How will the bank accounts and CDs be distributed under the will versus the year’s allowance? – South Carolina

Short Answer

In South Carolina, bank accounts and CDs pass under the will only if they are part of the probate estate (for example, accounts titled solely in the decedent’s name with no payable-on-death or survivorship feature). A year’s allowance (often discussed alongside other family protections like exempt property) is a probate-court benefit for a surviving spouse (and sometimes minor/dependent children) that is paid from probate assets and can take priority over many creditor claims. If most accounts are joint-with-survivorship or payable-on-death (POD), they usually transfer outside probate and are not controlled by the will or used to fund a year’s allowance unless a court later orders otherwise.

Understanding the Problem

In South Carolina probate, the key question is whether the decedent’s bank accounts and certificates of deposit (CDs) are probate assets controlled by the will, or nonprobate assets that transfer by the account contract (such as joint-with-right-of-survivorship or POD designations). A separate question is how a surviving spouse’s year’s allowance claim fits into the probate process when a will exists but has not been filed, and when the petition for allowance lists only a vehicle. The practical decision point is whether the accounts and CDs are “in the estate” (and therefore potentially available to satisfy the allowance and then distribute under the will) or “outside the estate” (and therefore usually paid directly to a survivor or named beneficiary).

Apply the Law

South Carolina generally treats many bank and CD transfers at death as contract-based transfers. If an account is joint with right of survivorship, the surviving owner typically becomes the owner at death. If an account is POD, the named beneficiary typically becomes the owner at death. Those transfers are usually not controlled by the will because they are not part of the probate estate. By contrast, a single-owner account with no POD designation (and no survivorship feature) is typically a probate asset and is distributed under the will after the probate court appoints a personal representative and the estate pays priority items.

Key Requirements

Account title and beneficiary terms control first: Joint-with-survivorship and POD accounts usually transfer at death by the account terms, not by the will.
Probate assets fund probate benefits: A year’s allowance claim is handled in probate court and is generally paid from probate estate assets (not from assets that already transferred outside probate).
The will must be delivered and the estate opened to administer probate assets: If a will exists, it must be delivered to the probate court so the court can appoint a personal representative and supervise distribution of probate property.

What the Statutes Say

S.C. Code Ann. § 62-2-901 (Delivery of will to probate court) – Requires a person with custody of a will to deliver it to the probate court within 30 days after learning of the death; intentional failure can create liability and contempt exposure.
S.C. Code Ann. § 62-6-202 (Right of survivorship; POD accounts) – Explains how sums in multiple-party and POD accounts belong to surviving parties/beneficiaries at death, and when funds instead become part of the estate.
S.C. Code Ann. § 62-6-203 (Rights of parties and beneficiaries; changing survivorship terms) – Provides that rights at death are determined by the account terms, and describes how survivorship terms may be altered (including by clear and convincing evidence in appropriate cases).
S.C. Code Ann. § 62-6-204 (Transfers not testamentary) – States that these account transfers are effective by the account terms and are generally not treated as testamentary transfers.
S.C. Code Ann. § 62-2-401 (Exempt property) – Provides a surviving spouse’s right to certain exempt property up to a statutory value, with priority rules and how it is charged against other benefits.

Analysis

Apply the Rule to the Facts: The decedent died with a known will that has not been filed, and the surviving spouse filed for a year’s allowance listing only a vehicle. Whether the bank accounts and CDs are distributed under the will depends on how each account is titled and whether it has survivorship or POD terms; if so, those funds commonly transfer outside probate and do not wait for the will. If some accounts are solely in the decedent’s name with no POD beneficiary, those accounts are probate assets and would be administered through the probate court, where family protections (including allowance-type claims and exempt property) are addressed before final distribution under the will.

Process & Timing

Who files: Any interested person may start the probate process; the person holding the will must deliver it. Where: The South Carolina Probate Court in the county where the decedent was domiciled. What: Deliver the original will to the probate court and open an estate so a personal representative can be appointed. When: The will must be delivered within 30 days after actual notice or knowledge of the death under S.C. Code Ann. § 62-2-901.
Identify which accounts are probate vs. nonprobate: The personal representative (once appointed) typically gathers information, requests date-of-death balances, and confirms whether each account is (a) single-owner/no POD (probate), (b) joint with survivorship, or (c) POD. The account contract and titling usually control under § 62-6-202 and related sections.
Pay priority items and then distribute: Probate assets are used to satisfy court-approved family protections and other priority expenses/claims, then the remaining probate assets are distributed under the will (or by intestacy if no will is admitted). Nonprobate accounts generally pay directly to the survivor/beneficiary and are not “distributed under the will.”

Exceptions & Pitfalls

Assuming “the will controls everything”: Many bank accounts and CDs transfer by survivorship or POD terms and never become probate assets. That can leave fewer probate assets available to satisfy allowance-type claims or to carry out will distributions.
Incomplete allowance filings: Listing only a vehicle may not reflect the full picture of probate assets. If additional probate assets exist, the probate court may need a complete inventory and clearer accounting before deciding what is available for family protections and distribution.
Will not filed: If the will is not delivered, the estate administration can stall, and interested family members may need to ask the probate court to compel delivery. Intentional concealment can create damages and contempt exposure under § 62-2-901.
Undue influence concerns: If a family member is pressuring the surviving spouse or controlling information, the probate court process (formal filings, inventories, and notice to interested persons) often becomes the place where those concerns are raised and tested with evidence.
Confusion between “year’s allowance” and other spouse protections: South Carolina provides multiple spouse protections in probate (including exempt property under § 62-2-401). Which benefit applies, how it is calculated, and whether it is “in addition to” or “charged against” other inheritances can change the final numbers.

Related reading that may help clarify how account titling can override a will: how POD/TOD designations interact with a South Carolina will and how joint bank accounts typically pass at death.

Conclusion

In South Carolina, bank accounts and CDs are distributed under the will only if they are probate assets (commonly, accounts titled solely in the decedent’s name with no survivorship or POD beneficiary). A year’s allowance claim is handled in probate court and is typically paid from probate assets before final will distributions. If the accounts are joint-with-survivorship or POD, they usually transfer outside probate and are not controlled by the will. Next step: deliver the original will to the county Probate Court within 30 days of learning of the death and open the estate so the court can address the allowance and identify probate assets.

Talk to a Probate Attorney

If a will has not been filed and there are questions about bank accounts, CDs, and a year’s allowance petition, a probate attorney can help identify which assets are probate versus nonprobate, confirm what the probate court can award, and take steps to require proper filings and disclosures.

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.