The bill H. 3432 proposes several amendments to the South Carolina Code of Laws, primarily focusing on the duration and management of nonvested property interests and trusts. Notably, it seeks to extend the time limit for a nonvested property interest or power of appointment to vest from the current ninety years to three hundred sixty years, as outlined in the amendments to Sections 27-6-20 and 27-6-40. Additionally, the bill updates the effective dates for certain property interests created after July 1, 2025, and introduces new provisions regarding discretionary trusts and the treatment of beneficiaries in relation to settlors.

Furthermore, the bill adds Section 62-7-508, which allows trustees to reimburse grantors for tax liabilities attributable to trust income, under specific conditions. This section clarifies the circumstances under which a beneficiary may not be considered a settlor and outlines the limitations on the trustee's authority regarding tax reimbursements. Overall, the bill aims to modernize and clarify the legal framework surrounding trusts and property interests in South Carolina, enhancing flexibility for estate planning and management.

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