Overview
This article explains, in clear steps, how the remaining estate funds are distributed to a decedent’s children in South Carolina after the estate has paid taxes, valid creditor claims, and administration expenses. It assumes basic facts: an estate is open in probate, all debts and expenses have been addressed, and the executor or personal representative is ready to distribute the residue of the estate.
Detailed Answer: Step-by-step process for distribution in South Carolina
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Confirm authority to distribute.
The personal representative (called the executor if named in a will) must have legal authority to make distributions. That authority usually comes from the decedent’s will and a probate court order admitting the will and appointing the personal representative, or from the court appointment in an intestate (no will) case. Distributions should follow the will’s terms or, if there is no will, South Carolina’s intestacy rules found in the South Carolina Probate Code (Title 62).
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Complete inventory, accounting, and payment of taxes/claims.
Before distribution, the representative must finish the estate inventory, pay or reserve for valid creditor claims, and file required tax returns for the estate or decedent (income tax and, if applicable, federal estate tax). Keep written records and receipts for every payment. In South Carolina, see South Carolina Code Title 62 for probate procedures: South Carolina Code: Title 62.
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Prepare final accounting and petition for distribution.
The representative prepares a final accounting showing all estate receipts, payments, and the net residue. The representative then files a petition (or motion) with the probate court asking for approval of the accounting and for an order directing distribution of the remaining estate funds to the beneficiaries (the children in this scenario). The court may require a hearing or permit distribution after statutory notice to interested parties.
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Court review and order of distribution.
If the probate court approves the accounting and there are no unresolved objections, the court issues an order directing how the residue should be distributed. If there is a valid will, the order follows the will. If there is no will, distribution follows South Carolina’s intestacy rules for descendants (children and their descendants). The court’s order protects the representative and allows banks or title companies to accept the transfer instructions.
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Determine each child’s share under the will or intestacy.
With a will: follow the will’s percentages or specific bequests. Without a will: South Carolina’s intestacy rules determine who inherits and in what shares. Generally, children inherit the decedent’s estate per the intestacy rules; if a child predeceased the decedent but left surviving descendants (grandchildren of the decedent), those descendants typically inherit by representation (the deceased child’s share passes to their issue). See Title 62 for details: SC Code Title 62.
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Handle special situations for beneficiaries.
If a beneficiary is a minor or incapacitated, funds usually cannot be turned directly over to that person. Options include (a) paying funds to a court-appointed guardian, (b) establishing a minor’s trust or custodial account, or (c) obtaining a court order authorizing a specific transfer. If a beneficiary owes money to the estate or has creditor claims against the estate, discuss offsets or court approval before distribution.
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Make the distributions.
Once the court order is in place, the representative distributes estate funds by check or wire, or transfers titled assets as directed. Maintain proof of each distribution (canceled checks, receipts, bank records, or acknowledged receipts signed by beneficiaries). If the will directs payment to a beneficiary’s attorney or trustee, follow those directions and keep documentation.
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Close the estate officially.
After distribution, file the final accounting and a petition to close the estate with the probate court. Obtain the court’s final discharge of the personal representative if required. Keep estate records for several years in case of later tax or creditor issues.
Short hypothetical to illustrate
Suppose a decedent leaves a $200,000 residuary estate and two adult children named as equal beneficiaries. After paying funeral costs, administration expenses, and verified creditor claims, $150,000 remains. The personal representative files a final accounting and obtains a court order approving distribution. Each child receives $75,000 (half of the residue). If one child had died before the decedent but left two children of their own, those two grandchildren would typically split that deceased child’s share.
Key South Carolina legal references
- South Carolina Code, Title 62 — Estates and Trusts (probate, wills, intestate succession, personal representatives)
- Probate court forms and procedure: visit the South Carolina Judicial Branch website at sccourts.org for local probate court contacts and forms.
Helpful Hints
- Keep meticulous records. Save receipts, bank statements, invoices, and every creditor claim or release.
- Obtain Social Security numbers and contact information for each child. You’ll typically need SSNs for tax reporting and for issuing distribution checks.
- Obtain an Employer Identification Number (EIN) for the estate if it will receive income after death or if required by the IRS.
- Do not distribute funds until the claims period has passed or valid creditor claims are resolved or reserved. Distributing too early can expose the personal representative to personal liability.
- If a beneficiary is a minor or incapacitated, consult the probate court or an attorney about guardianships, custodial accounts, or statutory transfers.
- If beneficiaries disagree about distribution, consider mediation or legal counsel before the court hearing to limit delay and expense.
- Even when estate amounts are small, check whether simplified or summary procedures apply in South Carolina for small estates to avoid full probate. The probate court can advise on local thresholds and procedures.
- Maintain copies of the court’s distribution order. Banks and title companies often require a certified copy before releasing funds or transferring assets.
Where to get help
If you are a personal representative or an heir and you have questions about valuation, tax filings, handling creditor claims, or special beneficiary situations (minors, incapacity, litigation among heirs), consult a probate attorney licensed in South Carolina or contact your local probate court for guidance and required forms.
Disclaimer
This article explains general principles under South Carolina law and is for informational purposes only. It is not legal advice. For advice about your specific situation, consult a licensed South Carolina attorney.