Bill
H 4264
SC H4264 creates an enhanced life estate deed (Lady Bird) allowing property owners to pass title to beneficiaries at death while retaining full control, avoiding probate.
Status snapshot
- Introduced: 03/27/2025; referred to Judiciary.
- Floor actions: read second and third; on 2025-08-21 the bill was amended by substitution with H4445.
- Final status: pending gubernatorial approval (effective on approval) for instruments filed on or after that date. (Check the substituted H4445 for changes before enactment.)
Purpose
- Establishes and codifies an “enhanced life estate deed” (commonly called a Lady Bird deed) in South Carolina law, permitting a property owner (grantor) to transfer real property to designated remainder beneficiaries at the grantor’s death while retaining full control during life. The statute is intended to allow seamless transfer at death, avoid probate, and clarify tax, Medicaid, and title-insurance treatment.
Key provisions
- New statutory part added to Article 6, Title 62 (Sections 62-6-500 through 62-6-600).
- Definitions: establishes terms — “enhanced life estate deed,” “grantor,” “remainder beneficiary,” and “trustee.” The bill characterizes the instrument as a revocable trust instrument created under this part.
- Required contents and recordation: the deed must (at minimum) state it operates under this part, designate a trustee, name remainder beneficiary(ies), reserve full control to the grantor, and state revocability. The deed must be executed and recorded in the county register of deeds or clerk of court where the property is located.
- Grantor’s lifetime rights: grantor retains full use and enjoyment, may sell, mortgage, lease, encumber, revoke, amend, withdraw property from the deed, or terminate the deed without remainder beneficiary consent.
- Trustee/successor trustee: the grantor may serve as trustee during life. A named successor trustee (upon death/incapacity) must distribute or manage property per the deed.
- Probate and creditor treatment: property passes directly to remainder beneficiaries at death without probate. Property is not subject to the grantor’s creditors unless the deed was created with intent to defraud creditors.
- Tax, homestead, and Medicaid treatment:
- Grantor retains eligibility for homestead property tax exemptions while residing in the property.
- Property remains part of the grantor’s estate for federal/state tax purposes unless law provides otherwise.
- The bill states the property is not treated as a gift for Medicaid eligibility and is not subject to Medicaid estate recovery if the deed complies with applicable federal and state Medicaid requirements.
- Title insurance: insurers may issue policies on such property without joinder/consent of remainder beneficiaries if the deed complies with the statute.
- Amendment/revocation: grantor may revoke or amend in writing during life; amendments/revocations must be filed with the register of deeds or clerk.
- Conflict and severability: the part supplements the probate code and controls in conflicts; contains a severability clause.
Who is affected
- Primary: property owners (commonly older homeowners) seeking to avoid probate while retaining control; remainder beneficiaries who will receive title at grantor’s death.
- Secondary: estate planners, probate courts, creditors, Medicaid agencies, title insurers, and tax authorities.
Potential impacts and considerations
- Simplifies transfer of real property at death and can reduce probate costs and delays.
- Preserves grantor control and homestead tax benefits during life.
- The bill’s Medicaid and creditor protections may hinge on federal rules and case law; practitioners should verify compliance with federal Medicaid regulations and existing South Carolina rules. Title insurers and lenders may need operational changes to recognize these instruments.
- Because H4264 was amended by substitution (H4445) on 2025-08-21, the final statutory language and effective details may differ — check the enacted text before relying on specifics.
Quick takeaway
H 4264 creates a statutory framework for “Lady Bird” enhanced life estate deeds in South Carolina, designed to let owners retain full control of property during life while ensuring a non‑probate transfer at death, with explicit provisions addressing recording, creditor exposure, taxation, Medicaid, and title insurance.
Compiled from official sources — confirm details with the bill’s official record.
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