In South Carolina a guardian of a minor’s person, the adult with custody who makes daily decisions, is appointed by the Family Court, and a parent’s will can nominate who that should be. A conservator to hold and manage a child’s money is appointed by the probate court, which has exclusive jurisdiction over conservatorships (S.C. Code Title 62, Article 5). When a child receives a settlement, S.C. Code § 62-5-433 sets the rules: $2,500 or less can be handled by a parent without court approval; $25,000 or less can be approved by the probate court or the circuit court; more than $25,000 must be approved by the circuit court and paid through a conservator or a protective order. Money held by a conservator is released when the child turns eighteen.
Two courts, two questions
| Guardian of the person | Conservator (the money) | |
|---|---|---|
| Decides | Where the child lives, school, medical care, daily life | Inheritances, insurance proceeds, settlement money, property |
| Appointed by | The Family Court of the county where the child lives | The probate court of the county where the child lives |
| Nominated by | A parent’s will or written designation; the court still decides best interest | A parent’s will may name one; the court appoints |
| Ends | At eighteen, marriage, adoption, or when a parent resumes custody | At eighteen, when the funds are delivered to the former minor |
Guardianship of the person: the Family Court
When both parents have died, when a parent is deployed, incarcerated, in treatment or otherwise unable to care for a child, or when a child has been living with a grandparent and a school or physician wants legal authority, the Family Court can appoint a guardian or award custody to the relative. A parent can nominate a guardian in a will, and courts give that nomination great weight, but the decision is always the child’s best interest. The person named has to accept and be approved, which is why a well-drafted will names an alternate. In Dorchester, Berkeley and Charleston counties these petitions are filed with the Family Court clerk in St. George, Moncks Corner and Charleston.
Conservatorship: the probate court
A child cannot legally receive more than modest sums directly. When a minor inherits outright, is the beneficiary of a life insurance policy, or receives settlement money, the probate court appoints a conservator, usually a parent, to hold it. The conservator posts a bond or places the funds in a restricted account, files an inventory, asks the court’s permission before spending principal, files an annual accounting, and turns the money over when the child turns eighteen. It is protective, and it is also rigid: the court decides whether the money can pay for braces or a car, and an eighteen-year-old receives the balance whether or not they are ready for it.
Settlements for children: the thresholds
| Net amount to the child | Who approves | Where the money goes |
|---|---|---|
| $2,500 or less | No court approval; the parent or guardian signs the release | To the parent or guardian for the child |
| More than $2,500, up to $25,000 | The probate court or the circuit court, on a verified petition by the guardian or guardian ad litem (an existing conservator may settle without approval) | As § 62-5-103 allows: modest amounts to the parent or custodian, larger sums to a conservator or a court-approved arrangement |
| More than $25,000 | The circuit court only, on a verified petition stating that the settlement is in the child’s best interest | Through a conservator appointed by the probate court, or under a probate court protective order |
In practice: a car-crash settlement of $40,000 for a child in Summerville means a petition in the Dorchester County circuit court, a conservatorship opened in the Dorchester County Probate Court, a bond or a restricted account, an inventory and an annual accounting until the child turns eighteen. A $15,000 settlement can be approved in the probate court, often with the funds placed in a restricted account the child receives at eighteen. Structured settlements that pay out over time, and settlements placed in a trust the court approves, can soften both the rigidity and the eighteenth-birthday problem.
Avoiding a conservatorship with a plan
- Name a guardian and a trustee in your will. A testamentary trust holds the children’s inheritance under a trustee you choose, with distributions at the ages you choose, instead of a court-supervised account released at eighteen.
- Make life insurance and retirement accounts payable to the trust, not to a minor child directly. A child named as beneficiary means a conservatorship.
- Custodial (UTMA) accounts for modest gifts; South Carolina releases them at eighteen or twenty-one depending on how the account was created.
- A special needs trust for a child with a disability, so an inheritance or settlement does not cost the child SSI or Medicaid.
- Choose the guardian and the money manager separately. The best person to raise your children is not always the best person to manage money, and the two roles can check each other.
Grandparents and relatives raising a child
Many Lowcountry grandparents raise grandchildren with no paperwork at all until a school, a doctor or an insurer asks for authority. Options range from a limited written delegation of parental powers signed by the parent, to a Family Court custody or guardianship order, to adoption. Which one fits depends on whether the parent agrees, how long the arrangement will last and whether benefits are involved. We will tell you the least drastic option that actually works.
Frost first: if a child in your family is about to receive money from an estate, an insurance policy or a settlement, call before anything is paid. The order of operations decides whether the child gets a conservatorship, a trust or nothing more than a bank account.
A child in your family needs a decision-maker, or is receiving money?
Call. We will tell you which court is involved, what the thresholds mean for your situation, and whether a trust can keep it simple.
Questions people ask
Which court handles guardianship of a minor in South Carolina?
The Family Court appoints a guardian of a child’s person. The probate court appoints a conservator for a child’s money and approves settlements of $25,000 or less; settlements over $25,000 are approved by the circuit court.
Can a parent name a guardian in a will?
Yes. A will can nominate a guardian for minor children, and the court gives the nomination great weight, but it still decides based on the child’s best interest. Name an alternate, and consider a trust so the guardian is not also managing a court-supervised account.
At what amount does a child’s settlement need court approval?
Anything over $2,500. Up to $25,000 the probate court or the circuit court can approve it; over $25,000 only the circuit court can, and the money must go through a conservator or a protective order.
When does a child get the money?
A conservator delivers the funds when the child turns eighteen. A trust in a parent’s will can set a later age or stage the distributions, which is the main reason to plan rather than let the court hold the money.
Does a grandparent raising a grandchild need a guardianship?
Often not for day-to-day life, but schools, doctors and insurers increasingly require legal authority. A Family Court guardianship or custody order, or a limited written delegation from the parent, solves that.
Related pages
Guardianship & conservatorship
Court-appointed decision-makers for adults who cannot manage and for minors—contested or not.
Learn moreLast will and testament
Who inherits, who is in charge, and who raises the kids—decided by you, not the statute.
Learn moreSpecial needs planning
Special needs trusts and ABLE accounts that protect benefits and provide extras.
Learn more