Turner Padget Insights
4 Things to Know about Estate Planning in South Carolina
Posted On January 7, 2025
As time passes, we become aware of its fleeting nature. This often prompts us to consider the security of our financial future and how to ensure our affairs are in order when our time comes.
Here are some key things to know about estate planning in South Carolina:
1. Understand South Carolina’s Unique Rules
South Carolina has specific rules regarding property transfers after death. A complete estate plan, including the documents we outline below, ensures that your wishes will be followed. Estate planning covers transferring and controlling your wealth after you die or are no longer capable of making decisions for yourself.
2. Tailor Your Estate Plan to Your Needs
Your estate plan may vary based on your goals or assets. Do you own a family business or multiple pieces of real estate? Are you in a second marriage? Creating a consistent, comprehensive plan ensures that someone can step in to manage your assets if you can’t do it, along with clear rules by which they can do so.
3. Essential Documents in an Estate Plan
We typically recommend the following four documents:
Will. When you die, a will goes into effect and tells the court who gets your property. Without one, South Carolina law dictates that half of your property will pass to your surviving spouse, and the other half will be distributed equally among your children. This can be complicated if your children are under 18 at the time of your death and your spouse needs to make major financial decisions such as selling your house. One note to keep in mind is that even if a spouse omits another spouse from his or her will, under South Carolina’s elective share law, a spouse is entitled to one-third of the deceased spouse’s estate under many circumstances.
Durable Power of Attorney. A durable power of attorney takes effect during your lifetime and names someone as your agent to handle your property if you cannot do so. This includes personal finances, real estate, investments, and vehicles. Notably, South Carolina law requires specific grants of authority for certain actions, such as creating or amending a trust, making a gift, changing a beneficiary designation, and accessing a safe deposit box. (If you haven’t looked at your existing power of attorney document since 2017, it might need updating as the laws changed that year.)
Health Care Power of Attorney. This document takes effect when you’re still alive and designates an agent to make medical decisions if you cannot. A doctor must determine that you cannot make medical decisions or communicate your wishes. This is crucial during situations like a decline from a degenerative disease or a surgical procedure requiring general anesthesia.
Living Will. Known in South Carolina as a “Declaration of a Desire for a Natural Death,” this document specifies that you want to avoid being kept on life support if you are terminally ill and meet other statutory qualifications. You can outline whether you want nutrition and hydration provided in certain situations.
4. Regularly Review and Update Your Plan
Consider reviewing your estate plan every five years or after significant life changes, such as the birth or death of a child, divorce, or the sale of real estate. This allows you to identify and implement necessary changes. Consulting with an estate planning attorney can ensure your plan will meet your goals and provide peace of mind for your family after you are gone.
These steps will help secure your family’s financial future and ensure your wishes are honored.
Jeff Payne is a shareholder in our Florence office and a member of our Executive Committee. He devotes his practice to business, construction, and probate litigation, as well as business counseling and transactional work.
