What Happens to Your Properties When You Die Without a Plan
When a Georgia real estate investor dies without a will or trust, state intestate succession law controls every asset — including rental properties. Under O.C.G.A. § 53-2-1, if you are married with children, your spouse and children divide your estate equally, with your spouse receiving no less than one-third. A rental property in your personal name does not pass automatically to your spouse.
The practical result: your heirs become tenants in common on every property. Each co-owner has an undivided interest, the right to use the property, and the right to sell their share to anyone. A spouse who wanted to keep the rental portfolio generating income now co-owns it with adult children who may want to sell immediately.
Before any of this happens, probate court takes over. No one has legal authority to manage your properties, collect rent, sign leases, or authorize repairs until the court appoints a personal representative. For a portfolio with multiple tenants, that gap — which can run weeks to months — creates immediate operational problems.
The Probate Cost Stack
Probate for a Georgia real estate investor is classified as a complex estate by default. Multiple properties, LLC interests, and out-of-state holdings all add cost and time. Here is what each category looks like for a three-property investor with an $800,000 portfolio.
1
Attorney Fees — $4,000 to $24,000+
Georgia probate attorneys charge either hourly ($350 to $450 per hour) or a percentage of the estate value (1% to 3%). On an $800,000 portfolio at 3%, that is $24,000 in attorney fees alone. Every contested motion and out-of-state coordination adds hours to the bill.
2
Executor Commission — Up to $40,000
Under O.C.G.A. § 53-6-60, the executor can charge 2.5% of all money received and 2.5% of all money paid out — up to 5% total. On an $800,000 estate, that reaches $40,000. A family member is legally entitled to this fee and often takes it.
3
Property Appraisals — $350 to $500 Per Property
Every property must be appraised before the court authorizes distribution. Three properties cost $1,050 to $1,500 in appraisal fees. A contested estate may require a second appraisal per property at the estate’s expense.
4
Court and Filing Fees — $225 to $265 Plus Additional Motions
Georgia probate court filing fees start at $225 to $265. Each additional filing carries its own fee. A three-property estate with two years of court involvement can accumulate $1,500 to $3,000 in filing fees alone.
5
Accounting and Administrative — $1,000 to $5,000+
An estate with three rental properties and 18 to 30 months of income requires professional accounting. Rent receipts, maintenance, insurance, and taxes must be tracked and reported to the court. CPA fees commonly run $1,000 to $5,000. Add death certificates ($25 each; you will need 10 to 20) and legal notice publication.
These five categories commonly total $27,300 for a complex Georgia estate. That figure does not include what your family loses while the estate sits in court.
Locked Rental Income: The Cost No One Calculates
During probate, tenants keep paying rent. But that money goes into a restricted estate account that no heir can use for personal expenses until probate closes. The executor collects it, pays estate expenses from it, and accounts for every dollar to the court.
For a three-property investor generating $4,500 per month in net rental income, that is $81,000 locked up over 18 months — and $135,000 if probate runs the full 30 months. The family cannot use this money to pay their own bills or make any investment. It sits until a judge says otherwise.
The Forced Sale Risk
Intestate succession creates tenants-in-common ownership. Under O.C.G.A. § 44-6-160, any co-owner can file a partition action to force a sale and divide the proceeds. For rental properties, physical division is almost never possible. The court orders a sale.
Court-supervised partition sales consistently close 10% to 30% below market value. Buyers know the estate is constrained and negotiate accordingly. On a $300,000 rental property, a 20% discount costs your family $60,000.
Georgia’s Uniform Partition of Heirs Property Act (O.C.G.A. § 44-6-185) adds a specific risk: an outside investor can buy one heir’s share and then force a partition sale over the objection of your surviving spouse or other heirs.
Out-of-State Properties Mean a Separate Probate in Every State
Georgia probate does not cover property in other states. An investor who owns rentals in Florida, Tennessee, or South Carolina must open a separate probate proceeding in each state — called ancillary probate. Each requires its own attorney, its own court filings, and its own timeline.
Ancillary probate in a neighboring state commonly runs $3,000 to $5,500 per state in attorney and court fees. An investor with properties in Georgia and two other states faces three proceedings running simultaneously, each on its own schedule. Georgia probate does not close until all ancillary proceedings close.
The LLC Trap
Many Georgia real estate investors assume holding properties in an LLC protects their family from probate. It does not — unless a trust owns the LLC membership interest.
When an LLC member dies, the membership interest passes through probate, not the property itself. If your operating agreement does not assign membership to a trust, the probate court controls who steps into that membership seat. Until the court resolves that question, no one can authorize the LLC to collect rent, approve repairs, or sign a lease renewal.
The Full Cost of Doing Nothing: A Georgia Investor Scenario
Three rental properties. Two in Georgia, one in Tennessee. $800,000 total portfolio. $4,500 per month net rental income. No will, no trust, no succession plan in the LLC operating agreement.
1
Probate Attorney Fees — $27,300
Complex Georgia probate with multiple properties, LLC interests, and an out-of-state property. Average documented cost for complex estates in Georgia.
2
Executor Commission — $40,000
2.5% of $800,000 received plus 2.5% of $800,000 paid out. An adult child serving as executor takes this — they are legally entitled to it.
3
Ancillary Probate in Tennessee — $4,250
Separate probate proceeding for the Tennessee property. Georgia probate does not cover it. Tennessee attorney, Tennessee court, Tennessee timeline.
4
Locked Rental Income — $81,000
$4,500 per month locked in the estate account for 18 months. The family cannot access this cash. It does not earn meaningful interest. It sits.
5
Forced Sale Discount — $25,000
One heir wants to sell. Another wants to keep. A partition action results in a court-ordered sale at 10% below market on a $250,000 property.
Total estimated cost of inaction: $177,550. This does not include depreciation recapture tax on the forced sale, legal fees for the partition action, or costs if heir disputes escalate to litigation.
What It Costs to Have a Plan Instead
A complete revocable trust-based estate plan at Atlanta Estate Planning starts at $3,500 for a single-property investor. A three-property investor with two in-state properties and one out-of-state property pays between $5,500 and $6,500 depending on the structure needed.
When the trust is properly funded, there is no Georgia probate. There is no ancillary proceeding in Tennessee. The successor trustee takes over management on the first business day after death. Tenants receive continuity. Mortgages are paid. The rental income keeps flowing to the family.
For the full pricing breakdown, see How Much Does Estate Planning Cost for a Real Estate Investor in Georgia.
For the best structure to hold rental properties and avoid both probate and liability exposure, see Best Way to Hold Rental Properties in Georgia for Estate Planning.
