New South Carolina law offers property tax relief for families dealing with heirs’ property

by Aaron Dixon

BEAUFORT COUNTY, S.C. (WTOC) - Families in South Carolina working through heirs’ property issues—land passed down through generations without a clear will or title—could soon get relief from sudden property tax increases that can occur while they are trying to settle ownership.

A new measure, the Heirs’ Property Tax Relief Act, passed this spring and is expected to help families avoid unexpected tax spikes tied to property reassessments during the legal process of subdividing or splitting heirs’ property.

What is heirs’ property?

Heirs’ property is commonly created when land is inherited by multiple family members over time without a formal estate plan, deed updates, or a clear title. That can leave families unsure of their legal ownership until a crisis happens, such as a death in the family, storm damage to a long-standing home, or a need to repair, sell, or access assistance.

Luana Graves Sellars, founder of the Lowcountry Gullah Foundation, said many families don’t learn they are living on heirs’ property until they are forced to take action.

“What’s unfortunate about heirs property is that most people don’t know that they’re living on heirs property and that they have heirs property until there is a crisis,” Sellars said.

When disputes or questions arise, families may face multiple court appearances, conflict among relatives, and high costs, often while trying to make decisions about whether to keep, sell, or divide the property.

How the tax relief law helps

Under the new law, families will still pay the regular property tax percentage, but the legislation is designed to prevent sudden increases that can happen when property is reassessed as part of the heirs’ property subdivision process.

Sellars said the change is especially important because families already navigating the court system often have limited resources.

“Enabling people to have whatever tools in this growing toolbox that we are working on, so that they can make it more user-friendly, financially attainable—that’s a part of the goal of what we are trying to do,” she said.

Sellars pointed to a recent example of how reassessment can affect families. In a non-heirs-property case involving a 96-year-old woman who had just lost her husband, she said the family’s annual taxes increased dramatically.

“Their annual taxes were $440 a year. When he passed away, their taxes, because of reassessment, went to $2200,” Sellars said.

Supporters of the legislation say avoiding those types of jumps could save families thousands of dollars—money that can instead go toward attorney fees and other expenses required to resolve heirs’ property issues.

“I’m really excited to know in the long-term the savings impact this will have for people because it will be significant,” Sellars said.