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In Georgia, probate is a court-supervised process that settles a deceased person’s estate by gathering assets, paying debts and taxes, and distributing the remaining property to heirs or beneficiaries. In this respect, it can give family members a clear way forward during a time of transition. Still, many people wonder if there are ways to keep certain assets outside of this system so that transfers happen more directly. That’s where trusts become part of the conversation.

An irrevocable trust is one option. By transferring title during life, the grantor no longer holds the property in their own name, and assets properly placed into the trust are managed and distributed under its terms, usually without going through probate. In this guide, we’ll outline how irrevocable trusts work under Georgia estate law and how to create one that meets your estate planning needs.

Why Would You Want to Avoid Probate?

While probate has an important role in settling estates, many Georgia families prefer to limit how much property passes through it. Their reasons usually fall into three categories: time, cost, and privacy. Each plays a role in why people look at trusts and other estate planning tools as alternatives.

• Time: Probate doesn’t always move quickly in Georgia. The court has to review filings, confirm the will, allow creditors to submit claims, and oversee the distribution of assets. If disputes arise or paperwork is incomplete, the process can stretch out even longer. 
• Cost: The probate process involves filing fees, attorney fees, and expenses tied to administering the estate. These costs reduce the overall value that beneficiaries eventually receive. The longer probate continues, the higher those costs can climb, which is why people look for ways to limit them.
• Privacy: Probate administration details are part of the public record in Georgia. That means information about the estate, including asset distributions, can be accessed by others. For families who value privacy, moving property through a trust or other method keeps those details out of public view.

What Is an Irrevocable Trust?

An irrevocable trust is an estate planning tool that shifts ownership of property from an individual to a separate legal arrangement. Once property is transferred into the trust, the grantor gives up direct control, and the trustee manages it for the benefit of named beneficiaries. Here’s an overview of the parties involved:

• Grantor: The person who creates the trust and transfers assets into it. Once the transfer is complete, the grantor can’t easily change the trust’s terms or take the property back.
• Trustee: The individual or institution (professional trustee) responsible for managing the trust property. The trustee must follow the instructions written in the trust agreement and act in the best interests of the beneficiaries.
• Beneficiaries: The people or organizations who receive benefits from the trust. They may get income, property, or other asset distributions as outlined in the trust document.

Because the grantor gives up control of an asset when transferring the asset to an irrevocable trust, assets in irrevocable trusts are no longer considered part of the grantor’s estate. Because assets in an irrevocable trust are not in the grantor’s estate at their death, those assets bypass probate.

What Kinds of Assets Can You Place in an Irrevocable Trust?

Irrevocable trusts can hold many types of property. This includes:

• Real Estate: Homes, vacation properties, investment properties, and other real property can be retitled into the trust. A new deed is prepared and recorded to show the trust as the owner.
• Financial Accounts: Checking accounts, savings accounts, certificates of deposit, and brokerage accounts may be transferred. This step requires updating account registrations with the bank or financial institution.
• Business Interests: Shares in a corporation, membership units in an LLC, or partnership interests can be placed in a trust. The trustee manages the ownership interest and ensures smoother succession planning.
• Life Insurance Policies: By naming the trust as the owner and beneficiary of a life insurance policy, proceeds are paid directly into the trust at death. This can help avoid probate and direct the funds according to the trust’s terms.
• Investment Assets: Stocks, bonds, and mutual funds can be assigned or transferred into the trust. This lets the trustee oversee investments and distribute returns or principal according to the trust’s instructions.
• Personal Property: Valuable items such as jewelry, art, antiques, and collections may also be transferred into the trust. Documentation, like bills of sale or assignment documents, may be used to confirm the transfer.

Benefits of Using an Irrevocable Trust

An irrevocable trust has several advantages beyond simply bypassing probate. When properly structured, they bring predictability, control, and potential protections that make planning easier for both you and your beneficiaries.

• Maintaining Privacy: Irrevocable trust distributions aren’t usually filed with the probate court, so details about property, how and when it’s transferred, and to whom it goes stay private. This can reduce public visibility into the value of an estate, the identity of heirs, and the timing of distributions, keeping these sensitive arrangements more confidential.
• Streamlined Transfers: The trust document gives the trustee the legal authority to distribute assets according to the grantor’s instructions. Because distribution doesn’t require court approval, your beneficiaries can receive the trust assets sooner. 
• Asset Protection: Because trust property is legally separated from the grantor’s personal assets, those holdings may be shielded from future lawsuits or claims against the grantor, depending on how the trust is drafted and funded. This separation can provide important protection, especially if structured with spendthrift or other protective provisions.
• Planning for Long-Term Care: Irrevocable trusts are commonly used as part of long-term care or Medicaid benefits planning in Georgia. Placing property in a trust well in advance may help preserve Medicaid eligibility or protect assets intended for heirs from being used for care costs. 

