Why a Will Does Not Transfer Rental Properties Directly
A will does not transfer property at death. It instructs a probate court on how you want your property transferred. The court then supervises the process — and that supervision takes time, costs money, and ties your family’s hands while it runs.
Every rental property you own in your personal name is an asset in your probate estate. When you die with a will, your family must open a probate case, get a personal representative appointed, and wait for the process to run before ownership transfers. During that time, your heirs have no legal authority to sell, refinance, or make management decisions about the properties. The executor steps into your landlord role but generally cannot sell or list a property without court permission unless your will explicitly grants independent administration authority under O.C.G.A. § 53-8-13.
The Executor Commission — 2.5% In, 2.5% Out
Georgia sets executor compensation by statute. Under O.C.G.A. § 53-6-60, the executor is entitled to 2.5% of all money received into the estate and 2.5% of all money paid out. These rates do not require court approval.
On a rental property estate with $500,000 in liquid assets: 2.5% of $500,000 received is $12,500. 2.5% of $500,000 paid out is another $12,500. Total executor commission: $25,000. That is before attorney fees, filing fees, or the months of rental income locked in an estate account.
For rental properties transferred to heirs in-kind rather than sold, the executor can petition the court for up to 3% of the appraised value under O.C.G.A. § 53-6-60(b)(2). A court-ordered appraisal is typically required to establish that value — adding cost to the process.
Attorney Fees — $3,000 to $8,000, No Statutory Cap
Georgia imposes no cap on probate attorney fees. Flat fees for a rental property estate run $3,000 to $8,000. Hourly rates run $350 to $450 per hour. A rental property estate is rarely straightforward — multiple properties, LLC membership interests, and any heir dispute extend the timeline and the meter.
Rental Income Is Locked During Probate
Georgia probate for an uncontested estate runs 8 to 18 months. During that period, any rental income your properties generate must be deposited into a restricted estate account. Your heirs cannot receive those funds until the estate is settled and the court approves the final accounting.
For a two-property portfolio generating $4,000 per month in net rental income, 12 months of locked income is $48,000 your family cannot access. That is not a court fee. That is cash flow that existed, that tenants paid, that sat in an estate account while your family waited.
A revocable trust does not do this. The successor trustee takes over immediately at death. Rental income continues flowing to beneficiaries with no lockout period.
What Your Family Cannot Do While Probate Is Open
The executor can collect rent and initiate evictions. What they generally cannot do without court permission:
- Sell any rental property — unless the will grants independent administration authority under O.C.G.A. § 53-8-13
- Refinance — lenders will not process a refinance on an estate asset in probate
- Make major capital improvements — expenditures beyond routine maintenance typically require court approval
- Distribute net rental income to heirs — all cash stays in the estate account until final accounting
If the market shifts during those 8 to 18 months, your family watches. They cannot act.
The Full Cost Comparison
| Cost |
Will + Probate |
Revocable Trust |
| Document preparation |
$500–$1,500 |
$3,500–$6,000 |
| Executor commission (5% of cash) |
$15,000–$30,000+ |
$0 |
| Attorney fees |
$3,000–$8,000 |
$0 at death |
| Court filing fees |
$200–$500 |
$0 |
| Publication costs |
$100–$300 |
$0 |
| Property appraisal (in-kind transfer) |
$500–$2,000 per property |
$0 |
| Locked rental income (8–18 months) |
$30,000–$80,000+ |
$0 |
| Total at-death cost |
$50,000–$120,000+ |
$0 |
The will is cheaper to create. Everything after creation runs in the opposite direction.
What a Trust Does Instead
A revocable living trust transfers your rental properties to your named beneficiaries the day you die. No court. No executor commissions. No attorney fees at death. No publication period. No 8-to-18-month wait.
The successor trustee you named steps in immediately. They can collect rent on the first of the month after you die. They can list a property for sale the same week. They can make management decisions without asking a probate court.
The trust also covers incapacity. If you have a stroke or illness before you die, your successor trustee manages the properties during that period — without a court-ordered conservatorship. A will does nothing while you are still alive.
For the full breakdown of the trust-plus-LLC structure for Georgia rental properties, see Best Way to Hold Rental Properties in Georgia for Estate Planning.
For the full cost breakdown of what probate actually looks like on a rental portfolio, see How Much Does Probate Cost for Georgia Rental Properties.
