Detailed Answer
When someone passes away in South Carolina, their estate goes through probate. Probate is the court-supervised process that gathers assets, pays debts and expenses, then distributes what remains. The leftover assets are called the residuary estate. Here’s how you calculate those remaining assets under South Carolina law.
1. Identify and Value All Estate Assets
The personal representative (executor) must compile a full list of the decedent’s assets. This includes bank accounts, real estate, investments, personal property and business interests. Within 90 days of appointment, the representative must file an inventory and appraisal with the probate court. (See SC Code §62-3-1001).
2. Give Notice to Creditors
Creditors have a limited time to file claims against the estate. The personal representative publishes a notice in a local paper and sends direct notice to known creditors. Creditors then have six months (or longer if notice was delayed) to submit their claims. (See SC Code §62-3-805).
3. Pay Debts, Taxes, and Administration Expenses
Once valid creditor claims are allowed, the representative pays:
- Funeral expenses and final medical bills
- Probate court fees and representative’s fiduciary fees
- Federal and state estate taxes, if applicable
- Other approved creditor claims
These payments have legal priority under South Carolina statutes. (See SC Code §62-3-607).
4. Calculate the Residuary Estate
After all debts, taxes and expenses are paid, the remaining assets form the residuary estate. This includes any property not specifically gifted in the will and any surplus from sale of estate assets. The personal representative then prepares a final accounting to show:
- Total estate value
- All debts and expenses paid
- Balance of assets remaining
The balance shown in this accounting is the pool of assets available for distribution to beneficiaries. (See SC Code §62-3-1008).
5. Distribute Remaining Assets to Beneficiaries
Finally, the residuary estate passes to beneficiaries according to the will or, if there is no will, under South Carolina’s intestacy rules. Once distribution is complete, the probate court issues an order closing the estate.
Disclaimer: This article is for informational purposes only and does not constitute legal advice. Always consult a qualified attorney for advice on your specific situation.
Helpful Hints
- Keep detailed records of every transaction. Accurate bookkeeping streamlines final accounting.
- Confirm deadlines for creditor claims and tax filings. Missing a deadline can increase personal liability for the representative.
- Obtain professional appraisals for real estate and high-value personal property to avoid disputes.
- Review the will closely for specific gifts, since these reduce the residuary estate pool.
- Consult with a probate attorney early to navigate complex tax or creditor issues.