Disclaimer: This blog post is provided for informational purposes only and does not constitute legal advice.
Detailed Answer
During the probate process in South Carolina, the personal representative has a fiduciary duty to preserve estate assets and ensure all legitimate expenses and ongoing bills are paid from estate funds. Proper management prevents depletion of assets and shields the representative from personal liability.
1. Appointment and Authority
The probate court issues Letters of Administration when you file the will or a petition to open probate. These letters grant you the authority to collect assets, pay debts, and manage ongoing obligations under South Carolina law.
2. Opening an Estate Bank Account
After receiving Letters of Administration, open a dedicated estate checking account. Deposit all estate funds here to maintain clear records and separate personal assets from estate assets.
3. Inventory, Appraisal, and Record-Keeping
Within 60 days of appointment, file an inventory and appraisal with the probate court as required by SC Code Ann. §62-3-501. Keep meticulous records of all receipts, disbursements, and invoices.
4. Identifying and Prioritizing Expenses
List all bills and claims against the estate. Pay funeral expenses, taxes, and administration costs first. Follow the priority scheme set out in SC Code Ann. §62-3-803, which governs the order for paying debts and expenses.
5. Managing Ongoing Bills
- Mortgage and Rent: Continue mortgage payments or rent to avoid foreclosure or eviction.
- Utilities: Keep electricity, water, and other utilities active to preserve property value.
- Insurance: Maintain homeowners, auto, or liability insurance to guard against losses.
- Property Taxes: Pay real estate taxes to prevent penalties and tax liens.
Use the estate account for these payments. If estate assets are insufficient, consult the court for guidance before paying from personal funds.
6. Court Approval for Extraordinary Expenses
For major repairs or large disbursements, you may need probate court approval under your authority as outlined in SC Code Ann. §62-3-709. File a petition describing the expense and justification.
7. Interim Accounting and Final Reporting
File interim and final accountings with the court under SC Code Ann. §62-3-802. These reports summarize assets, liabilities, expenses paid, and remaining distributions to beneficiaries.
Helpful Hints
- Maintain a detailed ledger of all transactions in the estate bank account.
- Set reminders for creditor claim deadlines (generally 8 months per SC Code Ann. §62-3-711).
- Communicate regularly with beneficiaries about the status of expenses and distributions.
- Retain professional appraisers and contractors for accurate valuations and fair costs.
- Consult a probate attorney if multiple properties, business interests, or tax issues arise.