South Carolina Conservator Bond and Annual Accounting Requirements

The Financial Oversight That Comes With Conservatorship

When South Carolina's probate court appoints you as conservator for an incapacitated parent, you gain legal authority over their financial estate — but that authority comes with substantial oversight requirements. Unlike a power of attorney, where the agent operates privately with no court supervision, a conservator answers to the probate judge on an ongoing basis.

The two core requirements — the surety bond and the annual accounting — represent the financial guardrails the state places around someone managing another person's money under court authority. Understanding these requirements before filing a conservatorship petition helps families make an informed decision about whether guardianship/conservatorship is truly necessary or whether a power of attorney (executed while capacity still exists) would achieve the same goals without the ongoing burden.

The Surety Bond: 1.5 Times Liquid Assets

If the ward's liquid assets exceed $15,000, South Carolina requires the conservator to post a fiduciary surety bond. The bond amount is set at 1.5 times the total liquid assets in the ward's estate.

Example: If your parent has $120,000 in bank accounts, CDs, and investment accounts, the required bond is $180,000. A surety company issues the bond after evaluating the conservator's credit and financial stability, and charges an annual premium — typically 1% to 3% of the bond face value. On a $180,000 bond, that's $1,800 to $5,400 per year, paid from the ward's estate.

The bond protects the ward's estate against mismanagement or theft by the conservator. If the conservator mishandles funds, the surety company covers the loss up to the bond amount, then pursues the conservator for reimbursement.

The Restricted Account Alternative

South Carolina offers an alternative to the surety bond: the Restricted Account Agreement (Form 551PC). Under this arrangement, the conservator works with a bank to freeze the ward's liquid assets in a restricted account. No withdrawals can be made without court authorization — typically a court order specifying the amount and purpose.

Advantages: No annual bond premium. The ward's assets stay in an FDIC-insured account.

Disadvantages: Every expenditure above routine bills requires a separate court order, which adds delay and filing fees. For families managing a parent's active financial life — paying for ongoing care, managing property taxes, handling insurance — the restricted account can create bottlenecks.

Richland County's probate court actively encourages restricted accounts over surety bonds, and some counties have streamlined the withdrawal-approval process for routine care expenses. Check your county's local practices before choosing between the two options.

The Initial Inventory (Form 550GC)

Within 30 days of appointment, the conservator must file an Inventory and Appraisement (Form 550GC) with the probate court. This document lists every asset in the ward's estate with verified fair market values:

• Bank accounts (checking, savings, CDs) — balances as of the appointment date
• Investment and brokerage accounts — holdings and values
• Real property — appraised value or recent tax assessment
• Vehicles — Kelley Blue Book or NADA value
• Personal property of significant value (jewelry, art, collectibles)
• Retirement accounts (IRAs, 401(k)s, pensions) — current value
• Life insurance policies — cash surrender value
• Debts owed to the ward

The inventory establishes the baseline. Every future accounting is measured against this initial snapshot to ensure the estate isn't being depleted inappropriately.

Annual Conservator Report (Form 567GC)

Every year after appointment, the conservator files Form 567GC with a $10 filing fee. This is the most time-intensive ongoing requirement. The report must show:

All income received during the reporting period — Social Security, pension payments, investment dividends, rental income, interest, insurance proceeds.

All expenditures during the period — with receipt-level documentation. The court expects bank statements, canceled checks, and receipts for every significant expenditure. Categories include: care facility payments, medical expenses, insurance premiums, property maintenance, taxes, legal fees, and personal needs allowance for the ward.

Current asset values — updated balances for all accounts, current property values, and any assets acquired or disposed of during the period.

A reconciliation showing that the opening balance plus income minus expenses equals the closing balance. Discrepancies trigger court inquiries.

The court reviews the report and may question specific expenditures or request additional documentation. Persistent filing failures can result in the conservator's removal and potential liability for the ward's losses.

Power of Attorney vs. Conservatorship: The Oversight Difference

This is why elder law practitioners universally recommend a durable power of attorney over conservatorship whenever possible. The comparison:

A properly drafted power of attorney can cover many financial tasks, if those powers are authorized. An agent may be able to pay bills, manage investments, sell property, and handle other transactions without the bond, annual report, and ongoing court oversight that come with conservatorship — but the POA does not automatically grant every authority a conservator has.

The catch is timing. A power of attorney must be executed while the parent still has contractual capacity. Once capacity is lost, the conservatorship route — with all its costs and oversight — becomes the only option.

The South Carolina Power of Attorney & Guardianship Kit covers both paths. For families where capacity still exists, it provides the POA execution process that avoids conservatorship entirely. For families where capacity is already gone, it includes the guardianship petition checklist and explains the post-appointment requirements — so you know what you're signing up for before the judge hands you the letters of conservatorship.

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