What Happens When an Estate Is Insolvent in South Carolina?
Enter the estate's assets and the claims in each class of South Carolina's payment order to see which claims are paid in full, which are paid in part, and which go unpaid, along with when the executor is personally liable.
Frequently Asked Questions
An estate is insolvent when the claims against it exceed the assets available to pay them. South Carolina then pays the claims in 5 classes, in the order its statute sets, and the classes at the end of the order are the ones left unpaid when the money runs outS.C. Code § 62-3-805Verified Sep 23, 2026View source.
1. Administration costs, attorney fees, and reasonable funeral expensesS.C. Code § 62-3-805(a)(1)Verified Sep 23, 2026View source. 2. Debts and taxes with preference under federal lawS.C. Code § 62-3-805(a)(2)Verified Sep 23, 2026View source. 3. Reasonable and necessary medical, hospital, and personal care expenses of the last illnessS.C. Code § 62-3-805(a)(3)Verified Sep 23, 2026View source. 4. Debts and taxes with preference under other South Carolina laws, in the order of their priority (including Medicaid recovery under § 43-7-460)S.C. Code § 62-3-805(a)(4)Verified Sep 23, 2026View source. 5. All other claimsS.C. Code § 62-3-805(a)(5)Verified Sep 23, 2026View source.
South Carolina's statute sets the rule class by class rather than one rule for every classS.C. Code § 62-3-805(b)Verified Sep 23, 2026View source.
A personal representative is not personally liable for the decedent's debtsS.C. Code Ann. § 62-3-808(a)-(d); § 62-3-104Verified Sep 23, 2026View source. A personal representative who pays a later class before an earlier class is paid in full is personally liableS.C. Code Ann. § 62-3-807(c)(2)Verified Sep 23, 2026View source. A personal representative who distributes property to heirs while claims are unpaid is personally liableS.C. Code Ann. § 62-3-807(c)(1); §§ 62-3-909, 62-3-1004, 62-3-703(b)Verified Sep 23, 2026View source.
A person named in the will files a written renunciation with the court (S.C. Code Ann. § 62-3-203(d)(1)). The writing is signed and acknowledged before a notary.
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