[GA] [GA] Can I put an LLC into a trust?

Lexi, Chatbot

I understand you're looking to protect your assets through a family revocable trust. Have you consulted with a lawyer specializing in estate planning before creating the trust?

Lexi, Chatbot

Are you looking to transfer ownership of the LLC that owns the investment property into the trust as well, or are you considering a different arrangement for that asset?

Lexi, Chatbot

Is there anything else the Lawyer should know before I connect you? Rest assured they'll be able to help with transferring the LLC into the family revocable trust.

Andres Sanchez

Hello my name is Andres Sanchez and I am an attorney with 20 years of experience. What state are you in?

Andres Sanchez

Great question — you’re thinking about this the right way. Here’s how this generally works in Georgia:

1. Should you put the LLC under the revocable trust?

Pros

• Estate planning: On your death (or your spouse’s), the trust can smoothly transfer ownership of the LLC without going through probate.
• Centralization: All assets (home, LLC, investments) are managed under the trust, which simplifies administration.
• Continuity: If you become incapacitated, your successor trustee can step in and manage the LLC without needing court involvement.

Cons

• Liability protection doesn’t increase: The LLC already protects your personal assets from liabilities of the rental property. Moving LLC ownership into your trust does not create more liability protection.
• Tax reporting stays the same: Since your trust is revocable, the IRS still treats you personally as the taxpayer. You’ll continue to file the same partnership return (Form 1065) for the LLC.
• Banking/loan issues: If your LLC has an operating agreement or a bank loan, sometimes lenders require notice/consent before you transfer ownership.
• Most estate planning attorneys in Georgia do recommend placing membership interests in an LLC into the trust for probate avoidance and succession purposes.

2. How to put the LLC under the trust:

You don’t deed the property into the trust directly — you transfer your LLC membership interests. The LLC itself continues to own the rental property.

Steps:

• Review the LLC operating agreement: Check if there are restrictions on transferring membership interests (many require unanimous consent of members).
• Prepare an Assignment of Membership Interest: You and your wife (as individual owners) assign your membership units to yourselves as trustees of your revocable trust.
  Example: “John Doe and Jane Doe hereby assign their 100% membership interest in XYZ, LLC to John Doe and Jane Doe, Trustees of the Doe Family Revocable Trust dated [date].”
• Update LLC records: Amend the company’s operating agreement or membership ledger to reflect that the new member is the trust (via you and your wife as trustees).
• File with Georgia Secretary of State if needed: Georgia doesn’t require disclosure of members in the annual registration (only managers/registered agents), so often no filing is required. But check if your LLC listed members and update if necessary.
• Notify banks/lenders: If the LLC has a bank account or mortgage, provide updated ownership information. Some institutions may request a copy of the trust’s certificate of trust (a shortened summary instead of the full trust).

3. Practical tip: It’s usually wise to have your estate planning attorney or business attorney draft/record the membership assignment so you don’t run into issues later (especially with operating agreements or lender restrictions). It’s not a complicated step, but it does need to be precise.

Andres Sanchez

Good question — this is a common point of confusion.

1. Do you register a revocable trust in Georgia?
   No registration is required. In Georgia (and most states), a revocable living trust is a private agreement between the settlors (you and your wife) and the trustees (also you and your wife). Unlike wills, trusts are not filed with the probate court or the Secretary of State.

2. What makes it valid?

• Signed and notarized: Georgia law requires the trust to be signed by the settlor(s). Notarization isn’t technically mandatory, but it is strongly recommended for authenticity and to make it easier when transferring assets (banks, title companies, etc. usually expect notarization).

• Witnesses: Georgia does not require witnesses for a trust (different from a will).

• Certificate of Trust: Instead of handing out the full trust to banks, you can prepare a short “Certification of Trust” that summarizes trustee powers, names, and date of trust. Georgia law (O.C.G.A. § 53-12-282) recognizes this.

3. When does the trust become “official”?
   The trust becomes legally effective as soon as it is properly executed (signed, dated, ideally notarized). The act of funding the trust (transferring your house deed, assigning LLC membership interests, moving accounts, etc.) is what makes the trust functional.

Andres Sanchez

Yes — you can, but it works a little differently than with U.S. assets.

1. Can a Georgia revocable trust hold an international bank account?
   Yes, in principle. Your trust can own any asset you can legally transfer title to, including foreign bank accounts. But it depends on the foreign bank. Some foreign jurisdictions do not recognize U.S. revocable trusts, or they may require special documentation before allowing you to retitle the account into the trust’s name.

2. Common issues with international accounts

• Bank requirements: Many foreign banks will ask for:

  • A notarized and apostilled copy of the trust, or

  • A “Certificate of Trust” translated into their language.

• Local law conflicts: In some countries, their inheritance laws (forced heirship, marital shares, etc.) override U.S. trust planning. This means that even if the trust holds the account, their law might still dictate where the funds go upon death.

• Tax reporting: You must continue filing FBAR (FinCEN Form 114) if your foreign accounts exceed $10,000 aggregate. FATCA reporting (Form 8938) may also apply. Having the trust as owner doesn’t remove those U.S. reporting obligations.

3. Alternatives if direct transfer isn’t feasible

• Name the trust as a POD/beneficiary: If the foreign bank won’t retitle the account into the trust, you may be able to set the trust as the beneficiary on death (similar to a payable-on-death designation in the U.S.).

• Separate offshore trust: For large foreign assets, some families set up a trust in the same jurisdiction as the bank, coordinated with their U.S. revocable trust.

I hope everything works out for you.

Andres Sanchez

You're welcome.