What Joint Tenancy Means for Georgia Rental Property
Joint tenancy is a form of co-ownership. Two or more people own the same property simultaneously, each with an equal share. The defining feature is the right of survivorship: when one owner dies, their share passes automatically to the surviving owner — no probate, no court, no will required.
In Georgia, joint tenancy with right of survivorship must be stated explicitly in the deed. A deed that simply names two owners does not create joint tenancy — it creates tenancy in common, which does NOT avoid probate. The deed must include language such as “as joint tenants with right of survivorship, and not as tenants in common.”
For a complete overview of estate planning options for Georgia rental property owners, see Estate Planning for Real Estate Investors.
What a Trust Does for Georgia Rental Property
A revocable living trust transfers legal ownership of the property to the trust. You (and your spouse, if applicable) serve as trustees and manage the property exactly as before. When you die, the successor trustee you named distributes the property to your beneficiaries without court involvement.
For rental property, a trust does four things joint tenancy cannot: it covers incapacity, handles the “both owners die” scenario, works with an LLC structure, and keeps the inheritance private. Joint tenancy does none of these.
To understand how trust ownership interacts with your LLC, see Problems With Using an LLC Without a Trust for Georgia Rental Properties.
The Problems With Joint Tenancy for Rental Property
It only works if the co-owner survives you. If both owners die in the same accident — or within a short time of each other — joint tenancy provides no guidance. The property goes through probate anyway.
It does not cover incapacity. If you become unable to manage the property and there is no co-owner who can act, someone must petition the court for conservatorship. That process takes 3–6 months and costs $3,000–$8,000 in Georgia — all to manage a rental property that a trust would have handled automatically.
It terminates the LLC structure. An LLC cannot be a joint tenant. Joint tenancy is a form of personal ownership between individuals. If you hold rental property in an LLC for liability protection and also try to use joint tenancy, one structure has to give. Usually the LLC structure is abandoned. See One LLC vs. Separate LLC Per Rental Property in Georgia for how proper LLC and trust structures work together.
It exposes unmarried investors to gift tax. Adding a non-spouse partner to the deed as a joint tenant may constitute a taxable gift of half the property’s value under 26 U.S.C. § 2503. For a $300,000 rental property, that is a $150,000 gift — potentially subject to gift tax reporting.
It does not address children from prior marriages. Joint tenancy passes the property entirely to the surviving co-owner. If you intended children from a prior relationship to receive anything, joint tenancy overrides that completely and automatically.
When Joint Tenancy Seems to Work — And Why It Still Falls Short
Joint tenancy works for one narrow scenario: a married couple with one rental property, no children from prior relationships, no LLC structure, and similar ages and health.
In that scenario, joint tenancy avoids probate on the first death and costs almost nothing to set up.
The problem is that “seems to work” is not the same as “works completely.” When the surviving spouse dies, the property goes through probate because there is no longer a joint tenant to inherit it. A trust avoids probate on both deaths. Joint tenancy only delays the problem.
Joint Tenancy vs. Trust — Side-by-Side Comparison
|
Joint Tenancy |
Revocable Living Trust |
| Avoids probate on first death |
Yes |
Yes |
| Avoids probate on second death |
No |
Yes |
| Covers incapacity |
No |
Yes |
| Works with an LLC |
No |
Yes |
| Names contingent beneficiaries |
No |
Yes |
| Keeps assets private |
No |
Yes |
| Handles multiple properties |
Limited |
Yes |
| Cost to set up |
$400–$1,200 (deed) |
$3,500–$7,500 (full trust) |
How to Move Your Georgia Rental Property from Joint Tenancy into a Trust
1
Create the trust document
The trust names you as trustee, names a successor trustee, and names your beneficiaries. This is the governing document for everything else.
2
Prepare a new deed
A quitclaim deed or warranty deed transfers the property from your name (or joint names) into the name of the trust. Georgia requires this to be signed and notarized.
3
Record the deed at the county courthouse
Recording completes the transfer. Georgia requires a PT-61 real estate transfer tax form at recording — transfers into a revocable trust are typically exempt, but the form must still be filed.
4
Update your property insurance
Notify your insurance carrier that the property is now held in trust. Update the named insured on the policy to reflect the trust name. A policy in the wrong name can create coverage gaps.
Which Structure Is Right for Your Rental Property?
Use joint tenancy if you are married, own one property with no LLC, have no children from prior marriages, and cannot afford a trust right now. Understand that it only works on the first death.
Use a trust if you own more than one rental property, hold property in an LLC, have children from a prior relationship, are unmarried, or want the second death to also avoid probate.
For most Georgia rental property investors, a trust is the correct structure. The additional cost over joint tenancy is the difference between a plan that works once and a plan that works completely. For current pricing, see How Much Does Estate Planning Cost for Real Estate Investors in Georgia.
