Who Gets Leftover Sale Proceeds When Someone Dies Without a Will — South Carolina

The information on this site is for general informational purposes only, may be outdated, and is not legal advice; do not rely on it without consulting your own attorney. See full disclaimer.

Short answer

If a person who owned sale proceeds dies without a will in South Carolina, those proceeds are typically part of the decedent’s probate estate. The personal representative appointed by the probate court (an administrator in an intestate case) collects the funds, pays debts and taxes, and then distributes any remaining money according to South Carolina’s intestate succession laws. Funds that were titled to a joint owner or had a valid beneficiary designation or payable-on-death (POD) instruction generally pass outside probate to that joint owner or beneficiary.

How it works under South Carolina law

Sale proceeds are treated as the decedent’s personal property if the decedent was the lawful owner of the money at the moment of death. The estate process in South Carolina generally follows these steps:

  1. Identify ownership and title. If the proceeds are in an account or escrow payable solely to the decedent, they become an asset of the decedent’s estate. If the proceeds were payable jointly or to a named beneficiary, those funds likely pass outside probate.
  2. Open probate / appoint an administrator. Because there is no will, a family member or other interested person must ask the probate court to appoint an administrator to manage the estate. South Carolina’s probate and intestacy rules are in the South Carolina Code, Title 62 (Probate, Trusts, and Fiduciaries): see the intestate succession chapter and the administration chapter for details: https://www.scstatehouse.gov/code/t62c002.php and https://www.scstatehouse.gov/code/t62c003.php.
  3. Collect and safeguard assets. The administrator collects the sale proceeds and other assets, secures records, and opens an estate bank account when appropriate.
  4. Pay debts, taxes, and administration costs. The administrator uses estate assets to pay valid creditor claims, funeral expenses, tax obligations, and reasonable administrator fees before any distribution to heirs.
  5. Distribute remaining funds under intestacy rules. After payment of debts and expenses, the administrator distributes the net estate according to South Carolina’s intestate succession laws (Title 62, Chapter 2). These statutes control which relatives inherit and in what order. See: https://www.scstatehouse.gov/code/t62c002.php.
  6. If no heirs exist, funds may escheat. If the court finds no legal heirs under the intestacy rules, the remaining funds may ultimately escheat to the State of South Carolina under applicable law.

Common fact patterns and outcomes (hypotheticals)

Below are short hypotheticals to illustrate typical results under South Carolina law:

  • Proceeds in the decedent’s sole name: Proceeds belong to the estate and go through probate. The administrator pays debts and then distributes the remainder to heirs under intestacy.
  • Proceeds in a joint account with right of survivorship: Joint owner typically receives the funds immediately by operation of law; the funds do not go through probate.
  • Proceeds deposited with a named beneficiary or payable-on-death (POD): A valid beneficiary designation directs the funds to the named beneficiary outside probate.
  • Sale closed but check not cashed and payable to decedent: The administrator will claim that check as an estate asset and follow the probate process.
  • Small estate considerations: South Carolina provides simplified or expedited procedures for smaller estates in some cases; the administrator or a potential heir should check the probate court’s guidance or consult counsel.

Steps you should take right away

  • Secure the death certificate and preserve any checks, escrow correspondence, bank statements, and closing documents related to the sale.
  • Check the ownership of the proceeds (sole ownership, joint with survivorship, or beneficiary/POD designation).
  • Contact the escrow company or bank to inform them of the death and ask what documentation they require before releasing funds.
  • If you believe probate is required, contact the probate court in the county where the decedent lived to start the administration process or learn about small‑estate options.
  • Consider hiring a South Carolina probate attorney if the estate has significant value, competing claimants, or complex issues (debts, taxes, real property, or out-of-state assets).

Helpful resources

  • South Carolina Code — Intestate succession (Title 62, Chapter 2): https://www.scstatehouse.gov/code/t62c002.php
  • South Carolina Code — Administration of estates (Title 62, Chapter 3): https://www.scstatehouse.gov/code/t62c003.php
  • Local probate court clerk’s office — each county’s clerk can explain filing procedures and required forms.

Helpful hints

  • Don’t assume funds are part of the estate—verify account titling and beneficiary designations first.
  • Act quickly to preserve documents and avoid delays; many institutions require an official death certificate and letters of administration before releasing funds.
  • Keep a detailed inventory and receipts for any estate expenses you pay; those may be reimbursable from the estate.
  • If multiple people claim the proceeds, ask the escrow agent to hold the funds and seek court guidance to avoid liability for improper distribution.
  • For modest estates, ask the probate clerk about simplified or small‑estate procedures that reduce cost and time.
  • When in doubt, consult a South Carolina probate attorney to protect your rights and comply with statutory deadlines.

Disclaimer

This article explains general principles under South Carolina law and is for educational purposes only. It is not legal advice, does not create an attorney‑client relationship, and may not apply to your situation. For specific legal guidance about sale proceeds and probate in South Carolina, consult a licensed attorney in the state or contact the probate court in the county where the decedent lived.

The information on this site is for general informational purposes only, may be outdated, and is not legal advice; do not rely on it without consulting your own attorney. See full disclaimer.