When a current or former member passes away, there are two options available with the member's capital credit account.
One option is for the member's beneficiaries to continue to receive a portion of the capital credit account balance each time capital credits are paid out. A percentage of each member's balance is generally paid out each year.
The advantage to leaving the account as is and receiving payments as they are made, is that the full balance or 100% of the account is paid.
The disadvantage is that it takes several years, likely 10 years or more, to pay out a capital credit account.
The second option and most common one is to settle the capital credit account. The member's beneficiaries, with proper documentation, can receive 50% of the capital credit balance.
The account is discounted due to early payment rather than waiting a number of years as in the first option listed.
Please feel free to contact the AEC office for further information 951-763-4333 or e-mail firstname.lastname@example.org