The small village of Karsko was established in 1817 together with the local feudal estate, which was founded by the owner of the neighboring estate in Żuków, the Landrat of the Pyrzyce County, August Peter Friedrich Sigismund von Schöning, on peasant lands taken over as a result of the enfranchisement reform. After the death of the founder in 1858, both estates were acquired by his two nephews, Carl and August von Schöning from Żalęcin. From 1865, the goods remained in the sole possession of August von Schöning, and after the extinction of the Żalęcin line of the family, they passed into the possession of the Lubiatowo line.
In 1884 and 1892, Hermann von Schöning from Lubiatowo "a" was mentioned as the owner, so it was his order that the palace, preserved to this day, was erected in 1889. At the beginning. In the 20th century, two side annexes with avant-corps were added on both sides of the vestibule in front of the main entrance. In the 1920s or 1930s, the dining room in the northern corner was enlarged by adding a risalit from the side of the courtyard. In the 1880s and 1890s, impressive farm buildings were erected in front of the palace. Karsko remained in the possession of the von Schönings until the end of the 1920s. In 1939, Gustav Karow is mentioned as the owner. After 1945, the property was taken over by the PGR, and from about 1991 by the Samorządowe Gospodarstwo Rolne Żuków-Karsko with its seat in Karsk. In 1994 it was sold to a private agricultural company. Since then, the palace has been the seat of the farm office, serving also as the residence of the owners. In the years 1999-2000, a thorough renovation of the palace was carried out.