The bill H. 3432 proposes several amendments to the South Carolina Code of Laws, primarily focusing on property interests and trust regulations. Notably, it seeks to extend the time limit for nonvested property interests and powers of appointment to vest from the current ninety years to three hundred sixty years, as outlined in Sections 27-6-20 and 27-6-40. Additionally, it updates the effective dates for certain property interests created after July 1, 2025, and introduces provisions regarding discretionary trusts, specifying circumstances under which a beneficiary may not be considered a settlor.

Furthermore, the bill introduces Section 62-7-508, which allows trustees to reimburse individuals treated as owners of a trust for tax liabilities attributable to the trust's income. This section includes specific conditions under which such reimbursements can occur, including restrictions on using life insurance policy proceeds for these payments. The bill aims to modernize and clarify the legal framework surrounding trusts and property interests in South Carolina, ensuring compliance with contemporary tax laws and enhancing the management of trusts.

Statutes affected:
12/05/2024: 27-6-20, 27-6-40, 27-6-60, 62-7-504, 62-7-505, 62-7-508
02/06/2025: 27-6-20, 27-6-40, 27-6-60, 62-7-504, 62-7-505, 62-7-508
02/12/2025: 27-6-20, 27-6-40, 27-6-60, 62-7-504, 62-7-505, 62-7-508
04/16/2025: 27-6-20, 27-6-40, 27-6-60, 62-7-504, 62-7-505, 62-7-508
Latest Version: 27-6-20, 27-6-40, 27-6-60, 62-7-504, 62-7-505, 62-7-508
12/06/2024: 27-6-20, 27-6-40, 27-6-60, 62-7-504, 62-7-505, 62-7-508