What It Costs to Own Rental Properties in Multiple States Without a Trust

The Cost of a Multi-State Probate Without a Trust

When a Georgia resident dies owning rental properties in multiple states, the estate opens a primary probate proceeding in Georgia — and a separate ancillary proceeding in every other state where real property is titled in the owner’s name.

These proceedings do not share a timeline. They do not share an attorney. They do not combine costs. Each state runs its own case under its own law, and each case generates its own attorney fees, filing fees, and court costs.

For a Georgia investor with properties in three states, the total cost of estate settlement can reach $50,000 to $80,000 or more across all proceedings — before carrying costs, property management during probate, or contested claims are factored in.

Georgia Probate Costs for a Real Estate Investor

Georgia does not set a statutory fee schedule for probate attorneys. Fees are unregulated and charged at market rate: $350–$450 per hour, or as a flat fee of $3,000–$8,000 for straightforward estates. Complex estates — including those with real property, LLCs, or multiple asset classes — routinely exceed those ranges.

Executor commissions are set by statute. Under O.C.G.A. § 53-6-60(b), the executor receives 2.5% of all money received into the estate plus 2.5% of all money disbursed — effectively 5% of all estate assets flowing through the executor’s hands. On a $400,000 estate, that commission reaches $20,000 before a single attorney bill is paid.

The Georgia probate timeline for a real estate investor with multiple properties runs 18 to 30 months for an uncontested estate. For a full breakdown, see the article on the cost of probate for Georgia rental properties.

Florida Ancillary Probate — What It Actually Costs

Florida is the most expensive ancillary jurisdiction a Georgia investor is likely to face. Attorney fees follow a statutory schedule under F.S. § 733.6171: $3,000 for the first $100,000 of estate value, then 3% on amounts between $100,001 and $1,000,000.

On a single $400,000 Florida rental property, the attorney fee is approximately $12,000. On a $500,000 property, it reaches $15,000. These are fees for the Florida attorney alone — your Georgia attorney handles Georgia separately.

Florida law creates an additional cost most investors do not anticipate. F.S. § 733.6171 explicitly classifies ancillary administration as an extraordinary service, entitling Florida attorneys to further reasonable compensation beyond the ordinary fee schedule. The base fee applies first; the ancillary classification permits additional fees on top of it.

Personal representative commissions in Florida mirror the attorney fee schedule and are sometimes waived by family members. If not waived on a $400,000 property, commissions add another $12,000 to the total.

North Carolina Ancillary Probate

A Georgia investor who dies owning North Carolina rental property must open a separate ancillary proceeding under N.C. Gen. Stat. Chapter 28A, Article 26. The property stays in North Carolina administration — it cannot be transferred to the Georgia representative — until it is either sold or formally distributed through the North Carolina court.

North Carolina does not publish a statutory attorney fee schedule for ancillary probate. Fees are set at market rate. For a property worth $300,000–$500,000, expect fees to run $3,000–$6,000 (obtain a local quote).

What Happens to Rental Income While Probate Runs

During probate — in every state — rental income belongs to the estate, not the heirs. The executor steps into the landlord role: collecting rent, managing properties, complying with landlord-tenant law in each state, and maintaining financial records for the court.

Beneficiaries cannot access rental income until probate closes and the court approves final distribution after all debts, taxes, and fees are paid.

For a portfolio generating $8,000 per month in gross rental income across three states, an 18-month probate proceeding means $144,000 in gross rents flowing through the estate — subject to administration costs and estate income tax — before a dollar reaches the heirs.

The LLC Membership Interest Problem

Many Georgia investors hold rental properties inside single-member LLCs, assuming the LLC structure avoids probate. For the Georgia property, the LLC does not solve the problem.

Under O.C.G.A. § 14-11-506, when a Georgia LLC member dies, the executor receives the rights of an assignee of the membership interest — not full membership rights. The LLC membership interest itself is a Georgia probate asset.

If the Georgia LLC holds out-of-state rental property, the property is titled in the LLC’s name — which generally avoids ancillary probate in that state. But the Georgia LLC membership interest still goes through Georgia probate. If you hold the out-of-state property in your personal name or in a separate state LLC, ancillary probate in that state applies directly.

No LLC configuration eliminates the probate problem without a trust holding the membership interest. For the full cost breakdown of the complete structure, see the article on setting up an LLC for rental properties in Georgia.

How a Revocable Trust Eliminates the Multi-State Problem

A revocable living trust solves the multi-state probate problem at the root. When real property is titled in the name of the trust before the owner’s death, there is no probate estate in that state — and no ancillary proceeding.

The complete setup costs $3,500–$6,000 for a typical Georgia real estate investor. For a full price breakdown, see how much estate planning costs for Georgia real estate investors.

The Full Cost Comparison