How can we claim funds from a bank account that was only in the decedent’s name using a year’s allowance? – South Carolina

Short Answer

In South Carolina, the surviving spouse may use the year’s allowance, which the Probate Code calls exempt property, to receive funds from a bank account owned solely by the decedent when qualifying personal property does not satisfy the allowance. The personal representative generally must collect the account as a probate asset before distributing the allowed amount. The claim must be filed with the Probate Court and delivered or mailed to the personal representative within the later of eight months after death or six months after probate of the will.

Understanding the Problem

Can a surviving spouse in South Carolina claim money from an account held only in the deceased spouse’s name when the estate lacks enough household goods, vehicles, or other qualifying property to satisfy the year’s allowance? The key issues are who may claim the allowance, whether the account is a probate asset, and whether the claim is filed before the statutory deadline.

Apply the Law

South Carolina calls the year’s allowance the right to “exempt property.” The current statute provides up to $45,000 in value to the surviving spouse of a decedent who was domiciled in South Carolina. If there is no surviving spouse, the decedent’s minor or dependent children share the right. A bank account held only in the decedent’s name is generally a probate asset unless it has a valid payable-on-death beneficiary or another nonprobate transfer feature.

Key Requirements

Eligible claimant: The claimant must be the surviving spouse or, if there is no surviving spouse, a minor or dependent child. The claimant must survive the decedent by at least 120 hours.
Available estate assets: Household furniture, vehicles, furnishings, appliances, and personal effects come first. If their net value falls below the statutory allowance, other probate assets—including funds from a sole-name bank account—may make up the deficiency.
Timely filing and notice: The claimant must file the claim in the Probate Court handling the estate and mail or deliver it to the personal representative, if one has been appointed, within the later of eight months after death or six months after probate of the will.

What the Statutes Say

S.C. Code § 62-2-401 (Exempt Property) – Establishes the current allowance of up to $45,000 and permits other estate assets to make up a shortage in qualifying personal property.
S.C. Code § 62-2-402 (Selection, Documentation, and Deadline) – Explains who may select the property, how the distribution may be documented, and when the claim must be filed.
S.C. Code § 62-3-709 (Possession of Estate Property) – Gives the personal representative authority to take possession or control of probate property, including a sole-name account.
S.C. Code § 62-3-807 (Payment of Claims) – Requires the personal representative to make provision for exempt property before closing the estate.

Analysis

Apply the Rule to the Facts: The deceased step-parent’s account appears to be a probate asset because it was held only in that person’s name, assuming it had no payable-on-death beneficiary. The surviving parent, rather than an adult stepchild, may claim the allowance because a surviving spouse exists. If qualifying personal property does not provide the full allowance, the account funds may cover the deficiency, subject to available estate assets, timely filing, any valid waiver, and higher-priority administration and funeral expenses.

The surviving parent’s ownership of the home does not by itself transfer the deceased step-parent’s separate bank account. It also does not eliminate the need to administer the account through the estate. More information about the distinction between account distributions under a will and exempt-property rights appears in this discussion of South Carolina bank accounts and the year’s allowance.

Process & Timing

Who files: The surviving spouse. Where: The Probate Court for the South Carolina county where the decedent was domiciled. What: A written claim identifying the exempt-property allowance and requested account funds, filed with the court and mailed or delivered to the personal representative. When: No later than the later of eight months after death or six months after probate of the will.
Collect the account: The appointed personal representative presents proof of appointment and the bank’s required documents, closes or transfers the sole-name account, and records the funds on the estate inventory. The inventory generally must be filed within 90 days after appointment.
Document the distribution: The surviving spouse may select available account funds after valuing qualifying property, and the personal representative distributes them toward the allowance. The personal representative may document ownership through a written instrument of distribution. If the amount, selection, or payment is disputed, an interested person may request relief from the Probate Court.

Exceptions & Pitfalls

The allowance is not always additional inheritance: Unless the will provides otherwise, exempt property generally counts against what the spouse receives under the will, through intestacy, or as an elective share.
The bank does not usually pay the claimant directly: A death certificate and allowance claim alone may not authorize release. The bank ordinarily pays the duly appointed personal representative, who then makes the estate distribution.
Beneficiary designations change the analysis: An account with a valid payable-on-death beneficiary generally passes outside probate and may not be available to satisfy the allowance.
Specific gifts receive protection when other assets are sufficient: The personal representative should not use specifically devised property when other estate assets can satisfy the allowance.
Some expenses have higher priority: Administration costs, attorney’s fees, and reasonable funeral expenses take priority over the exempt-property allowance.
A written waiver may bar the claim: A valid marital agreement, waiver, or property settlement may waive exempt-property rights.
The applicable amount may depend on timing: The statutory amount increased to $45,000 effective May 8, 2025. Estates arising before that change may require review of the law applicable at the relevant time.

Conclusion

A surviving spouse may use South Carolina’s year’s allowance to receive funds from a sole-name bank account when qualifying personal property does not satisfy the applicable allowance, currently up to $45,000. The personal representative generally collects the bank funds before making the distribution, and administration and reasonable funeral expenses retain priority. File a written exempt-property claim with the Probate Court for the county of domicile, and deliver it to the personal representative, by the later of eight months after death or six months after probate of the will.

Talk to a Probate Attorney

If a surviving spouse needs to claim funds from a decedent’s sole-name bank account, our firm has experienced attorneys who can help identify the proper claimant, calculate the available allowance, and address filing and distribution requirements.

Disclaimer: This article provides general information about South Carolina law based on the single question stated above. It is not legal advice for your specific situation and does not create an attorney-client relationship. Laws, procedures, and local practice can change and may vary by county. If you have a deadline, act promptly and speak with a licensed South Carolina attorney.