Life & viatical settlements in South Carolina

How life settlements work in South Carolina

Unlike many states, South Carolina has not adopted a dedicated life settlement or viatical settlement statute. Instead, life and viatical settlement transactions are generally governed by existing insurance and contract law, with oversight from the South Carolina Department of Insurance.

The South Carolina Department of Insurance regulates insurance activity within the state and serves as the primary regulatory authority for South Carolina consumers with insurance-related questions.

For cancer patients in South Carolina, the most common path is a viatical settlement under IRS §101(g), where proceeds are generally tax-free at the federal level if the insured is certified as terminally or chronically ill. South Carolina generally follows federal income tax treatment for qualifying viatical settlements.

Medicaid impact in South Carolina

A life or viatical settlement can affect eligibility for Medicaid and other means-tested public assistance programs. South Carolina's Medicaid asset limit for individuals is currently $9,090 (2026), notably higher than the $2,000 limit used in most states. Because Medicaid rules vary by program and individual circumstances, South Carolina residents should review current eligibility requirements through the Healthy Connections (South Carolina Medicaid) before accepting a settlement.

Depending on your situation, planning tools such as special needs trusts or pooled trusts may help preserve eligibility for certain public benefits. These arrangements generally should be established before settlement proceeds are received.

This is often the most important planning consideration for South Carolina cancer patients considering a life or viatical settlement. We can help connect you with a South Carolina elder law attorney if additional guidance is needed.

What’s different about South Carolina

• No dedicated life settlement statute currently governs transactions
• Settlement agreements are generally governed by existing insurance and contract law
• State oversight remains with the South Carolina Department of Insurance
• Medical and policy information remain protected under HIPAA privacy requirements
• Federal tax-free treatment may apply to qualifying viatical settlements under IRS §101(g)
• Medicaid eligibility may be affected by settlement proceeds depending on the recipient's circumstances

Major South Carolina cities we serve

Statewide. Our licensed specialists work with policies throughout South Carolina, including Columbia, Charleston, North Charleston, Mount Pleasant, Rock Hill, and Greenville, and surrounding communities. No in-person meetings are required. Documentation, signatures, and notarization can all be completed remotely.