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BUSINESS OWNER PLANNING

How Much Does It Cost if a Georgia Business Goes Through Probate?

When a Georgia business owner dies without a succession plan, the business goes through probate. The cost comes in two forms: statutory fees paid to the executor and attorneys, and revenue the business cannot collect while operating without legal authority for 9 to 18 months. Together these costs typically exceed the first full year of probate attorney fees before the estate closes.

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Georgia business probate costs money in two ways. The first is visible: statutory executor compensation and attorney fees calculated as a percentage of the gross estate. The second is invisible until it happens: revenue the business cannot collect while operating without authorized decision-makers for 9 to 18 months. Most business owners see the fee schedule and assume they understand the cost. They miss the revenue problem entirely.

The Business Pays in Two Ways

Georgia business probate has two cost categories. Statutory costs are calculable in advance: executor compensation at 2.5 percent of all cash received plus 2.5 percent of all cash disbursed under O.C.G.A. 53-6-60, plus attorney fees approved by the Probate Court. For a $1 million business estate, statutory costs run $30,000 to $70,000.

Revenue costs are invisible on the fee schedule but almost always larger. From the moment the owner dies until the Probate Court issues Letters Testamentary, no one has legal authority to sign contracts, access business accounts, or make binding decisions. That window averages 6 to 12 weeks just to open. The full proceeding takes 9 to 18 months.

What Georgia Executor Fees Cost for a Business Estate

Georgia executor compensation is calculated on cash flows, not asset value. The formula applies 2.5 percent to every dollar received and 2.5 percent to every dollar disbursed. For a business generating $500,000 in annual revenue over an 18-month proceeding, executor compensation on cash flows alone exceeds $18,000 before asset proceeds are counted.

Executors can waive their statutory fee. Most do not when the estate involves a business, because managing a business estate involves real work and real liability.

What Attorney Fees Cost in Georgia Business Probate

Attorney fees in Georgia probate are not capped by statute. Business probate is classified as complex, which typically means hourly billing at $300 to $450 per hour. The work includes opening the estate, obtaining a formal business appraisal ($3,000 to $7,500), handling creditor claims, maintaining LLC compliance during the proceeding, and distributing the business interest at close.

Total attorney fees for a business estate with a single LLC run $15,000 to $45,000. Multi-entity businesses or businesses with partners routinely exceed $60,000.

What the Business Loses in Revenue During Probate

Three revenue loss categories are consistent across Georgia business probates:

  • Client attrition: Professional service businesses typically lose 15 to 30 percent of active clients within the first 90 days. At $600,000 annual revenue, that is $22,500 to $45,000 in lost recurring revenue per quarter.
  • Contract delays: Any contract requiring the owner’s signature is stalled. For businesses mid-project, this means disputed invoices, penalty clauses, and lost follow-on work.
  • Valuation discount: The business is appraised while operating at reduced capacity. The appraisal captures the distressed value, not the going-concern value. Heirs receive less than the business was worth before probate began.

Why a Business Probate Costs More Than a Personal Probate

A personal estate goes through probate with minimal complexity. A business estate adds four layers that do not exist in personal estates: ongoing operations the executor must manage, a formal business valuation required by the court, co-owner disputes over the estate’s share, and tax events requiring specialized counsel. Each layer adds cost and time to the proceeding.

How a Succession Plan Eliminates Both Costs

A succession plan transfers the LLC membership interest through a revocable trust. The successor trustee has authority from day one. No probate. No court. No revenue gap. The complete succession plan costs $8,000 to $10,000 for a sole owner with one LLC. See the full pricing breakdown.

For most Atlanta business owners, the succession plan costs less than three months of the revenue they would lose if the business went through probate. See what it costs to die without a succession plan for the full numbers.

THE COMBINED COST
Fees Plus Lost Revenue
$30,000–$70,000
Total Probate Cost
9-18 Mo.
Minimum Timeline
34%
Business Value Discount

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Melissa Breyer

Melissa Breyer

Georgia Estate Planning Attorney

Melissa Breyer is a Georgia-licensed estate planning attorney focused exclusively on trust-based planning for individuals and families. She personally meets with every client and designs every plan from scratch. No templates. No associates handling your case. Every plan is built for your specific family, your specific assets, and your specific wishes.

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Frequently Asked Questions

Georgia business probate costs come in two categories. Statutory costs — executor compensation at 2.5% of cash received and disbursed, plus attorney fees — typically run $30,000 to $70,000 for a $1 million business estate. Revenue costs — income the business cannot collect while operating without legal authority for 9 to 18 months — are almost always larger. Client attrition, stalled contracts, and a distressed business valuation are the three primary revenue losses.

Georgia executor compensation is set by O.C.G.A. 53-6-60 at 2.5 percent of all cash received plus 2.5 percent of all cash disbursed. For a business with $500,000 in annual revenue during an 18-month probate, executor compensation on cash flows alone exceeds $18,000 before asset proceeds are counted.

The business can continue operating, but without a legally authorized principal for the first 6 to 12 weeks until Letters Testamentary issue. No one can sign new contracts, execute binding agreements, or access business accounts in the deceased owner’s name during that window. After Letters Testamentary issue, the executor can manage the estate — but may not have the operational knowledge to run the business for the full 9 to 18 months of the proceeding.

A succession plan transfers the LLC membership interest into a revocable living trust before anything happens to the owner. When the owner dies, the successor trustee has authority immediately. No court, no probate, no revenue gap. The plan costs $8,000 to $10,000 for a sole owner with one LLC — less than the attorney fees alone in most Georgia business probates.

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