What assets or legal claims need to be listed in an estate inventory? – South Carolina

Short Answer

A South Carolina personal representative generally must list all probate property the decedent owned at death, including surviving legal claims that belong to the estate. Each item requires reasonable detail, its fair market value as of the date of death, and any related debt or other encumbrance. A wrongful-death claim requires separate treatment because the personal representative brings it for statutory beneficiaries rather than as an ordinary estate asset.

Understanding the Problem

The narrow issue is whether a South Carolina personal representative must include a water-contamination claim, along with other probate assets, in the inventory requested by the Probate Court. The answer depends on whether the decedent owned the claim at death, whether it survived the death, and whether it belongs to the estate or to wrongful-death beneficiaries. The inventory deadline generally runs from the personal representative’s appointment.

Apply the Law

South Carolina requires the personal representative to inventory probate property owned by the decedent at death. Probate property commonly includes solely owned real estate, bank and investment accounts without surviving beneficiaries, vehicles, household property, business interests, money owed to the decedent, and enforceable legal claims. A pending or potential claim may qualify even if liability remains disputed or its value cannot yet be determined with certainty.

Key Requirements

Probate ownership: The item must generally have belonged to the decedent at death and must not have passed automatically through survivorship, a beneficiary designation, or a trust.
Reasonable description: The inventory should identify each asset clearly enough for the Probate Court and interested persons to understand what the estate owns. A legal claim can be described by its general nature, status, and the forum where it is pending without including privileged communications.
Date-of-death value: The personal representative must report fair market value as of the date of death. For a disputed or contingent legal claim, valuation may require information from the lawyer who handled it and instructions from the Probate Court.
Encumbrances: The inventory must identify the type and amount of any mortgage, lien, or other encumbrance associated with an asset.
Timely filing: Unless an exception or extension applies, the personal representative must file the inventory with the Probate Court within 90 days after appointment.

What the Statutes Say

S.C. Code § 62-3-706 (Inventory and Appraisement) – Requires an inventory of probate property within 90 days after appointment, with reasonable detail, date-of-death value, and encumbrances.
S.C. Code § 62-3-708 (Supplementary Inventory) – Requires a corrected or supplemental inventory when omitted property or a material error later becomes known.
S.C. Code § 15-5-90 (Survival of Claims) – Provides that claims involving injury to a person, personal property, or real estate generally survive to the decedent’s personal representative.
S.C. Code § 62-3-109 (Limitation Period for a Decedent’s Claim) – Suspends the limitations period on an unbarred claim belonging to the decedent during the eight months after death, after which the clock resumes unless another rule tolls it.
S.C. Code § 15-51-20 (Wrongful-Death Claims) – Requires the personal representative to bring the claim for the designated statutory beneficiaries.
S.C. Code § 15-51-42 (Settlement Approval) – Governs court approval of wrongful-death and survival settlements and requires notice to the Probate Court within ten days when such an action is filed elsewhere.

Analysis

Apply the Rule to the Facts: The water-contamination matter may be a probate asset if it concerns injuries or losses suffered by the decedent and remained unresolved at death. The personal representative should determine whether the former lawyer had filed a lawsuit, submitted an administrative claim, negotiated a settlement, or merely investigated a possible claim. If the claim belonged to the decedent and survived, it should generally appear on the inventory even if it remains contingent, disputed, or difficult to value. If it is solely a wrongful-death claim, the claim and proceeds require separate treatment because recovery benefits the statutory beneficiaries.

Other probate assets should also be listed. Common examples include solely owned real estate; cash and deposit accounts; securities; vehicles; household goods and personal effects; ownership interests in closely held entities; refunds or payments owed to the decedent; promissory notes; and claims arising from contracts, property damage, personal injury, or unpaid compensation.

Assets that ordinarily pass outside probate do not belong on the standard probate-property inventory. These may include jointly owned property with a valid right of survivorship, payable-on-death or transfer-on-death accounts, property held in a funded trust, and assets controlled by a valid beneficiary designation. However, an interested person may demand a separate list of known nonprobate property, and the personal representative generally has 90 days after that demand to provide it.

Process & Timing

Who files: The court-appointed personal representative. Where: The South Carolina Probate Court administering the estate, usually in the county where the decedent was domiciled. What: The applicable Inventory and Appraisement form, commonly Form 350ES or the probate-assets-only Form 350ES SF. When: Within 90 days after appointment, unless the Probate Court grants an extension.
Investigate the claim: Obtain the prior lawyer’s file, representation agreement, filed pleadings, correspondence, settlement documents, and current status. Determine whether the matter is a survival claim owned by the estate, a wrongful-death claim for statutory beneficiaries, or a combination of both.
Describe and value: List an estate-owned claim with reasonable detail and a supportable date-of-death value. If no dependable value can be calculated, ask the Probate Court how it wants the uncertainty reported rather than omitting the claim.
Correct later if necessary: File a supplemental or amended inventory if the claim is discovered after the original filing, its description was materially incomplete, or the original value was erroneous or misleading. More guidance appears in this overview of preparing a South Carolina probate inventory.

Exceptions & Pitfalls

Survival and wrongful death are different: A survival claim seeks recovery for losses suffered by the decedent and generally benefits the estate. A wrongful-death claim benefits the statutory beneficiaries even though the personal representative brings it. A combined settlement may require allocation between the two claims and court approval.
An estate claim is not a creditor claim: A legal claim the decedent owned is an asset. A demand that someone else has against the decedent or estate is a liability handled through the creditor-claim process, not an estate asset.
Do not omit uncertain claims: Lack of a settlement offer or fixed value does not necessarily mean that a claim has no existence. The inventory can identify its contingent or disputed status while the personal representative develops valuation information.
Do not disclose privileged material: The inventory should describe the asset without attaching confidential legal advice or unnecessary medical information.
Watch the underlying claim deadline: Filing an estate inventory does not preserve a lawsuit. Although South Carolina suspends certain limitation periods for eight months after death, the personal representative should promptly determine every deadline that applies to the contamination claim.
Confirm authority to act: The inventory duty generally belongs to the appointed personal representative. A person who received a court letter but was not appointed should clarify the requested role with the Probate Court.

Conclusion

A South Carolina estate inventory must include probate property owned by the decedent at death, including a surviving water-contamination claim that belongs to the estate, even if the claim remains disputed or difficult to value. It ordinarily excludes assets passing automatically outside probate and treats wrongful-death claims separately. The personal representative should file the applicable Inventory and Appraisement with the Probate Court within 90 days after appointment, identifying the claim, its status, its supportable date-of-death value, and any encumbrance.

Talk to a Probate Attorney

If an estate inventory involves a pending contamination claim, uncertain valuation, or a possible distinction between survival and wrongful-death proceeds, our firm has experienced attorneys who can help explain the filing requirements, available options, and important timelines.

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.