What Are the Inheritance Laws in South Carolina?

Each state has its own laws regarding how an individual’s estate will be distributed upon their death, especially where there is no valid will. If you’re estate planning, you may have wondered, “What are the inheritance laws in South Carolina?”

South Carolina’s laws, more commonly called the intestate succession laws, establish a hierarchy of heirs and explain the rights of surviving family members. Having a good understanding of these laws can make crafting your estate plan much easier.

Intestate Succession in South Carolina

When someone dies without a will in South Carolina, their estate is distributed according to intestate succession laws. The hierarchy of heirs starts with the spouse and children, and then other immediate family. This can be broken down as such:

• Surviving spouse and descendants. If the deceased leaves a spouse and children, the inheritance will be distributed equally between them.
• No surviving spouse or no children: If there is no surviving spouse but the deceased has children, the children receive the entire estate divided equally. However, if there are no children, the spouse receives the entire estate.
• The deceased’s parents or siblings. If there is no spouse and no children, any surviving parents of the deceased would inherit. The next in line after the parents would be any siblings of the deceased.
• No immediate family. If the deceased has no surviving spouse, children, or parents, the estate is distributed to more distant relatives, such as nieces and nephews. If no relatives can be found, all would-be inheritances revert to the state.

South Carolina’s Inheritance Provisions for Children

South Carolina law also includes specific provisions for children in inheritance matters. These include:

• Children born outside of marriage. If paternity is established before the father’s death, the child is able to inherit.
• Adopted children. A legally adopted child holds the same inheritance rights as biological children.
• Posthumous children. Children who were conceived before but born within ten months after the descendant’s death can inherit as if they were born during the deceased’s lifetime.
• Grandchildren. A grandchild only stands to inherit as a first-generation child of the deceased if their parents have also passed away.

Rights of the Surviving Spouse

Surviving spouses in South Carolina have specific rights in addition to intestate shares. For instance, a surviving spouse is entitled to receive what is called an elective share. This is one-third of the deceased’s probate estate, no matter the will’s provisions. The spouse can waive this right through a valid prenuptial agreement.

Surviving spouses may also receive certain exempt property and a homestead allowance, which provides additional financial support from the estate.

Probate in South Carolina

Probate involves a legal process that administers a deceased person’s estate. The probate process includes:

• Validating the will
• Identifying and appraising assets
• Paying taxes and debts
• Distributing property to beneficiaries

In York, SC, the Probate Court, located on South Congress Street, handles these cases. If there is no will, state laws determine how assets are distributed. York County processes about 2,250 probate cases each month, with only 147-207 of these cases being disposed monthly. Statewide, that total is nearly 55,000 probate cases.

In probate cases, hiring a York estate planning attorney can help you navigate the deadlines, paperwork, and court procedures. They can ensure the estate is settled legally.

Certain assets are not governed by intestate succession laws and pass directly to named beneficiaries or joint owners. These include:

• Life insurance proceeds, which are paid directly to the named beneficiary.
• Retirement accounts, which transfer to the designated beneficiary.
• Jointly owned property, which automatically passes to the surviving owner upon the other’s passing.

South Carolina does not impose an inheritance tax or an estate tax. In instances of very large estates, federal estate tax laws may apply.

FAQs

Q: What Is the Order of Inheritance in South Carolina?

A: The order of inheritance refers to the fact that if someone dies in South Carolina without a will, their assets are distributed according to state law. Therefore, if the deceased was married with children, the estate is split equally between the surviving spouse and children. If there are no children, the spouse inherits the entire estate. If there are children but no spouse, the children inherit. However, if there is no spouse or children, the estate then goes to the surviving parents, siblings, or the next closest relative.

Q: How Long Does an Heir Have to Claim Their Inheritance?

A: In South Carolina, heirs have eight months from the date of death to claim the inheritance. Debtors and creditors must act within that same timeframe. If anyone wants to contest a will, it must be done within a few months, as after probate closes, unclaimed assets go to the state. Having a probate attorney help you navigate this process is essential to help you better understand legal timelines.

Q: What Are the Rules With Inherited Money?

A: Inherited money in South Carolina is generally not taxed as income. Any dividends, interest, or gains from inherited assets, such as stocks or property, are taxable, however. Beneficiaries should report earnings on their personal income taxes as applicable. South Carolina does not enforce an inheritance tax, but large estates may be susceptible to federal taxes.

Q: How Do I Avoid Probate in South Carolina?

A: To avoid probate in South Carolina, individuals can use several legal strategies to transfer assets outside of the court process. Some ways to avoid probate involve establishing a revocable trust, naming beneficiaries on important accounts, such as insurance and retirement plans, and using payable-on-death designations. Joint ownership can also help you avoid probate for real estate property.

Contact a York Estate Planning Lawyer Today

To ensure your affairs are handled as you wish after your passing, hiring a York estate planning lawyer is critical for success. The team at Mack & Mack Attorneys can help you draft a will, set up a trust, or navigate the complex probate process. We work closely with clients to protect their assets and make sure their wishes are followed according to their desires.

Call our office today to schedule a consultation and learn more about the inheritance laws in South Carolina.