(a) Subject to the provisions of Section 62-1-302(d), the probate court has exclusive jurisdiction of proceedings initiated by interested parties concerning the internal affairs of trusts. These proceedings must be formal as defined by Section 62-1-201(17) but consent petitions are not subject to the requirements of formal proceedings. Proceedings that may be maintained pursuant to this section are those concerning the administration and distribution of trusts, the declaration of rights, and the determination of other matters involving trustees and beneficiaries of trusts. These include, but are not limited to, proceedings to:
(1) ascertain beneficiaries, determine a question arising in the administration or distribution of a trust including questions of construction of trust instruments, instruct trustees, and determine the existence or nonexistence of any immunity, power, privilege, duty, or right;
(2) review and settle interim or final accounts;
(3) review the propriety of employment of a person by a trustee including an attorney, auditor, investment advisor or other specialized agent or assistant, and the reasonableness of the compensation of a person so employed, and the reasonableness of the compensation determined by the trustee for his own services. A person who has received excessive compensation from a trust may be ordered to make appropriate refunds. The provisions of this section do not apply to the extent there is a contract providing for the compensation to be paid for the trustee's services or if the trust directs otherwise; and
(4) appoint or remove a trustee.
(b) A proceeding under this section does not result in continuing supervisory proceedings. The management and distribution of a trust estate, submission of accounts and reports to beneficiaries, payment of trustee's fees and other obligations of a trust, acceptance and change of trusteeship, and other aspects of the administration of a trust shall proceed expeditiously consistent with the terms of the trust, free of judicial intervention and without order, approval, or other action of any court, subject to the jurisdiction of the court as invoked by interested parties or as otherwise exercised as provided by law or by the terms of the trust.
(c) The probate court has concurrent jurisdiction with the circuit courts of this State of actions and proceedings concerning the external affairs of trusts. These include, but are not limited to, the following proceedings:
(1) determine the existence or nonexistence of trusts created other than by will;
(2) actions by or against creditors or debtors of trusts; and
(3) other actions and proceedings involving trustees and third parties.
(d) The probate court has concurrent jurisdiction with the circuit courts of this State over attorney's fees. Attorney's fees may be set at a fixed or hourly rate or by contingency fee.
(e) The court will not, over the objection of a party, entertain proceedings under this section involving a trust registered or having its principal place of administration in another state, unless:
(1) when all appropriate parties could not be bound by litigation in the courts of the state where the trust is registered or has its principal place of administration; or
(2) when the interests of justice otherwise would seriously be impaired.
The court may condition a stay or dismissal of a proceeding under this section on the consent of any party to jurisdiction of the state in which the trust is registered or has its principal place of business, or the court may grant a continuance or enter any other appropriate order.
HISTORY: 2005 Act No. 66, Section 1; 2010 Act No. 244, Section 46, eff June 7, 2010; 2013 Act No. 100, Section 2, eff January 1, 2014.
Effect of Amendment
The 2010 amendment in subsection (a) substituted "(d)" for "(c)" following "62-1-302" in the first sentence; and made other nonsubstantive changes.
The 2013 amendment added the second sentence in subsection (a), relating to Section 62-1-201, and made other nonsubstantive changes.
Structure South Carolina Code of Laws
Title 62 - South Carolina Probate Code
Article 7 - South Carolina Trust Code
Section 62-7-101. Short title.
Section 62-7-103. Definitions.
Section 62-7-105. Default and mandatory rules.
Section 62-7-106. Common law of trusts; principles of equity.
Section 62-7-107. Governing law.
Section 62-7-108. Principal place of administration.
Section 62-7-109. Methods and waiver of notice.
Section 62-7-110. Requirement of notice to others.
Section 62-7-111. Nonjudicial settlement agreements.
Section 62-7-112. Rules of construction.
Section 62-7-201. Role of court in administration of trust.
Section 62-7-202. Jurisdiction over trustee and beneficiary.
Section 62-7-301. When parties bound by others.
Section 62-7-302. Representation by holder of general testamentary power of appointment.
Section 62-7-303. Representation by fiduciaries and parents.
Section 62-7-304. Representation by person having substantially identical interest.
Section 62-7-305. Appointment of representative.
Section 62-7-401. Methods of creating trust.
Section 62-7-402. Requirements for creation; merger of title.
Section 62-7-403. Trusts created in other jurisdictions.
Section 62-7-404. Trust purposes.
Section 62-7-405. Charitable purposes; enforcement.
Section 62-7-406. Creation of trust induced by fraud, duress, or undue influence.
Section 62-7-407. Evidence of oral trust.
Section 62-7-408. Trust for care of animal.
Section 62-7-409. Noncharitable trust without ascertainable beneficiary.
Section 62-7-410. Modification or termination of trust; proceedings for approval or disapproval.
Section 62-7-413. Equitable deviation.
Section 62-7-414. Modification or termination of uneconomic trust.
Section 62-7-415. Reformation to correct mistakes.
Section 62-7-416. Modification to achieve settlor's tax objectives.
Section 62-7-417. Combination and division of trusts.
Section 62-7-418. Estate and possession of trust estates shall be in beneficiaries.
Section 62-7-501. Rights of beneficiary's creditor or assignee.
Section 62-7-502. Spendthrift provision.
Section 62-7-503. Exceptions to spendthrift provision.
