Determine Whether a Bank Account Falls Under the $20,000 Small‑Estate Limit in South Carolina

Short answer: To know whether a decedent’s bank account(s) are under the $20,000 small‑estate limit you must (1) identify which accounts and other assets are subject to probate, (2) add up the value of those probate assets as of the date of death, and (3) confirm South Carolina’s small‑estate rules and dollar threshold with the probate court or the state statutes. Many accounts (payable‑on‑death, beneficiary designations, and true joint accounts) do not count as probate assets. This article explains how to do those steps in plain language and where to get official confirmation.

Detailed answer — what to check and how to calculate

1. Understand what the small‑estate limit generally applies to

When people talk about a “$20,000 small estate limit” they usually mean a statutory simplified probate or small‑estate procedure that applies only if the total value of the decedent’s probate assets is at or below that dollar threshold. Probate assets are the things owned solely by the decedent that do not automatically pass to someone else on death.

2. Identify which accounts and assets might count

• Accounts owned solely in the decedent’s name (no beneficiary or pay‑on‑death [POD] designation and not jointly owned) generally count as probate assets.
• Accounts with a valid beneficiary designation or POD (“in trust for” or “payable on death”) usually pass outside probate and typically do not count toward the probate total.
• Joint accounts with right of survivorship typically pass to the surviving joint owner and often are not probate assets; however, banks sometimes freeze joint accounts until notified and may request documentation.
• Other probate assets include personal property, vehicles titled only to the decedent, and any other property the decedent owned alone without a transfer‑on‑death mechanism.
• Assets held in an inter vivos trust are generally outside probate and do not count.

3. Get accurate account balances as of the date of death

To determine if the total falls under $20,000, use the balances on the date of death (not a later or earlier date). Steps to obtain balances:

1. Locate the latest bank statements and online account summaries.
2. If statements are missing, contact each bank or credit union. Explain that the account owner died and request a certified statement or ledger showing the balance as of the date of death. Banks usually require a death certificate and identification for the person asking.
3. If the bank refuses, the probate court can issue a letter or order or you can request the account history through the court process; an attorney can help with this if needed.

4. Add up only the probate assets

Take the balances of accounts that are probate assets and add any other probate property values. Do not include amounts that pass automatically (POD, beneficiary, trust property, etc.). The result is the estate’s probate value. If that number is equal to or less than the small‑estate threshold you want to use (in this question, $20,000), you may be able to use the simplified procedure under South Carolina law or a bank’s small‑estate affidavit process — subject to the court’s rules and the bank’s policies.

5. Be careful about debts and creditors

Some states require that you account for debts before using a small‑estate procedure; others look only at gross probate assets. In practice, even if the estate’s probate assets fall under the dollar limit, you still need to consider outstanding funeral bills and creditor claims. Confirm the rule with the probate court or an attorney.

Practical example (hypothetical)

Example A: Decedent’s sole bank account in their name had $12,000. They had a savings account with a $4,500 balance and a CD worth $3,000. There were no beneficiary designations and no jointly owned accounts. Total probate assets = $12,000 + $4,500 + $3,000 = $19,500 — under $20,000, so a small‑estate procedure may be available.

Example B: Same facts except the savings account was a POD account naming the decedent’s child. That $4,500 would usually pass outside probate and would not count, lowering the probate total to $15,000.

How banks treat accounts at death

• Banks commonly freeze accounts when they learn of a death to protect against fraud. They will ask for a certified death certificate and identification before releasing funds.
• Even if an account is not a probate asset, a bank may require an affidavit and supporting documents (death certificate, pedigree/relationship proof) before paying out a POD or payable‑on‑death account.
• Each financial institution has its own internal policies controlling what documentation they accept. Contact the bank early to learn its requirements.

Confirm South Carolina law and local procedure

South Carolina’s probate and estate rules are in the South Carolina Code, Title 62 (Probate, Estates, and Fiduciaries). For the text of those statutes and to find the specific small‑estate or summary probate procedure that applies, consult the code and the local probate court.

South Carolina Code, Title 62: https://www.scstatehouse.gov/code/title62.php

When to involve the probate court or an attorney

• If you cannot determine which accounts are probate assets.
• If banks refuse to provide balances or will not release funds without a court order.
• If the total is near the threshold and there is ambiguity about joint ownership or beneficiary designations.
• If there are creditor claims, disputes among heirs, or complex assets (vehicles, real estate, business interests).

Checklist: documents to gather

• Certified copy of the decedent’s death certificate.
• Recent bank statements and account numbers for each financial institution.
• Any account paperwork showing POD/beneficiary or joint ownership information.
• IDs for the person seeking payment (government photo ID).
• Proof of relationship for heirs (birth certificates, marriage certificate) if required by the bank or court.

Helpful Hints

• Start by calling the bank’s probate or estate department. Ask what they require to verify balances and to release funds when a customer dies.
• Ask the bank for a certified statement of the account balance as of the date of death. That document is the best evidence of the balance for small‑estate purposes.
• Don’t assume a joint account won’t count; confirm with the bank and, if needed, the probate court.
• Keep careful records of all calls, names, dates, and documents you send and receive.
• If necessary, visit the county probate court clerk in person or call them to ask about the small‑estate affidavit or summary probate process and any forms they provide.
• When in doubt, consult a probate attorney for a brief consultation; inexpensive limited‑scope help can save time and prevent mistakes.

Where to get official information in South Carolina

Look up South Carolina Code, Title 62 (probate statutes) here: https://www.scstatehouse.gov/code/title62.php. Also contact the probate or clerk of court office in the county where the decedent lived to learn local forms and procedures.

Disclaimer: This article is for general informational purposes only and does not constitute legal advice. I am not a lawyer. For legal advice specific to your situation, contact a licensed South Carolina attorney or the probate court.