Capital Credit Beneficiaries FAQ

Can a commercial account name (or be named as) a beneficiary?

Commercial accounts, charitable organizations, trusts, or businesses cannot name a beneficiary, and they cannot be designated as a beneficiary.

Can I name a beneficiary if I have a joint account?

No, lump sum payments are not issued to the surviving member of a joint account. If two members (married or not married) have a joint account and one member passes away the surviving member becomes the sole owner of the capital credit funds. The surviving member will receive capital credits when general refunds are distributed. The surviving member can name a beneficiary when he/she is the sole account holder.

Do I need to complete a beneficiary form for each of my accounts?

We only need one form per member (not per account).

If I submit the beneficiary form now, can I change my beneficiary in the future?

Yes, you can submit a new form to identify a different beneficiary. A new form will supersede any previous forms.

Will the beneficiary be financially liable for any money I owe to SMECO?

No, beneficiaries aren’t financially liable for your outstanding payments.

How much will my beneficiary receive?

The actual amount to be distributed will be calculated at the time the beneficiary submits a claim for the capital credit funds. At the end of each year, SMECO allocates funds to members, so capital credits accumulate from year to year. When capital credits are disbursed in a lump sum payment, they are discounted based on the year the funds were allocated.

How does a beneficiary file a claim?

When someone notifies SMECO that the member is deceased, SMECO will mail a letter to the beneficiary explaining how to claim the capital credit funds. The beneficiary will be required to provide a death certificate and a copy of the front and back of a government-issued photo ID. Fill out the Beneficiary Request Form to claim the funds.

What if the house of the deceased member was owned by a husband and wife?  

The ownership of the property has no bearing on capital credits, and it does not matter who actually paid the SMECO bills. The capital credits belong to the person whose name was on the SMECO electric account. 

What if the deceased SMECO member had multiple accounts? Are they all included? 

Each SMECO member has one capital credit account even though they may have had multiple electric accounts.

Can capital credits be transferred to another account? 

The capital credits for the deceased member cannot be transferred to an active account.

Final Capital Credit Refund Amount

Please note that capital credits are accumulated based on the member’s electric usage and the amount they paid for electricity during the time they had SMECO electric service in their name. Each customer’s capital credit balance is unique and the final refund amount is determined by their capital credit balance. Some customers accumulate more capital credits than others because they use more electricity or had service for a longer time.

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