How to Connect Your LLC to Your Trust in Georgia

Signing a trust does not automatically transfer your LLC into it. You need a separate legal document — an assignment of membership interest — that moves ownership of the LLC from your personal name to your trust. This page explains the two-step process and what the assignment document must include.

By Melissa Breyer, Esq. 8 min read

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An LLC not connected to a trust is an asset that goes through probate when you die. The LLC entity continues. Your ownership interest does not automatically transfer to anyone. Connecting them requires a specific legal step — an assignment of your membership interest to the trust.

This is not the same as signing a trust document. The trust document creates the trust. The assignment is what puts the LLC inside it. Many Georgia investors have one but not the other — and discover the gap only when it is too late to fix it.

This article explains exactly what the assignment is, how the process works, and what changes after it is completed.

What Connecting an LLC to a Trust Actually Means

A membership interest assignment is a legal document that transfers your ownership stake in the LLC from your personal name to the trust. After the assignment, you no longer own the LLC interest in your personal capacity. The trust owns it. You are still the trustee — you still control everything during your lifetime. The difference is what happens at death.

During your lifetime, nothing changes practically. You manage the LLC the same way. You sign documents the same way — now as trustee, not as individual member. Your Social Security number is still on the LLC’s tax return if it is a single-member LLC. The IRS treats a single-member LLC owned by a revocable trust the same way it treats one owned by an individual — as a disregarded entity. No new tax return. No new EIN required.

What the Assignment Document Contains

A properly drafted assignment of membership interest identifies:

  • The assignor (you, as the current member)
  • The assignee (your trust, by its full legal name)
  • The LLC being assigned
  • The percentage of membership interest being transferred (typically 100%)
  • The effective date

The assignment is signed by you as the member. In Georgia, there is no state filing requirement for the assignment itself — but the LLC’s operating agreement should be updated to reflect the trust as the member and to authorize the successor trustee’s authority. The operating agreement update is a separate document.

What Changes After the Assignment

After the assignment is completed:

  • The trust owns the membership interest — not you personally
  • Your successor trustee has authority over the LLC membership interest at your death — immediately, without court involvement
  • The LLC membership interest does not go through probate
  • Your successor trustee can manage, sell, or distribute the LLC’s assets according to your trust’s terms

What does NOT change: you still control the LLC during your lifetime as trustee. The LLC’s bank accounts, contracts, and leases are unaffected. Tenants do not need to be notified. Property managers do not need new agreements. The assignment is invisible from the outside.

The Operating Agreement Update

Most standard LLC operating agreements do not anticipate trust ownership. After the membership interest is assigned to the trust, the operating agreement should be amended to:

  • Identify the trust as the member
  • Authorize the trustee to act on the trust’s behalf as member
  • Specify what happens to the membership interest on the trustee’s death or incapacity

This amendment prevents a future dispute about whether the trust’s authority is valid under the operating agreement. It also ensures that a bank or title company — which may review the operating agreement when the LLC sells a property — sees clear authorization for the trustee’s signatures.

What Happens Without the Assignment

Without the assignment, the LLC membership interest stays in your personal name. When you die, it goes through probate. No one has authority to act as member of the LLC for 9 to 18 months. No one can direct the property manager, access the LLC bank account, sign lease renewals, or authorize repairs.

A trust document without the assignment is not enough. Signing the trust does not transfer the membership interest. The assignment is the operative step — and it must be completed before your death to be effective. For more on what happens when this step is skipped, see What Happens to Your LLC When You Die in Georgia. For the full picture of what a complete investor plan includes, see What an Estate Plan for a Georgia Real Estate Investor Actually Includes.

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Melissa Breyer

Melissa Breyer

Georgia Estate Planning Attorney

Melissa Breyer is a Georgia estate planning attorney who works exclusively on trust-based estate planning and LLC formation. She personally designs every plan at The Hive Law and handles every client consultation herself. Every plan is built from scratch for your specific family, your specific assets, and your specific wishes.

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Frequently Asked Questions

An assignment of LLC membership interest is a legal document that transfers your ownership stake in an LLC from your personal name into your revocable living trust. After the assignment, the trust owns the membership interest — and your successor trustee has immediate authority over the LLC at your death, without court involvement. The trust document alone does not transfer the membership interest — the assignment is a separate required document.

No. A single-member LLC owned by a revocable trust is still treated as a disregarded entity by the IRS — the same as one owned by an individual. Your Social Security number remains on the LLC’s tax return. You do not need a new EIN. You do not need to file a new tax return. The assignment has no effect on the LLC’s federal tax treatment during your lifetime.

No. Existing leases, vendor contracts, and property management agreements remain in place after the assignment. Tenants do not need to be notified. The property manager does not need a new agreement. The assignment is invisible from the outside — it is an internal ownership change that does not affect the LLC’s contracts or operations in any way.

Yes — it is strongly recommended. A standard LLC operating agreement does not anticipate trust ownership. After the assignment, you should amend the operating agreement to identify the trust as the member, authorize the trustee to act on the trust’s behalf, and specify what happens to the membership interest when the trustee dies or becomes incapacitated. Banks and title companies often review the operating agreement when the LLC buys or sells property — the amendment ensures clear authorization for the trustee’s signatures.

A trust document creates the trust structure and names the trustee, successor trustee, and beneficiaries. An LLC assignment transfers a specific asset — the membership interest — into that trust. You need both documents, and they serve different purposes. Signing a trust without completing the assignment leaves the LLC membership interest in your personal name, where it goes through probate when you die.

The assignment document itself is not technically complex, but it must be correctly drafted and signed to be legally effective in Georgia. The operating agreement amendment also requires careful drafting to ensure it is consistent with the LLC’s original formation documents and Georgia LLC law. An error in the assignment can leave the membership interest outside the trust — defeating the entire purpose of the planning. Most Georgia real estate investors have this done as part of their complete estate plan.

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