Section 62-7-504. Discretionary trusts; effect of standard.
Section 62-7-505. Creditors' claims against settlor.
Section 62-7-506. Overdue distribution.
Section 62-7-507. Personal obligations of trustee.
Section 62-7-601. Capacity of settlor of revocable trust.
Section 62-7-602. Revocation or amendment of revocable trust.
Section 62-7-602A. Powers of agent acting pursuant to power of attorney.
Section 62-7-603. Settlor's powers.
Section 62-7-605. Effect of penalty clause for contest.
Section 62-7-606. Anti-lapse provision in trust.
Section 62-7-607. Divorce or annulment as revoking revocable trust.
Section 62-7-701. Accepting or declining trusteeship.
Section 62-7-702. Trustee's bond.
Section 62-7-704. Vacancy in trusteeship; appointment of successor.
Section 62-7-705. Resignation of trustee.
Section 62-7-706. Removal of trustee.
Section 62-7-707. Delivery of property by former trustee.
Section 62-7-708. Compensation of trustee.
Section 62-7-709. Reimbursement of expenses.
Section 62-7-801. Duty to administer trust.
Section 62-7-802. Duty of loyalty.
Section 62-7-803. Impartiality.
Section 62-7-804. Prudent administration.
Section 62-7-805. Costs of administration.
Section 62-7-806. Trustee's skills.
Section 62-7-807. Delegation by trustee.
Section 62-7-808. Powers to direct.
Section 62-7-809. Control and protection of trust property.
Section 62-7-810. Recordkeeping and identification of trust property.
Section 62-7-811. Enforcement and defense of claims.
Section 62-7-812. Exercise of powers by successor trustees; liability.
Section 62-7-813. Duty to inform and report.
Section 62-7-814. Discretionary powers; tax savings.
Section 62-7-815. General powers of trustee.
Section 62-7-816. Specific powers of trustee.
Section 62-7-816A. Authority to appoint the property of original trust to second trust.
Section 62-7-817. Distribution upon termination.
Section 62-7-818. Powers and discretions of a trust protector.
Section 62-7-819. Powers of a trust investment advisor.
Section 62-7-901. Short title.
Section 62-7-902. Definitions.
Section 62-7-903. Allocation of receipts and disbursements.
Section 62-7-904. Adjustments between principal and income.
Section 62-7-904A. Judicial control of discretionary power.
Section 62-7-904B. Definitions for Sections 62-7-904C through 62-7-904P.
Section 62-7-904E. Fair market value of trust assets.
Section 62-7-904F. Administration of a total return unitrust.
Section 62-7-904H. Limitation of liability.
Section 62-7-904I. Applicability of Sections 62-7-904B through 62-7-904P.
Section 62-7-904M. Unitrust amount to be distributed by the express total return unitrust.
Section 62-7-904N. Distribution from an express total return unitrust.
Section 62-7-904P. Trustee considerations for unitrust amount paid.
Section 62-7-906. Determination and distribution of net income.
Section 62-7-907. Beginning and end of income interests.
Section 62-7-908. Allocation of income receipts and disbursements.
Section 62-7-909. Undistributed income.
Section 62-7-910. Allocation of receipts from an entity to principal or income.
Section 62-7-911. Allocations of income and principal received from a trust or an estate.
Section 62-7-912. Separate accounting for a business activity.
Section 62-7-913. Allocations to principal.
Section 62-7-914. Accounting for receipts from rental property.
Section 62-7-916. Allocation of proceeds of insurance contracts; exception.
Section 62-7-917. Insubstantial allocations.
Section 62-7-918. Allocation of payments; interest, dividends, or payments.
Section 62-7-919. Liquidating assets.
Section 62-7-920. Allocation of receipts from interests in minerals or other natural resources.
Section 62-7-921. Allocation of receipts from sale of timber and related products.
Section 62-7-922. Marital deduction adjustments.
Section 62-7-923. Allocation of derivatives; options.
Section 62-7-924. Allocation of payments related to asset-backed securities.
Section 62-7-925. Disbursements from income.
Section 62-7-926. Disbursements from principal.
Section 62-7-927. Transfer to principal of cash receipts from asset subject to depreciation.
Section 62-7-928. Future principal disbursements reserves.
Section 62-7-929. Payment of taxes from income and principal.
Section 62-7-931. Application and construction of Uniform Principal and Income Act.
Section 62-7-933. Uniform Prudent Investor Act.
Section 62-7-1001. Remedies for breach of trust.
Section 62-7-1002. Damages for breach of trust.
Section 62-7-1003. Damages in absence of breach.
Section 62-7-1004. Attorney's fees and costs.
Section 62-7-1005. Limitation of action against trustee.
Section 62-7-1005A. Trust protector.
Section 62-7-1005B. Trust investment advisor.
Section 62-7-1006. Reliance on trust instrument.
Section 62-7-1007. Event affecting administration or distribution.
Section 62-7-1008. Exculpation of trustee.
Section 62-7-1009. Beneficiary's consent, release, or ratification.
Section 62-7-1010. Limitation on personal liability of trustee.
Section 62-7-1011. Interest as general partner.
Section 62-7-1012. Protection of person dealing with trustee.
Section 62-7-1013. Certification of trust.
Section 62-7-1101. Uniformity of application and construction.
Section 62-7-1102. Electronic records and signatures.