Capital Credit Estate Retirement Application

Capital Credit Estate Retirement Application

The Cooperative's Board of Directors will allow the capital credits to be retired early or paid back to the legal representative(s) of your family member's estate.  Capital credits that are claimed early due to the death of a family member are returned at a discounted rate.  This discount rate is used to determine the net present value of the immediate payout of the deceased member's capital credits.  Present value is a calculation to determine the current value of a future payment (the current value of $1 increases as time passes).  The discount or present value rate for an immediate estate payout is calculated using:  (1) the deceased member's capital credit account balance to be paid out in future years;  (2) an interest rate which is equivalent to the Cooperative's current weighted average cost of capital;  (3) the Cooperative's current capital credit payout rotation cycle.  Forms to apply for an estate retirement payout are available at both of the Cooperative's office locations.  Forms may also be downloaded here.  The required paperwork is to be received by March 31st of each year to eligible for an estate retirement payout in that year, pending the approval of the Cooperative's Board of Directors.