South Carolina adopted the Uniform Trust Code in 2006, providing a comprehensive and modern framework for trust administration. The state offers a few notable features that set it apart from other UTC states in the Southeast, including silent trust provisions and a relatively flexible approach to trust modification. The South Carolina Trust Code is found at S.C. Code Ann. Sections 62-7-101 and following.
This guide applies to both revocable and irrevocable trusts in South Carolina.
Where South Carolina trust law lives
South Carolina's trust statutes are codified in S.C. Code Ann. Title 62, Article 7. The code is part of the broader South Carolina Probate Code and follows the standard UTC structure. South Carolina's adoption includes several state-specific modifications, particularly around beneficiary notice requirements and the flexibility given to the trust instrument.
Accounting and notice requirements
South Carolina follows the UTC's standard notice framework. Trustees must notify qualified beneficiaries within 60 days of accepting trusteeship of an irrevocable trust. The notice must include the trust's existence, the trustee's contact information, and the beneficiary's right to request a copy of the trust instrument and annual accountings.
Annual accounting is required to qualified beneficiaries under the default rules. The trust must include information about receipts, disbursements, and a listing of trust assets.
South Carolina allows silent trusts under Section 62-7-105, which makes the duty to inform beneficiaries a default rule rather than a mandatory one. This means the trust creator can modify or eliminate the trustee's obligation to provide notice and accountings. This flexibility is an important distinction from neighboring states like Alabama and Florida, which do not allow silent trusts.
While the trust creator is alive and the trust is revocable, the trustee's duties run primarily to the trust creator.
The statute of limitations for breach of trust claims is three years from when the beneficiary received a report that adequately disclosed the relevant information (Section 62-7-1005).
Trustee duties
South Carolina trustees must administer the trust in good faith, in accordance with its terms and purposes, and in the interests of the beneficiaries. All standard UTC duties apply: loyalty, impartiality, prudent administration, and prudent investing. Trustees must keep trust property separate from personal assets and maintain clear records.
Compensation follows the trust instrument first. If the instrument is silent, the trustee receives reasonable compensation.
What makes South Carolina different
Silent trusts allowed. Under Section 62-7-105, South Carolina treats the duty to inform beneficiaries as a default rule that the trust creator can modify. This means the trust instrument can restrict or eliminate the trustee's obligation to notify beneficiaries about the trust's existence and provide accountings. If you have a South Carolina trust with silent trust language, beneficiaries may not automatically receive information about the trust.
No state estate tax or inheritance tax. South Carolina does not impose a state-level estate tax or inheritance tax. Only the federal estate tax applies to estates exceeding the federal exemption threshold.
North Carolina decanting act. South Carolina adopted the full Uniform Trust Decanting Act, which allows trustees to distribute trust assets into a new trust with different terms. This is a powerful tool for updating outdated trust provisions without going to court, though it requires careful attention to the statutory requirements.
Standard UTC modification tools. South Carolina provides the full suite of UTC trust modification options: nonjudicial settlement agreements, court modification for changed circumstances, and modification by consent of all beneficiaries. These tools give families practical options for updating trusts when life circumstances change.
TrustHelm tip: If your South Carolina trust includes silent trust provisions, it can be difficult to know what information you are entitled to receive. TrustHelm's AI-powered document analysis can help you identify what your trust instrument says about reporting requirements, beneficiary rights, and notification obligations.
The most common South Carolina trust mistakes
Not funding the trust. The most common trust mistake everywhere: assets that have not been properly transferred into the trust will not be controlled by its terms and may end up in probate.
Not understanding whether silent trust provisions apply. South Carolina allows but does not require silent trusts. If your trust was drafted with standard UTC language, the full notice and accounting requirements apply. Only trusts with specific silent trust language can restrict beneficiary information rights.
Missing the 60-day notice deadline. When a trust becomes irrevocable, the trustee must notify qualified beneficiaries within 60 days. Missing this window creates liability and can delay the statute of limitations clock.
Failing to use available modification tools. South Carolina offers several ways to update trust terms without litigation. Families sometimes spend unnecessarily on court proceedings when a nonjudicial settlement agreement or decanting could accomplish the same goal more efficiently.
When to talk to an attorney
You should consult a South Carolina trust attorney if you need to understand whether your trust includes silent trust provisions, if you are considering decanting a trust into a new trust with updated terms, if you are a trustee navigating your notice and accounting obligations, or if you need to modify a trust to address changed family or financial circumstances.
If you need help finding a qualified estate planning attorney in your area, visit TrustHelm's Find an Attorney tool.
This guide is for educational purposes only and does not constitute legal advice. Consult a qualified attorney for decisions about your trust.