What is the Threshold for an Estate to go to Probate in South Carolina?

Probate isn’t always required in South Carolina, but it comes into play for estates valued above a certain amount. As you may know, probate can be a long and drawn out process that delays the passing of assets to beneficiaries. A good estate plan cuts down on the hassle and tension that accompanies probate. For a complimentary consultation with an estate planning attorney in Wilmington, NC or the coastal SC area, contact us by phone or email.

What is the Probate Threshold in South Carolina?

The current threshold for bypassing probate in South Carolina is set at $25,000. If an estate’s total assets fall below this amount, beneficiaries may use a simplified procedure, known as a small estate affidavit, to claim their inheritance. We will cover this affidavit in greater detail below.

This $25,000 threshold applies to bank accounts, vehicles, or personal items. Real estate, however, often requires a more involved process, even in small estates. Still, when the total estate’s value remains under the threshold, families can complete the process with far less paperwork, time, and cost.

What Qualifies as a “Small Estate” in SC?

If an estate is valued at or below the $25,000 threshold, it would be considered small. This figure includes only assets that would ordinarily go through probate, so it doesn’t apply to assets that pass outside of probate, like jointly owned property or accounts with designated beneficiaries. For example, life insurance policies or retirement accounts with beneficiaries named do not count toward the estate’s value for probate purposes. Instead, they transfer directly to the named beneficiaries. This distinction allows families to inherit certain assets quickly, without waiting for the probate process to conclude.

The small estate affidavit process is designed to handle relatively simple estates, like those without extensive debts. If you are unsure if probate is required for an estate, please contact our Myrtle Beach estate planning attorneys for a complimentary consultation.

What is the Small Estate Affidavit in SC?

When an estate qualifies as a “small estate,” South Carolina offers an option known as the small estate affidavit. This affidavit provides a quick way for heirs to collect assets without the court’s oversight. A filed affidavit allows the transfer of certain assets directly to beneficiaries rather than going through a court-appointed personal representative. The small estate affidavit is typically available 30 days after the person’s death.

This saves you from filing a petition and waiting for the court to review it before appointing a personal representative. All you need to do is complete the affidavit, file it with the court, and present it to financial institutions holding the deceased’s assets.

What Happens if the Estate Exceeds the Threshold?

If an estate’s value exceeds the $25,000 threshold, it must go through probate. In this case, the court appoints a personal representative to oversee the estate’s administration, which includes paying off debts, notifying creditors, and distributing assets according to the will (or state laws if no will exists). Probate takes a minimum of 8 months, but keep in mind that “informal” probate is much faster than “formal” probate.

Informal probate is often available when there are no disputes among heirs. It tends to be faster and less costly than formal probate. In these cases, a personal representative works with the court to submit necessary documents, manage asset distribution, and complete the process without requiring multiple court appearances.

If there’s a large estate in question, or if there are disputes among heirs, the court may require a formal probate process. If this is the case for your family in South Carolina, call our probate attorneys - we will help you through the process.

What is the Purpose of Probate?

Probate is the legal process that verifies a deceased person’s will and oversees the distribution of their assets. During probate, the court confirms the will’s authenticity, appoints a personal representative, and supervises the transfer of assets to the rightful heirs. This process protects both creditors and beneficiaries, as it creates a clear pathway for settling any debts and ensures that assets go to the intended parties.

When Real Estate is Involved

Real estate often complicates probate, even in smaller estates. In South Carolina, if the deceased person owned real property in their name alone, the property generally must go through probate to transfer ownership. Real estate that’s jointly owned, however, passes directly to the surviving owner and avoids probate altogether.

Prevent Probate With Professional Estate Planning

Assets with transfer-on-death (TOD) or payable-on-death (POD) designations transfer directly to beneficiaries (thereby avoiding probate), and other tools, like trusts, allow assets to pass outside of probate. Whether you have substantial wealth or not, working with an experienced attorney for wills can make life much easier on your heirs after you pass.

Setting up joint ownership is another good way to avoid probate. Jointly owned assets automatically transfer to the surviving owner upon death by operation of law. There are risks involved with joint ownership of any asset however; as soon as you place someone on your asset as a joint owner, you are assuming any debts and liabilities that they may incur.

Contact an Estate Planning Attorney in SC if You Have Questions

Bespoke Estate Law serves clients in Myrtle Beach and nearby areas. We have helped hundreds of people create personalized estate plans that reduce the burdens of probate. Whether you need to write a will, hire a probate attorney, set up a trust, or pursue other estate planning objectives, call us today.