South Carolina Beneficiary Accounts

Someone emptied a joint account into his own name a week before the other owner died, then tried to claim the money by survivorship. It didn't work — because it was never his money to move.

Contribution decides ownership during life

Under S.C. Code § 62-6-103(a), a joint account belongs, during the lifetime of all parties, to the parties in proportion to the net contributions each made to the sums on deposit — unless there's clear and convincing evidence of a different intent. Two names on an account doesn't automatically mean an even, 50-50 split; South Carolina looks at who actually put the money in.

Survivorship still applies at death, by default

Despite this contribution-based lifetime rule, § 62-6-104(a) provides that sums remaining on deposit at the death of a party belong to the surviving party or parties, as against the estate of the decedent — unless a writing was filed with the financial institution, at the time the account was created or afterward, indicating a different intention. So the default at death favors the survivor, even though the default during life is contribution-based.

The case of the emptied account

A real South Carolina Supreme Court case shows exactly how these two rules interact. A man named as a joint owner on an account hadn't contributed any money to it — his wife, the decedent, was the sole contributor. Seven days before she died, he transferred all the funds out of the joint account into a separate account titled solely in his own name. After her death, he claimed the money based on the joint account's right of survivorship.

Why the maneuver failed

The court ruled against him on two independent grounds. First, under § 62-6-103(a), because he hadn't contributed to the account, the funds belonged to his wife during her lifetime — meaning he had no legal right to move them into his own name in the first place. Second, the statutory term "sums on deposit" specifically means the balance actually payable on the account, and doesn't extend to funds that have already been withdrawn. Because he'd emptied the joint account before she died, there were no sums on deposit in it at the moment of her death for the survivorship provision to even apply to. The court held § 62-6-103(a) doesn't stop applying just because the contributor later dies — it had already determined who owned those funds seven days earlier, when he withdrew them.

Why this matters beyond the specific case

This case is a clean illustration of how South Carolina's two-part structure — contribution during life, survivorship at death — actually protects against a specific kind of last-minute maneuver: a non-contributing joint owner emptying a shared account right before the other party dies, hoping the "joint account" label alone will justify the transfer. Because South Carolina ties lifetime ownership to actual contribution rather than just the names on the account, that kind of pre-death withdrawal doesn't automatically convert borrowed access into real ownership.

P.O.D. designations, life insurance, and retirement accounts

A payable-on-death (P.O.D.) beneficiary designation works differently from joint ownership between co-owners, since the named P.O.D. beneficiary simply receives whatever remains once the owner dies, without the same contribution analysis. Life insurance and retirement accounts like a 401(k) or IRA follow the same basic rule — the named beneficiary receives the asset directly, outside probate, as long as they're alive when the owner dies, and it only becomes part of the probate estate if no beneficiary was ever named or every named beneficiary predeceased the owner with no contingent beneficiary in place.

South Carolina beneficiary accounts — frequently asked questions

How is ownership of a South Carolina joint bank account determined while both owners are alive?

A joint account belongs, during the lifetime of all parties, to the parties in proportion to the net contributions each made to the sums on deposit, unless there is clear and convincing evidence of a different intent.

What happens to a South Carolina joint account balance when a party dies?

Sums remaining on deposit at the death of a party belong to the surviving party or parties as against the estate of the decedent, unless a writing was filed with the financial institution at the time the account was created, or afterward, indicating a different intention.

What happened in the South Carolina case about an account emptied before death?

A non-contributing joint owner transferred all the funds out of a joint account into his own solely titled account seven days before the other party died, then claimed the funds by right of survivorship. The court held he was not entitled to them, because the funds had belonged to the actual contributor during her life, and there were no sums remaining on deposit in the joint account at her death for the survivorship provision to apply to.

Does the term "sums on deposit" in South Carolina law include money that was already withdrawn?

No. The term specifically means the balance payable on a multiple-party account and does not extend to funds that have already been withdrawn or to their proceeds.

Do life insurance and retirement accounts skip probate in South Carolina the same way?

Yes. Both pass directly to a living named beneficiary, outside probate, and only become part of the probate estate if no beneficiary was named, every named beneficiary predeceased the owner with no contingent beneficiary in place, or the policy or plan names the owner's own estate.

This page provides general guidance only and is not legal advice. Rules are based on South Carolina statute (S.C. Code § 62-6-103, § 62-6-104) and a published South Carolina Supreme Court decision, verified per our methodology. Confirm a specific account's ownership status with the bank, or with a licensed South Carolina attorney, before acting.