The bill H. 3432 proposes significant amendments to the South Carolina Code of Laws, particularly concerning property interests and trusts. 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 under Section 27-6-60 and introduces new provisions regarding discretionary trusts in Section 62-7-504, clarifying that beneficiaries will not be considered settlors merely for holding a testamentary power of appointment.

Furthermore, the bill amends Section 62-7-505 to specify that certain amounts paid to taxing authorities will not be considered as distributions for the settlor's benefit, thereby protecting trust assets from creditor claims. It also introduces Section 62-7-508, which allows trustees to reimburse grantors for tax liabilities attributable to trust income, with specific conditions and limitations. The bill aims to modernize trust and property law in South Carolina, enhancing the flexibility and longevity of property interests while providing clearer guidelines for trust administration. The act will take effect upon approval by the Governor.

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
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