South Carolina

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South Carolina Asset Protection Overview

South Carolina debtors may choose from either the state or federal bankruptcy exemptions.

The Palmetto State is one of the most progressive and aggressive state that is developing captive insurance and related businesses(see South Carolina Captive Insurance, below). Otherwise, South Carolina offers nominal homestead exemption, spotty protection for life insurance, and seemingly complete protection for annuity proceeds.

South Carolina Statutory Creditor Exemptions

For additional detailed information on the use of life insurance, annuities, pension plans, and employee benefit plans for wealth preservation and asset protection, see advanced life insurance

South Carolina Homestead

• The homestead exemption limit is $5,000. Couples may double the amount. [15-41-30(1)]

Statute

South Carolina Life Insurance

• The benefits accruing under a life insurance policy after the death of the insured, are exempt. [38-63-50]

Statute

• Life insurance proceeds up to $4,000, are exempt, if the insured was someine debtor depended on for support. [15-41-30(8)]

Statute

• The proceeds of a life insurance policy, which is payable to the beneficiary is exempt if the policy was purchased within two years of filing for bankruptcy. [38-63-40(A)]

Statute

• The owner's interest in accrued dividend or interest under or loan value of unmatured policy under which insured is debtor or individual of whom debtor is dependent is exempt up to $4,000. [15-41-30(8)]

Statute

• Group life insurance proceeds are exempt. [38-63-40( C)]

Statute

• An unmatured life insurance policy is exempt. [15-41-30(7)]

Statute

South Carolina Annuities

• The proceeds of an insurance annuity are exempt. [38-63-40(B)]

Statute

South Carolina IRAs & Pension Plans

• ERISA-qualified benefits are exempt. [15-41-30(10) (E)]

Statute

• IRAs are exempt. [15-41-30]

Statute

Special Coverage!

South Carolina Captive Insurance & Alternative Risk Markets

For additional detailed information on captive insurance and alternative risk markets, see http://captiveinsurancecompanies.com

• South Carolina’s Captive Insurance Companies Act – cutting-edge legislation that has made South Carolina one of the leaders in domestic captives.

• South Carolina’s Protected Cell Insurance Companies legislation -- provides a basis for the creation of protected cells by a domestic insurer or captive insurer as one means of accessing alternative sources of capital and achieving the benefits of insurance securitization.

• South Carolina’s Special Purpose Reinsurance Vehicle Model Act -- provides for the creation of Special Purpose Reinsurance Vehicles (SPRVs) exclusively to facilitate the securitization of one or more ceding insurers' risk as a means of accessing alternative sources of capital and achieving the benefits of securitization.

• South Carolina’s Reciprocal Insurance legislation -- Individuals, partnerships, and corporations of this State, designated as "subscribers", may exchange reciprocal or interinsurance contracts with each other or with individuals, partnerships, and corporations of other states and countries, providing indemnity among themselves from any loss which may be insured against under other provisions of law, excepting life insurance
  

South Carolina Fraudulent Transfers

For additional detailed information relating to fraudulent transfers, including the text of the Uniform Fraudulent Transfers Act, see fraudulent transfers

South Carolina Act

• South Carolina Fraudulent Transfers Act

South Carolina Fraudulent Transfer Cases

Federal District Court

• In re Southern Textile Knitters,
  No. 01-2369 (4th Cir. (4th Cir. 01/16/2003)

State Appellate Court

• David Carr v. Marion T. Guerard, et al.
  No. 26011 (S.C. 06/02/2005)

• Kiriakides v. Atlas Food Systems & Services, Inc.,
  541 S.E.2d 257 (S.C. 01/29/2001)

• Pauw v. Agee,
  No. 2:98-2318-23 (D.S.C. 01/31/2000)

• Kirkiakides v. Atlas Food Systems & Services, Inc.,
  527 S.E.2d 371 (S.C.App. 01/31/2000)

South Carolina Trusts

For additional detailed information relating to the use of trusts for asset protection, including foreign and domestic asset protection trusts, see trusts.

South Carolina Trust Act (Non Self-Settled) [62-7]

• South Carolina Trust Act

South Carolina Business Entities

South Carolina Acts

• South Carolina Corporation Act
• South Carolina Limited Partnership Act
• South Carolina Limited Liability Company Act

South Carolina Charging Order Cases

• No cases yet

South Carolina Alter Ego & Corporate Veil Cases

• Edens v. Bellini,
  No. 3815 (S.C.App. 06/01/2004)

• Hunting v. Elders,
  No. 3778 (S.C.App. 04/19/2004)

• Williams v. Williams,
  517 S.E.2d 689 (S.C. 06/28/1999)

Useful South Carolina Links

For additional detailed information relating to financial frauds and tax scams, see http://www.quatloos.com

• South Carolina Secretary of State
• South Carolina Attorney General
• South Carolina Bar Association

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