S.C. Code Ann. § 62-7-407 – Time when income beneficiary becomes entitled to income; allocation of income receipts; termination of income interest

(a) An income beneficiary is entitled to income from the date specified in the trust instrument, or, if none is specified, from the date an asset becomes subject to the trust. In the case of an asset becoming subject to a trust by reason of a will, it becomes subject to the trust as of the date of the death of the testator even though there is an intervening period of administration of the testator's estate.
(b) In the administration of a decedent's estate or a testamentary trust or in the case of an asset received under a will by a trustee:
1. (1) receipts due but not paid at the date of death of the testator are principal;
2. (2) receipts in the form of periodic payments (other than corporate distributions to stockholders), such as rent, interest, or annuities, not due at the date of the death of the testator shall be treated as accruing from day to day. That portion of such a receipt accruing before the date of death is principal and the balance is income.
(c) In all other cases, any receipt from an income producing asset is income even though the receipt was earned or accrued in whole or in part before the date when the asset became subject to the trust.
(d) On termination of an income interest, the income beneficiary whose interest is terminated, or his estate, is entitled to:
1. (1) income undistributed on the date of termination;
2. (2) income due but not paid to the trustee on the date of termination; or
3. (3) income in the form of periodic payments (other than corporate distributions to stockholders), such as rent, interest, or annuities, not due on the date of termination, accrued from day to day.
(e) Corporate distributions to stockholders shall be treated as due on the day fixed by the corporation for determination of stockholders of record entitled to distribution or, if no date is fixed, on the date of declaration of the distribution by the corporation.