Do Irrevocable Trusts Help You Avoid Estate Taxes Too?

Some people assume an irrevocable trust will reduce or eliminate estate taxes in Georgia. In reality, the state no longer collects an estate tax: Georgia ended its estate tax in 2014. Federal estate tax is a different question: the federal government applies estate tax only if the total value of your estate exceeds the federal exemption amount. For most people in Georgia, that exemption is high enough that the federal estate tax doesn’t apply.

If your estate may exceed the federal threshold, an irrevocable trust can play a role in tax planning. For example, it may remove property from the taxable estate or direct how assets are managed for future generations. But for the vast majority of Georgians, the main benefit of an irrevocable trust is avoiding probate and providing a clear system for the transfer of assets.

When Probate May Still Be Needed

Irrevocable trusts are powerful tools, but they don’t automatically guarantee that every asset avoids probate. Certain situations can still trigger probate proceedings, and knowing these exceptions helps you prepare accordingly.

• Unfunded or Forgotten Assets: If property is never transferred into the trust, such as a house still titled in the grantor’s name, it will pass through probate. For example, if you set up an irrevocable trust but forget to retitle your vacation cabin, that cabin must go through probate before your heirs can receive it.
• Improper Trust Funding: Even if a grantor intends to transfer an asset, mistakes in paperwork or record-keeping can leave it outside the trust. If a bank account is meant to be added to the trust, but the account holder never updates the title, it becomes part of the probate estate.
• Creditor Claims: Under Georgia law, certain creditors may still reach assets in an irrevocable trust, especially if those assets could have been distributed to the grantor before death. If a grantor has an irrevocable trust that pays them income during life, and they pass away with outstanding medical bills, creditors may reach trust income that was payable to them before death if the estate can’t cover those debts.
• Revocable Trusts That Become Irrevocable: A revocable trust becomes irrevocable at death. However, property in it may still be subject to probate-related claims if the estate doesn’t have enough to satisfy obligations. For example, if a revocable trust holds investment accounts but the estate has unpaid taxes and not enough liquid assets, those trust accounts may be tapped to cover what’s owed.
• Beneficiary Disputes: While trusts help reduce court involvement, disagreements between beneficiaries can sometimes bring the probate court back into the picture. In other words, if two siblings disagree over whether the trustee is managing property fairly, the dispute ends up in court, pulling the probate judge into the process to resolve it.

Trade-Offs and Considerations

Irrevocable trusts bring many advantages, but they also have limits you’ll want to weigh beforehand. These aren’t drawbacks so much as reminders that trusts require careful planning. By knowing what to expect upfront, you can create a trust that works the way you intend.

• Limited Flexibility: Once you create an irrevocable trust, it’s generally difficult to change. While this permanence may feel restrictive, it also adds certainty. Your beneficiaries know what to expect, and you can be confident that your wishes will be honored.
• Funding the Trust: An irrevocable trust only works if you transfer property into it. That means updating deeds, retitling accounts, and making sure records reflect the trust’s ownership. When you take the time to complete this step, you ensure that the trust can achieve its purpose.
• Choosing a Trustee: The trustee manages and distributes property according to its established terms. Picking someone reliable is key, because they’ll be the one carrying out your directions. Many people find peace of mind by choosing someone organized and trustworthy.
• Coordination With Other Tools: An irrevocable trust isn’t the only part of an estate plan. Beneficiary designations, wills, and joint ownership arrangements should match the trust’s goals. Making sure these pieces fit together avoids confusion later and ensures every asset is handled the way you want.
• Legal and Administrative Costs: Setting up and maintaining an irrevocable trust involves some expense, from drafting to possible trustee fees. But these costs are part of the trade-off for the privacy, efficiency, and protections the trust provides, and many people find that the value outweighs the expense.

Irrevocable trusts let you reduce the role probate plays in the transfer of assets after you pass. By shifting ownership during your lifetime, you create a structure that allows assets to move according to your instructions instead of waiting on court oversight. This can save time, maintain privacy, and provide greater certainty for those who receive the trust property.

At the same time, trusts aren’t a one-size-fits-all solution. They work best when carefully created, fully funded, and coordinated with the rest of your estate plan. With the right approach, you can use an irrevocable trust to simplify transitions and give the people you care about an easier experience. 

Speak to an Atlanta Estate Planning Attorney Today

An irrevocable trust can be a practical way to direct how your estate is handled after you pass. By creating and funding one properly, you keep assets out of probate and make sure they’re managed and distributed under the terms you set up beforehand.

At Brightside Lawyers, we approach estate planning with a forward-looking perspective. We’ll draft the documents for you, make sure transfers are handled correctly when the time comes, and show you how a trust can work alongside other legal arrangements. If you’d like to explore how an irrevocable trust could fit into your estate plan, we’re here to help. To schedule a consultation, call our law office at (404) 492-9559.