South Carolina H 5637: Perpetual Care Cemetery Care and Maintenance Trust Funds

Bill Text

2025-2026 Bill 5637 Text of Previous Version (Apr. 30, 2026) - South Carolina Legislature Online 

South Carolina General Assembly
126th Session, 2025-2026

Bill 5637

Indicates Matter Stricken
Indicates New Matter

(Text matches printed bills. Document has been reformatted to meet World Wide Web specifications.)

A bill

TO AMEND THE SOUTH CAROLINA CODE OF LAWS BY AMENDING 
SECTION 40-8-110, RELATING TO CARE AND MAINTENANCE TRUST FUNDS FOR PERPETUAL 
CARE CEMETERIES, SO AS TO AUTHORIZE A TOTAL RETURN UNITRUST METHOD OF 
DISTRIBUTION AND TO ESTABLISH GRADUATED MINIMUM DISTRIBUTION PERCENTAGES BASED 
ON THE FAIR MARKET VALUE OF THE TRUST FUND.

Be it enacted by the 
General Assembly of the State of South Carolina:

SECTION 1. Section 40-8-110 of the S.C. Code is amended by adding:

 (M)(1) Notwithstanding another provision 
of law, a care and maintenance trust fund established pursuant to this section 
may be administered using a total return unitrust method as provided in this 
subsection.

 (2) 
For purposes of this subsection, "unitrust method" means a method of 
determining the annual amount that may be distributed from the trust fund for 
care and maintenance based upon a fixed percentage of the net fair market value 
of the trust fund, determined annually, without regard to whether the 
distribution is derived from income or principal.

 (3) 
A trustee that elects to administer a care and maintenance trust fund using the 
unitrust method shall distribute annually for care and maintenance an amount no 
less than:

 (a) 
three percent of the net fair market value of the trust fund if the trust fund 
value is at least one million dollars but less than two million dollars;

 (b) 
four percent of the net fair market value of the trust fund if the trust fund 
value is at least two million dollars but less than five million dollars; and

 (c) 
five percent of the net fair market value of the trust fund if the trust fund 
value is five million dollars or greater.

 (4) 
The net fair market value of the trust fund must be determined in good faith by 
the trustee based on the average fair market value of the trust fund assets for 
the preceding three calendar years. If the trust fund has been in existence for 
fewer than three years, the average must be based on the period of its 
existence.

 (5) 
A distribution made in accordance with this subsection is deemed to satisfy the 
requirement that net income of the care and maintenance trust fund be used for 
care and maintenance purposes as required by this section.

 (6) 
A trustee electing to use the unitrust method shall adopt a written policy 
governing valuation and distributions and shall maintain records sufficient to 
demonstrate compliance with this section.

 (7) 
The trustee shall report annually to the department the fair market value of 
the trust fund and the amount distributed pursuant to this subsection in the 
form required by the department.

 (8) 
Nothing in this subsection relieves a trustee of its fiduciary duties under 
applicable law, including the duty to act as a prudent investor pursuant to 
Title 62.

SECTION 2. This act takes effect upon approval 
by the Governor.

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This web page was last updated on April 30, 2026 at 01:03 PM