Detailed answer — step-by-step process under South Carolina law

This answer explains practical steps a personal representative (executor/administrator) should take to ensure third-party claims against an estate and all payments to third parties are properly handled and reflected in probate filings in South Carolina. It summarizes common statutory duties and accounting practices; it is not legal advice.

1. Know the basic statutory framework

   South Carolina’s probate law is codified in the Probate Code (Title 62). The Code sets out the personal representative’s duties to identify creditors, give notice, collect assets, pay valid claims, and file accountings with the court. See South Carolina Probate Code, Title 62: https://www.scstatehouse.gov/code/t62.php. For general probate court information, see the South Carolina Judicial Branch probate court page: https://www.sccourts.org/probate/.

2. Identify and notify potential creditors and claimants

   Immediately compile a list of known creditors and anyone who might assert a claim (medical providers, contractors, family members, government agencies, etc.). Follow the notice requirements in the Probate Code and local court rules—this usually includes sending direct notice to known creditors and publishing notice for unknown creditors. Proper notice preserves the court’s ability to approve actions and limits late claims.

3. Require written presentation of claims

   Ask claimants to present claims in writing and to provide supporting documents (invoices, contracts, statements). Preserve originals or certified copies. If a claim is disputed, document why (e.g., duplicate billing, statute of limitations, lack of contract).

4. Maintain a dedicated estate accounting system

   Use a separate bank account for estate funds. Record every transaction in a ledger: date, payee/claimant name, purpose, invoice number, check number or ACH reference, amount, and running balance. Consistent classification (claims paid, distributions to beneficiaries, administration expenses, taxes) makes court accountings clear and defensible.

5. Obtain and keep supporting documents for payments

   Every payment to a third party should be supported by at least one of the following: the claimant’s written claim, an approved invoice, a paid receipt, canceled check, bank statement showing the disbursement, or a court order authorizing the payment. Scan and index these documents so they can be attached to the estate accounting.

6. Record claim disposition in the probate file

   When you accept, partially accept, or deny a claim, create a short written ruling or memorandum and place it in the estate file. If the court is asked to approve allowance or disallowance, file the appropriate pleading (or a motion and order) and include your documentation. The court’s order or allowance should be reflected in the accounting entries.

7. File interim and final accountings that reconcile to bank statements

   South Carolina courts require the personal representative to file accountings showing receipts and disbursements and the status of estate assets. Make sure each accounting entry references supporting evidence (e.g., check numbers, invoice IDs). Reconcile the ledger to bank statements and attach copies or make them available to the court and interested parties.

8. Obtain court approval when required

   Certain payments may require prior court approval—unusual claims, large attorney or accountant fees, or distributions that could be contested. Where approval is required, file a petition, provide notice to interested parties, and obtain an order before paying. Document the order and record the payment against the approved item.

9. Use affidavits and declarations when helpful

   Affidavits from the personal representative attesting to the accuracy of the accounting and to steps taken (notice, claim handling) strengthen filings. Many courts accept or require verified accountings or sworn statements attesting to the accuracy of the records.

10. Respond promptly to inquiries and preserve communications

    Record and save emails, letters, and phone-call summaries with claimants and beneficiaries. Timely responses reduce misunderstandings and create a record showing the representative acted reasonably.

11. Retain records for the statutory period

    Keep estate records, account ledgers, paid invoices, and bank statements for the period required by law (and for a reasonable time after final distribution) in case of later audits, creditor claims, or beneficiary disputes.

12. When in doubt, get court guidance or a lawyer’s opinion

    If a claim is large, complex, or disputed, or if a proposed payment could create personal liability for the personal representative, seek court instructions or consult a probate attorney before paying.

How this appears in a probate filing: an accounting or petition filed with the probate court should list each claim and payment, identify whether the claim was allowed or disallowed (and on what basis), attach supporting invoices and receipts (or offer them at the hearing), and reconcile the estate ledger to current bank balances. If the court approved payment, include the court order or cite the docket entry in the accounting.

Why accurate recording matters: Clear records protect the personal representative from surcharge (liability), help beneficiaries understand distributions, allow the court to settle disputes, and make it likely that the estate will close without reopened litigation.

Helpful hints

• Open a dedicated estate bank account immediately and restrict estate transactions to that account.
• Number and index all invoices and payments; include invoice IDs in check and ACH memos.
• Keep originals of paid invoices and canceled checks; scanned copies are fine for filing but keep backups.
• Use plain-language memos in payments (e.g., “Payee Name — Invoice 2024-12 — Funeral expense”) to ease later reconciliation.
• Publish creditor notice as required and send certified mail to known creditors where proof of receipt is important.
• When you deny a claim, send a written denial that cites the reason (lack of documentation, expired statute, etc.).
• Track disputed claims separately in your ledger so allowed vs. disputed liabilities are obvious at a glance.
• For substantial or unusual claims, consider asking the court for an order allowing payment to avoid later personal liability.
• Keep beneficiaries informed with periodic statements; transparency reduces questions and objections.
• Consult a South Carolina probate attorney if you face complex creditor disputes, tax issues, or potential personal liability.