Can co-trustees make decisions about trust-owned rental properties if they don’t agree on whether to sell or keep them? – South Carolina

Short Answer

Usually, yes—under South Carolina law, co-trustees who cannot reach a unanimous decision may act by majority decision. But that only solves the problem when there are more than two trustees. If there are only two co-trustees and they are split on whether to sell or keep a trust-owned rental property, the deadlock often requires looking first to the trust document and, if the conflict is impairing administration, asking the probate court for instructions, relief, or possible removal of a trustee.

Understanding the Problem

In South Carolina probate and trust administration, the question is whether co-trustees can decide what to do with trust-owned rental property when they disagree about a sale. The decision point is narrow: when multiple acting trustees share authority over the same trust property, does one side have power to move forward, or does the dispute stop action until the trust terms or the probate court resolves it? The answer depends on the number of trustees serving, the trust’s own decision rules, and whether the disagreement is blocking proper administration.

Apply the Law

South Carolina’s Trust Code gives trustees broad authority to manage trust real estate, including the power to sell property, lease it, improve it, and sign contracts needed to administer the trust. South Carolina law also sets the default rule for co-trustees: if they cannot agree unanimously, they may act by majority decision. That means a trust with three co-trustees can often move forward with a 2-1 vote, but a trust with only two co-trustees may remain stuck if each takes a different position. When deadlock or lack of cooperation substantially impairs trust administration, the probate court can step in with relief, appoint an additional trustee or special fiduciary, or remove a trustee if the legal standard is met.

Key Requirements

Check the trust terms first: The trust document can change the default rule and may require joint action, give one trustee tie-breaking authority, or limit sale powers.
Count the acting trustees: South Carolina’s default rule allows majority action by co-trustees who disagree, which matters only if there are enough trustees for a majority to exist.
Protect administration of the trust: Even when trustees disagree, each trustee still must act with reasonable care, participate in administration, and avoid letting conflict harm the trust or its beneficiaries.

What the Statutes Say

S.C. Code Ann. § 62-7-703 (Cotrustees) – Co-trustees who cannot reach a unanimous decision may act by majority decision, and dissenting trustees have defined duties and protections.
S.C. Code Ann. § 62-7-816 (Specific Powers of Trustee) – Trustees may sell, lease, improve, and otherwise manage trust real property.
S.C. Code Ann. § 62-7-706 (Removal of Trustee) – The court may remove a trustee if lack of cooperation among co-trustees substantially impairs trust administration.
S.C. Code Ann. § 62-7-704 (Vacancy in Trusteeship; Appointment of Successor) – The court may appoint an additional trustee or special fiduciary when needed for administration.

Analysis

Apply the Rule to the Facts: Here, two siblings are serving as co-trustees or co-fiduciaries for multiple trusts, and communication is strained. If there are only two acting co-trustees for a trust that owns rental property, a 1-1 split on whether to sell or keep the property usually creates a deadlock because there is no majority to authorize action under the default statute. In that setting, the first step is to review each trust instrument closely, because one trust may allow independent action or contain a tie-breaking rule while another may require both trustees to act together.

If the trust documents do not break the tie and the disagreement is interfering with management of the rentals, the conflict can become more than a simple business dispute. Rental property often requires ongoing decisions about leases, repairs, insurance, taxes, and whether continued ownership still serves the trust’s purposes. When co-trustee conflict starts blocking those decisions, South Carolina law gives the probate court tools to protect the trust and keep administration moving.

That practical point matters in a multi-trust and estate setting. A disagreement about selling one rental property can spill into accountings, document access, listing decisions, lease renewals, and whether joint legal representation remains workable. Related issues may overlap with broader fiduciary duties discussed in co-trustee and co-executor accountings and document production and with conflicts that can affect estate administration, as discussed in estate administrator conflict issues in South Carolina.

Process & Timing

Who files: a co-trustee, beneficiary, or other proper interested party depending on the relief requested. Where: the South Carolina Probate Court with jurisdiction over the trust or related estate matter. What: a formal proceeding or petition asking the court for instructions, appropriate relief to protect the trust, appointment of an additional trustee or special fiduciary, or removal of a trustee if the statutory standard is met. When: as soon as the deadlock begins to interfere with management of the rental property or other trust administration; there is no single statewide deadline for filing this kind of trust-administration petition, but delay can worsen the problem.
After filing, the court typically requires notice to interested persons and may set a hearing. The court may review the trust terms, the nature of the disagreement, whether the property needs prompt action, and whether less drastic relief than removal would solve the problem.
The final step is a court order that clarifies authority, directs a course of administration, appoints an additional fiduciary, or removes a trustee if the evidence shows that lack of cooperation is substantially impairing administration.

Exceptions & Pitfalls

The trust document may override the default majority rule, so the answer can change if the settlor required joint action or named a trustee with tie-breaking authority.
A trustee who simply refuses to cooperate may create grounds for court intervention, but disagreement alone does not automatically justify removal; the conflict must substantially impair administration or fit another statutory ground.
One co-trustee should not assume unilateral authority to list or sell trust real estate without checking title, trust language, and signing requirements. Contract, notice, and recordation problems can follow if the required trustee approval is missing.

Conclusion

In South Carolina, co-trustees generally may act by majority vote, and trustees usually have authority to sell or keep trust-owned rental property as part of trust administration. But when only two co-trustees are serving and they disagree, neither side usually has a majority, so the matter often stalls unless the trust says otherwise. The key next step is to file a formal proceeding or petition in the Probate Court for instructions or other relief as soon as the deadlock begins impairing administration.

Talk to a Probate Attorney

If a co-trustee dispute is blocking decisions about trust-owned rental property or affecting a related estate administration, our firm can help evaluate the trust terms, explain the available probate court options, and address important timelines before the conflict causes further delay.

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.