What Type of Trust Do Most Georgia Real Estate Investors Use?
The answer for most investors is a revocable living trust. It keeps your rental properties out of Georgia probate, names the person who takes over if you become incapacitated, and tells your successor trustee exactly how to handle each property when you die.
Most investors in Georgia pair a revocable trust with one or more LLCs. The LLC holds the property and handles liability. The trust owns the LLC. This combination covers liability, probate, and incapacity in one structure.
The revocable living trust is the starting point. From there, the right choice depends on your estate size, how many properties you own, and whether creditor protection or estate tax reduction is a priority.
For a full breakdown of all five holding structures (including joint tenancy, beneficiary deeds, and LLC alone), see Best Way to Hold Rental Properties in Georgia for Estate Planning.
Revocable Living Trust — What It Does for Georgia Landlords
A revocable living trust is created during your lifetime. You transfer your assets into it. You remain the trustee and control everything exactly as you did before. Nothing changes while you are alive and healthy.
When you die, the trust does not go through probate. Your successor trustee steps in immediately and handles your properties according to your instructions. No court. No delays. No public record.
When you become incapacitated, your successor trustee also steps in. This is the piece most investors overlook. Without a trust, a court must appoint a guardian to manage your properties. That process can take months and thousands of dollars in legal fees before anyone can legally touch your rental income or pay your mortgages.
One limitation: a revocable trust does not protect your assets from creditors while you are alive. Under O.C.G.A. § 53-12-82, the assets of a revocable trust remain reachable by your creditors during your lifetime. This is why the LLC is the liability layer, not the trust.
Irrevocable Trust — When Georgia Investors Need One
An irrevocable trust removes assets from your control. Once you transfer property into it, you cannot take it back. The trade-off is protection from creditors, from estate taxes, or from Medicaid spend-down requirements.
Georgia does not have a state estate tax. The federal estate tax applies only to estates above $13.99 million in 2025. Most Georgia real estate investors do not need an irrevocable trust for estate tax reasons.
Situations where irrevocable trusts make sense:
- Medicaid planning: If you or a spouse may need nursing home care, an irrevocable trust can protect property from Medicaid spend-down, but the 5-year look-back period applies. Assets transferred within 5 years of a Medicaid application may be counted against eligibility.
- Estate tax planning: If your total estate exceeds the federal exemption, specific irrevocable structures (GRATs, SLATs, IDGTs) can reduce the taxable estate significantly.
- Creditor protection: If you face significant lawsuit exposure beyond what LLC protection covers, an irrevocable trust can provide an additional layer, but it requires giving up control permanently.
For a detailed comparison of what each trust type actually does (including the asset protection limits of a revocable trust under Georgia law and the stepped-up basis trade-off in an irrevocable trust), see Revocable Trust vs. Irrevocable Trust for Georgia Rental Properties.
Land Trust — Limited Use in Georgia
A land trust holds real estate in the trust’s name instead of the owner’s name, providing privacy. Investors sometimes use them to prevent tenants or competitors from identifying their portfolio in public records.
In Georgia, land trusts are not widely used by estate planning attorneys. Georgia does not have a specific land trust statute, which creates uncertainty about how these structures are treated in court. Most Georgia attorneys recommend an LLC for privacy and liability, paired with a revocable trust for estate planning.
If privacy is your primary concern, an LLC with a generic name achieves similar results without the legal ambiguity of a Georgia land trust. See One LLC vs. Separate LLC Per Rental Property in Georgia for how LLC structure affects liability separation and privacy.
How to Choose the Right Trust for Your Rental Portfolio
1
Start with a revocable living trust
If you own rental property in Georgia and do not have a trust, a revocable living trust paired with an LLC is the right starting point. It covers probate, incapacity, and inheritance, the three problems that disrupt most rental portfolios after a death.
2
Add an irrevocable trust if your estate exceeds $13.99 million
If your total estate (all properties, retirement accounts, and business interests combined) exceeds the federal exemption, schedule a separate conversation about estate tax planning. A GRAT, SLAT, or IDGT may reduce the taxable estate significantly.
3
Consider Medicaid planning if long-term care is a concern
If you or your spouse is within 10 to 15 years of potentially needing nursing home care, an irrevocable Medicaid trust may protect your rental properties from spend-down, but only if funded at least 5 years before you apply for Medicaid.
4
Skip the land trust unless a Georgia attorney recommends it for your specific situation
Land trusts are not the standard tool for Georgia real estate investors. The legal framework is unclear, and an LLC achieves most of the same goals with better-established protections under Georgia law.
What Happens to Your Trust if Georgia Law Changes?
A revocable trust is a private document. If the law changes (estate tax exemptions, Medicaid rules, LLC regulations), your attorney can amend the trust to reflect the change. This is not possible with most irrevocable trusts, which is another reason to start revocable unless there is a specific reason to go irrevocable now.
The trust document names your successor trustee, your beneficiaries, and your specific instructions for each property. If you want one property sold and two properties held for rental income, the trust says exactly that. Your successor trustee is legally bound to follow those instructions.
For most Georgia real estate investors, the question is not which type of trust is best. The question is why one is not already in place. Every day your properties are in your name (or in an LLC with no trust above it) is a day they are exposed to probate, incapacity, and inheritance disputes.
For more on the problems an LLC alone leaves unsolved, see Estate Planning for Georgia Real Estate Investors for the complete picture.
