Joint tenants in common

A new bill to help owners of heirs’ property in South Carolina resolve title issues was signed into law by Gov. McMaster on May 15, 2026. H. 4477 passed unanimously in both the S.C. Senate and the House within the last month and was ratified on May 14.

The widespread support for this bill reflects the growing recognition that heirs’ property – property jointly owned by multiple descendants of the original property owner – is a longstanding problem in South Carolina. The lack of a clear title for heirs’ property frequently leads to both legal complications and family conflict.

Below, we’ll look at what the bill says and does, why heirs’ property is a problem, and whether this legislation can fix it.

What the “Heirs’ Property Tax Relief Act” Does

The “Heirs’ Property Tax Relief Act,” as it’s known, is intended to streamline the process and reduce the financial burden on owners seeking to clear a property’s title.

Beginning with the 2026 tax year, transfers of qualified property to qualified family members will not be considered an “assessable transfer of interest,” and no formal appraisal will be required. Previously, such a transfer would trigger a property appraisal, which could increase the owners’ tax burden.

The Act amends South Carolina Code Section 12-37-3150 and includes the following definitions in subsection (B)(16):

(b)(i) “Heirs’ property” means real property owned by one or more individuals as tenants in common, which was inherited from a relative and for which no formal probate or recorded conveyance transferred clear title to the current owners.

(b)(ii) “Qualified family member” means a person related to the prior owner by blood, marriage, or adoption including, but not limited to, a spouse, child, grandchild, sibling, niece, nephew, aunt, uncle, cousin, or those identified as heir owners by a court of competent jurisdiction.

and the following requirements:

(d) The transfer described in this item is not considered an assessable transfer of interest only if the qualified family members submit affidavits to the county assessor certifying under penalty of perjury that:

• The property qualifies as heirs’ property
• The transfer is between qualified family members, and
• The transfer is for the purpose of clearing title

Once the title is cleared, the property is no longer considered heirs’ property.

Why Heirs’ Property Is a Problem – Consequences of a Cloud on Title

Heirs’ property is created when a property owner dies and the ownership changes but those changes are not properly recorded with the county. It’s often the result of a property owner dying intestate – without a will – but it can also happen if an existing will is not probated. In either case, inheritance is then determined by state law.

Under state intestacy laws, the decedent’s children collectively inherit either 50% of the property (with the other 50% going to the surviving spouse) or 100% of the property (if there’s no surviving spouse). They now own the property in equal, fractional amount as tenants in common. If the situation isn’t addressed, the property can end up with multiple owners with varying ownership interests from different generations.

When changes in ownership are not properly recorded with the county, the result is a “cloud on title,” the legal term for a title with encumbrances or claims. Property without a clear title is:

• Difficult or impossible to sell
• Unable to get or refinance a mortgage or other home-backed loans
• Ineligible for government assistance like FEMA aid
• Expensive and time-consuming to fix later on

Those are just some of the legal and financial issues. Heirs’ property often causes family conflict, as well, if there’s no consensus on whether to keep or sell the property, who should live there, who should pay property taxes and upkeep, and so on. As a joint tenant, one owner may sell or transfer his or her fractional interest without the approval of the other tenants, and/or may file for partition, which can lead to a court-ordered sale of the home.

The situation leaves the owners of heirs’ property uniquely vulnerable to financial liabilities, forced tax sales, court-ordered partition, exploitation from speculators, and other risks. The only remedy is to clear the title.

Will This Act Help?

We hope so. In our experience, many heirs’ property owners don’t clear the title because they don’t realize there’s a problem in the first place, and this act doesn’t address that underlying issue. But this act does address an administrative barrier that could hinder heirs’ property owners who have already decided to clear the title, which could help many South Carolina families.

What To Do Now – Clear the Title and Plan Ahead

Heirs’ property is one of the most common results of what we call Family Malpractice™. With some planning ahead and basic understanding of the probate process, you can avoid burdening your descendants with heirs’ property in the future.

Whether you’re dealing with heirs’ property yourself or you want to avoid creating the problem for your descendants, call Gem at the Gem McDowell Law Group with offices in Myrtle Beach and Mt. Pleasant, SC. Gem and his team handle probate matters and help individuals and families develop personalized wills and estate plans tailored to their unique circumstances. Gem’s also a problem solver who understands how family disputes can complicate inheritance and estate planning, and his goal is to help resolve the legal issues while maintaining good family relationships.

Call today to schedule your free, no-obligation consultation at (843) 284-1021.  We look forward to hearing from you.