Disclaimer: This article provides general information about settling an estate under South Carolina law. This is not legal advice. Laws change and every case is different. Consult a licensed South Carolina attorney for advice about your situation.
Detailed Answer
Below are the common steps someone in South Carolina generally follows to settle a parent’s estate when the parent lived in South Carolina but also owned property in another state. The steps assume no unusual facts (no contested will, no complex business interests). Follow these steps as a roadmap and check specific requirements with an attorney or the courts.
-
Confirm domicile and locate the original will (if any).
The estate is probated in the state and county where the decedent was domiciled at death. If your parent lived in South Carolina, probate normally starts in the county where they were domiciled. Locate the original will and any estate planning documents. If there is a will, it directs who should serve as personal representative (executor); if not, the court will appoint an administrator under South Carolina law. See South Carolina Code Title 62 for the governing law: South Carolina Code Title 62.
-
Open probate in the correct South Carolina probate court.
File a petition with the probate court (or clerk’s office, depending on your county) to admit the will to probate and to appoint a personal representative, or to open administration if there is no will. The court issues Letters Testamentary or Letters of Administration that give authority to act for the estate. The probate court in South Carolina handles appointment, inventory, creditor notices, and distribution under Title 62. (See general statutory guidance: Title 62, SC Code.)
-
Identify and secure assets in South Carolina.
Make an inventory of bank accounts, investment and retirement accounts, real estate, personal property, life insurance, and business interests. Secure physical property (homes, vehicles, valuable personal items) and notify institutions of the decedent’s death. The personal representative must preserve estate assets and may need to obtain appraisals for real property or business interests.
-
Provide notice to creditors and pay valid debts and expenses.
Under South Carolina probate procedures, the personal representative must notify known creditors and may be required to publish notice so unknown creditors can present claims. The estate must pay valid debts, funeral expenses, and administration costs before distributions. Consult Title 62 for creditor and administration provisions: SC Code Title 62.
-
Handle taxes.
Determine whether there are federal estate tax or South Carolina income tax obligations. South Carolina does not currently impose a separate estate tax like some states do, but federal filing (Form 706) may be required for large estates. Also file the decedent’s final income tax returns and any required state returns. Work with an accountant or attorney if the estate may trigger federal estate tax.
-
Distribute estate assets in South Carolina.
After debts and taxes are paid and the estate has been administered, the personal representative distributes remaining assets to beneficiaries under the will or, if there is no will, under South Carolina intestacy rules (see Title 62). The court usually requires an accounting and an order approving final distribution before closing the estate.
-
Handle property located in another state (ancillary administration).
Real property and some tangible property located outside South Carolina generally must be cleared through the courts in the state where the property is located. That usually means starting an ancillary probate or ancillary administration in the other state. Typical steps include:
- Obtain certified copies of the South Carolina Letters Testamentary or Letters of Administration from the South Carolina court.
- File those letters and a petition in the probate court of the other state to be admitted to act there for purposes of that property (ancillary personal representative).
- Follow the other state’s probate process for that property (notice to creditors there, payment of local taxes, transfer of title or sale proceeds).
Rules and thresholds vary by state. Some states permit transfer by affidavit or a simplified ancillary process for small estates; others require full ancillary administration. Because procedures differ, consult an attorney licensed in the other state or a South Carolina attorney experienced with multi‑state estates.
-
Coordinate sales, mortgages, and property taxes across states.
If you need to sell out‑of‑state real property, check local requirements (probate clearance, deed transfer, lender approvals). Ensure property tax and homeowner association obligations are current. If the property has a mortgage, coordinate with the lender about payoff or assumption rules.
-
Close the estate formally in South Carolina and the other state.
After distributions and all claims are resolved, file a final accounting and a petition to close the estate in South Carolina. Likewise, obtain whatever court orders or closings are required in the ancillary state. Keep complete records and certified court orders transferring title or distributing out‑of‑state assets.
Key South Carolina statutory guidance is collected in South Carolina Code Title 62 (Probate, Decedents’ Estates, and Fiduciaries): https://www.scstatehouse.gov/code/title62.php.
Helpful Hints
- Start by finding the original will, death certificate, and any estate planning documents. Courts require originals for probate.
- Obtain multiple certified copies of the death certificate early; banks, government agencies, and courts will request them.
- If the estate looks small, ask whether South Carolina or the other state has a simplified or small‑estate affidavit process that avoids full probate.
- For out‑of‑state real property, research the other state’s probate requirements before listing property for sale.
- Hire a local attorney in the other state for ancillary probate work; rules and forms vary by state and county.
- Keep careful, dated records of all estate transactions, communications with creditors, and distributions. That makes the accounting easier and reduces disputes.
- Talk to a tax professional about potential federal estate tax, income tax on estate assets, or tax consequences from selling real estate in another state.
- If beneficiaries dispute the will or administration, contact an attorney promptly — disputes often have strict filing deadlines.
- Use the South Carolina statutes as a reference: SC Code Title 62, and contact the county probate court or South Carolina Judicial Department for local procedures and forms.
When to Get Legal Help
Consider hiring a South Carolina probate attorney if any of the following apply: the will is contested, the estate is complex, there are tax issues, significant out‑of‑state property needs ancillary administration, or you face creditor or beneficiary disputes. An attorney can prepare petitions, obtain court orders, coordinate ancillary filings in the other state, and advise on tax filings.