S.C. Code Ann. § 62-7-404 – Allocation of receipts and expenditures of trust between income and principal

(a) A trust shall be administered with due regard to the respective interests of income beneficiaries and remaindermen. A trust is so administered with respect to the allocation of receipts and expenditures if a receipt is credited or an expenditure is charged to income or principal or partly to each:
1. (1) in accordance with the terms of the trust instrument, notwithstanding contrary provisions of this part [Sections 62-7-401 et seq.];
2. (2) in the absence of any contrary terms of the trust instrument, in accordance with the provisions of this part [Sections 62-7-401 et seq.]; or
3. (3) if neither of the preceding rules of administration is applicable, in accordance with what is reasonable and equitable in view of the interests of those entitled to income as well as of those entitled to principal, and in view of the manner in which men of ordinary prudence, discretion, and judgment would act in the management of their own affairs.
(b) If the trust instrument gives the trustee discretion in crediting a receipt or charging an expenditure to income or principal or partly to each, no inference of imprudence or partiality arises from the fact that the trustee has made an allocation contrary to the provisions of this part [Sections 62-7-401 et seq.].