What Assets Can Be Transferred Outside of Probate in South Carolina?

When someone passes away in South Carolina, not all of their property is subject to probate court. Many people are surprised to learn this. The word “probate” tends to loom large in people’s minds, and many assume it is where everything goes, no matter what. But the truth is, quite a few assets can pass to heirs without going through the formal probate process at all.

This is not a loophole, but it is a function of how certain property is owned, titled, or structured. Understanding these distinctions can help families settle affairs faster and can make estate planning a more precise and practical effort.

For estate planning help in Wilmington, NC, Myrtle Beach, or anywhere in the surrounding areas, contact Bespoke Estate Law. We’d be happy to speak with you.

Some Property Transfers Without Probate

Some assets come with built-in instructions for what happens after the owner dies. These are called non-probate assets. The probate court never sees them, because the transfer happens automatically under contract or title law.

Jointly owned property is one example. If two people own a bank account or piece of real estate with rights of survivorship, then the surviving owner receives the entire property by operation of law. It does not matter what the will says. The ownership shift happens outside of court.

Accounts that name a beneficiary, like life insurance, retirement plans, or payable-on-death (POD) bank accounts, can also skip probate. As long as a beneficiary is named and still living, those funds transfer directly. This process involves paperwork, but not the court. South Carolina law specifically supports this kind of arrangement. For example, the Uniform Transfer on Death Security Registration Act allows brokerage accounts to pass to a named person when the original account holder dies.

Real Estate and How It Is Titled

Real property can make things more complicated. Much depends on how the title is held. Property in one person’s name alone (without a survivorship designation) will usually go through probate. But if the deed includes language such as “joint tenants with rights of survivorship,” then the surviving owner typically receives the entire property without court involvement.

That phrase must be in the deed itself. It cannot be assumed or added later without retitling. South Carolina does not offer transfer-on-death deeds for real estate, which some other states allow. So, if you want real estate to pass outside of probate, you either need joint ownership with survivorship rights or to place the property in a revocable living trust during your lifetime.

More detail on how probate treats real property can be found on the South Carolina Judicial Department’s Probate FAQ page. The state outlines how estates are handled, who has priority, and what tools may simplify the process.

The Role of Beneficiary Designations

Many people fill out beneficiary forms once and never revisit them, but bear in mind that those forms are critical. A named beneficiary on a life insurance policy or IRA will override anything written in a will. If someone updates their will to exclude a former spouse but forgets to update the account, the original beneficiary may still receive the funds.

These designations are not just paperwork. They are legally binding contracts. They determine who receives the asset and bypass probate entirely. That can be an advantage, but it also demands attention. Failing to update them can lead to outcomes that are at odds with your wishes.

How Trusts Function Outside Probate

A revocable living trust offers one of the most comprehensive tools to avoid probate. Property titled in the name of the trust belongs to the trust, not the individual, so it does not pass through the estate. After death, the successor trustee follows instructions written into the trust document and distributes the property accordingly.

This method is efficient and private. It works well for people with multiple properties, blended families, or any situation where court supervision might cause delay or conflict.

South Carolina recognizes and regulates trusts under the South Carolina Trust Code, which spells out how trusts are formed, managed, and interpreted.

The key to a trust’s effectiveness, though, lies in the details. If you create a trust but forget to fund it, meaning you do not retitle property into the trust’s name, then that property may still be subject to probate. This is one of the most common mistakes seen in DIY estate planning.

Small Estates May Qualify for a Simpler Process

Even if assets must go through probate, there is a simplified path for smaller estates. South Carolina allows for a streamlined procedure when the total value of the probate estate is $25,000 or less and does not include real estate. Heirs may be able to use a small estate affidavit to claim the property without formal probate administration.

Forms for this process are available on the South Carolina Courts Form Search page. Not every estate qualifies, but when it does, the time and cost savings can be significant.

Why This Matters

When people think about estate planning, they often focus on writing a will. That is important, but it is only one part of the equation. Much of your property may pass to others based on title, contract, or account designation. This makes it essential to understand what probate does, what it does not do, and where it fits into your broader planning goals.

Failing to plan for non-probate transfers can create confusion, leave out intended beneficiaries, or increase the chances of conflict. With the right structure in place, many of these problems can be avoided entirely.

Estate planning and trust formation in Myrtle Beach is about making life easier for the people you care about. Knowing which assets will pass through probate (and which will not) is a good first step.