Big Changes for Small Estates: South Carolina’s New Law Raises Probate Threshold to $45,000

The period following the loss of a loved one is invariably challenging, marked by grief and the sudden need to manage practical responsibilities. Navigating the legal requirements of settling their final affairs can add a significant layer of stress to an already difficult time.

In South Carolina, this court-supervised process, known as probate or estate administration, is necessary to validate a Will, pay outstanding debts, and legally transfer assets to the intended inheritors. For many families dealing with smaller, less complex estates, the formal probate process has often felt disproportionately burdensome.

Recognizing this, the South Carolina legislature has taken a meaningful step to ease this burden. A new law, signed by the Governor on May 8, 2025, makes significant changes to how small estates are handled, offering a more streamlined and less costly path forward.

What Are the “Small Estate” Procedures in South Carolina?

The probate court system provides specific, simplified procedures for estates that fall below a certain monetary value. The logic is straightforward: an estate with only a modest bank account and a vehicle, for example, shouldn’t have to endure the same complex and lengthy administrative process as a multi-million-dollar estate with diverse assets and business interests.

These streamlined options, often referred to as “small estate procedures,” are designed to save families time, reduce court fees and legal expenses, and allow for a quicker distribution of assets to heirs. Previously, the threshold for these procedures in South Carolina was set at $25,000, a figure that hadn’t kept pace with inflation and the rising value of common assets.

Understanding the New Law: What Exactly Has Changed?

Effective May 8, 2025, Act No. 26 (H.3472) significantly updates the South Carolina Code. The most impactful change is the increase of the small estate threshold from $25,000 to $45,000. This adjustment broadens the eligibility for simplified probate, meaning more families can avoid the complexities of formal estate administration.

The new $45,000 limit applies to several key areas of the probate code:

• Collection of Personal Property by Affidavit: A process that allows for the collection of a decedent’s property without a formal probate court opening.
• Summary Administrative Procedures: A shortened probate process for a court-appointed Personal Representative.
• Exempt Property Allowance: The amount of property a surviving spouse or minor children can claim from an estate with priority over most creditors.

How Does the “Collection by Affidavit” Work Under the New Law?

For the smallest and most straightforward estates, the law allows for the collection of assets using a simple affidavit, completely bypassing a formal court-supervised administration. This is the quickest and least expensive option available.

Under the new law, this process is available if:

• The value of the decedent’s entire probate estate, less any liens and encumbrances, does not exceed $45,000.
• At least 30 days have passed since the date of death.
• No application or petition for the appointment of a Personal Representative (sometimes called an Executor) is pending or has been granted.
• The person claiming the property is the rightful successor (e.g., the heir named in a Will or determined by South Carolina intestate laws) and is entitled to the payment or property.

To use this method, the successor files an “Affidavit for Collection of Personal Property” (Form 420PC) with the Probate Court. Once the judge approves and countersigns the affidavit, it can be presented to banks, financial institutions, or the DMV to take possession of the decedent’s assets. This change means that an heir can now collect on an estate of up to $45,000 in assets directly, whereas under the old law, this would have required a more formal court proceeding.

What is the Summary Administration for Small Estates?

In situations where a Personal Representative must be appointed—perhaps to handle a more complex issue or because the estate, while still small, exceeds the affidavit limit—the law provides for a “summary administration.” This is a simplified version of formal probate.

The new law allows for this summary process if the value of the entire probate estate (less liens and encumbrances) does not exceed $45,000, plus the value of certain allowances like exempt property, funeral expenses, and final medical bills. The law allows the Personal Representative, once appointed, to immediately pay debts, distribute assets to the rightful heirs, and file a closing statement with the court without the extended waiting periods and procedural steps that are involved with a full probate administration.

Why is the Increased Exempt Property Allowance So Important?

Perhaps one of the most significant changes in Act No. 26 is the increase in the “exempt property” allowance. This provision is designed to provide a measure of financial security for a decedent’s immediate family.

The law now allows a surviving spouse (or if there is no spouse, the decedent’s minor children) to claim up to $45,000 in value from the estate. This can include household furniture, automobiles, appliances, and personal effects. If the value of these items is less than $45,000, the spouse or children are entitled to other estate assets to make up the difference.

This allowance is critical because it has priority over almost all creditor claims. It ensures that the surviving family has access to essential property and funds without them being seized to pay off unsecured debts like credit card bills or medical expenses. By raising this amount to $45,000, the legislature has provided a much stronger safety net for grieving families, protecting more of the estate’s assets for their direct benefit.

Navigating the Probate Process with Confidence

While Act No. 26 makes the probate process more accessible for many, determining the correct value of the probate estate, identifying non-probate assets, and ensuring all legal requirements are met can still present some challenges. The distinctions between the “Collection by Affidavit” and “Summary Administration” procedures are important, and choosing the right path depends entirely on the specific circumstances of the estate.

At The De Bruin Law Firm, our experienced attorneys are dedicated to helping Personal Representatives and families understand their options and responsibilities. We provide clear, compassionate guidance tailored to your unique situation, ensuring that the estate is settled efficiently and correctly. If you are managing the affairs of a loved one and have questions about South Carolina’s new small estate laws, we are here to help you move forward with clarity and confidence.

Call us at (864) 982-5930 or contact us through our online form to set up a personalized consultation with a member of our legal team.