contacted them today and I was told that she had $*.* in patronage capital owed to her. They told me if I wanted the full amount of $*.* It would come in yearly installments. If I wanted it as a one lump pay out I would get $*.*. Can they do this legally? Why don't they just pay me the full amount? My mother passed away 4 years ago.
Hello ****, the scenario you're describing is likely due to the following:
*. Patronage capital is typically disbursed over several years as decided by the Cooperative's board.
*. In Wisconsin, there is no law mandating immediate full payment.
*. The discounted lump sum offer is likely due to the time value of money.
However, for specific advice, you should consult with a local attorney.