Does a trustee have to provide me a copy of the trust and an accounting of trust assets and expenses? – South Carolina

Short Answer

Often, yes. Under South Carolina law, once a trust is irrevocable, a trustee generally must notify certain beneficiaries of the trust, tell them they can request a copy of the trust instrument, and provide ongoing reports about trust property, receipts, disbursements, liabilities, and trustee compensation. While the trust is still revocable, however, those duties are usually owed only to the settlor unless the trust says otherwise.

Understanding the Problem

In South Carolina estate planning matters, the main question is whether a trustee who takes over after a death or other change in control must give a beneficiary or interested family member a copy of the trust and information about trust assets and expenses. The answer turns on the person’s status under the trust, whether the trust is still revocable or has become irrevocable, and whether a written request for information has been made.

Apply the Law

South Carolina trust law requires a trustee to administer the trust in good faith and, once reporting duties apply, to keep the proper beneficiaries reasonably informed about the trust’s administration. A revocable living trust usually remains private during the settlor’s lifetime because the trustee’s reporting duties are generally owed only to the settlor. When the trust becomes irrevocable, including at the settlor’s death if the trust terms so provide, the trustee must give required notice within ninety days and must provide annual written reports to the beneficiaries entitled to receive them.

Key Requirements

• Trust status: Reporting duties usually expand only after the trust becomes irrevocable. If the living grandparent is still alive and the trust remains revocable, the trustee’s duty to disclose is generally owed to that grandparent, not other relatives.
• Beneficiary status: South Carolina distinguishes among qualified beneficiaries, distributees, permissible distributees, and other beneficiaries. The right to notice, a full report, or a copy of the trust instrument depends on where the person fits in that structure.
• Written request: The trustee must tell qualified beneficiaries they may request a copy of the trust instrument and trustee reports in writing. Other beneficiaries may also request information reasonably related to the administration of the trust, and the trustee must respond to reasonable requests under the circumstances.

What the Statutes Say

• S.C. Code Ann. § 62-7-813 (Duty to inform and report) – requires notice to certain beneficiaries within 90 days after a trustee accepts an irrevocable trust or a revocable trust becomes irrevocable, and requires annual reports with trust property, liabilities, receipts, disbursements, and trustee compensation.
• S.C. Code Ann. § 62-7-801 (Duty to administer trust) – requires the trustee to administer the trust in good faith, according to the trust terms and purposes and the interests of the beneficiaries.

Analysis

Apply the Rule to the Facts: Here, a parent has died, and a different relative is now acting as fiduciary or trustee for a living grandparent’s trust. If the grandparent is still alive and the trust is a revocable living trust, South Carolina law usually treats the grandparent as the only person entitled to the trustee’s reporting duties unless the trust says otherwise. If the parent’s death changed the trust’s status so that some share became irrevocable, or if the person asking is a current or permissible beneficiary of an irrevocable trust, the trustee may have to provide notice, a copy of the trust on written request, and annual reporting about assets and expenses.

A second point matters in practice: South Carolina does not require trustees of ordinary inter vivos or testamentary trusts to file routine accountings with the probate court. Instead, the trustee’s reporting duty usually runs directly to the beneficiaries who qualify for notice or reports. The annual report can be informal in format and may include bank or brokerage statements, a fiduciary income tax return, or a list of assets and values if feasible, along with liabilities, receipts, disbursements, and the source and amount of trustee compensation.

For a closer look at beneficiary reporting rights, see what rights South Carolina trust beneficiaries have to a full accounting of trust assets and values. If the trustee is not sharing information, a related discussion appears here: what can be done if a trustee refuses to share trust statements or an accounting.

Process & Timing

1. Who files: Usually the beneficiary or interested person makes the first move by sending the trustee a written request. Where: Directly to the acting trustee, and if court action becomes necessary, in the South Carolina Probate Court or other court with proper jurisdiction over the trust matter in the county connected to the trust administration. What: A written request for a copy of the trust instrument, or for the portions relevant to that beneficiary’s interest, and for the trustee’s report showing assets, liabilities, receipts, disbursements, and compensation. When: For qualified beneficiaries of an irrevocable trust, the trustee’s initial notice is due within 90 days after accepting the trusteeship or after a revocable trust becomes irrevocable.
2. After a proper request, the trustee should respond within a reasonable time. During administration of an irrevocable trust, annual reports should continue to go to distributees and permissible distributees, and to other qualified beneficiaries who requested information in writing.
3. If the trustee does not comply, the next step is usually a petition asking the court to compel disclosure, require an accounting, or address a possible breach of fiduciary duty. The expected result is an order requiring production of trust information or other relief allowed by South Carolina law.

Exceptions & Pitfalls

• The trust terms can modify some reporting duties. South Carolina law says these duties apply unless the trust expressly provides otherwise, so the actual language of the trust matters.
• Not every relative is entitled to the same information. A person who is not a qualified beneficiary, distributee, or permissible distributee may receive information reasonably related to that person’s interest upon reasonable request, but the statute does not expressly grant a right to a redacted copy of the trust instrument.
• A common mistake is assuming a power of attorney creates a right to trust records after the principal’s death. A power of attorney usually ends at death, and the right to trust information after that point depends on beneficiary status, trustee duties, and whether the trust is revocable or irrevocable.

Conclusion

In South Carolina, a trustee usually must provide trust information and periodic accounting details only after the trust is irrevocable and only to the beneficiaries entitled to receive them under the statute and the trust terms. The key threshold is whether the trust is still revocable and whether the person requesting information qualifies for notice or reports. The next step is to send the acting trustee a written request for the trust instrument and trustee report, noting the trustee’s 90-day notice duty if the trust is irrevocable.

Talk to a Estate Planning Attorney

If a family member has taken over as trustee after a death and there are questions about access to the trust document or trust accounting records, our firm has experienced attorneys who can help explain beneficiary rights, trustee duties, and the timelines that may apply under South Carolina law.

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.