How to Set Up a Trust in Georgia to Protect Your Family
How to set up a trust in Georgia: A step-by-step guide
When a loved one passes, the last thing any family wants is to get stuck in legal limbo. But without the right planning, important assets can get tied up in Georgia’s probate courts, a public process that can stretch on for months (or even years).
A trust helps you spare your family that burden. Setting up a trust in Georgia requires you to name a trustee and beneficiaries, determine which assets to include, and legally transfer those assets into the trust.
In this guide, I’ll show you exactly how to do it.
What is a trust and why do you need one?
A trust is a legal arrangement that allows one person or entity (the trustee) to manage assets on behalf of others (the beneficiaries). As the person creating the trust, you (the grantor) decide which assets to include and how they should be distributed.
A revocable living trust is one of the most common options for Georgia residents because it offers flexibility and keeps your assets out of probate.
The benefits of creating a trust in Georgia include:
- Avoiding probate: Assets in a trust usually bypass the lengthy and public probate process.
- Maintaining privacy: Trust documents generally remain private, whereas probate records are public.
- Protecting your family: Trusts can protect your irresponsible heirs or your heirs’ creditors and provide for special needs or charitable causes without disruption.
- Controlling how your wealth is distributed: You can establish specific rules about when and how beneficiaries receive funds from your estate.
7 steps to setting up a trust in Georgia
Creating a trust in Georgia is more straightforward than you might think. Here are 7 simple steps that will help you protect your loved ones and provide peace of mind in your estate planning process:
- Choose the right type of trust for your family’s needs
- Choose the best trustee to carry out your wishes
- Decide what assets to include in the trust
- Choose your beneficiaries
- Draft, sign, and notarize the trust document
- Fund your trust by transferring your assets
- Store your trust documents safely and keep them up to date
1. Choose the right type of trust for your family’s needs
Before you set up a trust, it helps to be clear on what you want it to accomplish for the people you care about most.
Common goals for a trust include:
- Avoiding probate
- Providing for minor children
- Protecting assets from creditors
- Managing assets for beneficiaries with special needs
- Supporting charities
- Controlling how and when heirs receive an inheritance
Once you’re clear on your priorities, you and your attorney can choose the type of trust that’s best for your goals. In Georgia, the most common trust is a revocable living trust, which keeps your assets out of probate while allowing you to retain control of those assets while you’re still alive. Other common trust types include irrevocable trusts, special needs trusts, and testamentary trusts.
Is there a difference between a trust and a living trust?
Not really. A living trust simply means you’re creating the trust while you’re still alive. It’s one of the most common types of trusts because it lets you stay in control of your assets while you’re here, and helps your loved ones avoid probate after you’re gone.
All trusts involve a grantor (that’s you), a trustee (the party managing the trust), and beneficiaries (the people who will inherit your assets). A revocable living trust gives you the flexibility to make changes during your lifetime, while an irrevocable trust locks in the terms and provides stronger asset protection.
2. Choose the best trustee to carry out your wishes
Your trustee is the person or organization that will manage your trust and ensure everything is handled according to your instructions. It’s an important role, and choosing the right person is one of the most meaningful decisions you’ll make as you set up your trust.
You can name yourself as the trustee for a revocable living trust, with successor trustees who will step in if you become incapacitated or pass away. This is a popular choice for people who want to maintain control of their assets during their lifetime.
You might choose to name someone you trust, like a family member or close friend. (In Georgia, your trustee does not need to be a Georgia resident.) Or you might name a professional trustee, such as a trust company or bank. Your attorney can help you think through your options and set your trustee up for success.
What to consider when choosing a trustee:
- Financial responsibility
- Organizational skills
- Willingness and availability
- Ability to act impartially and honor your wishes
- Comfort level with taxes, investments, and legal obligations
- Stability, especially if the trustee will manage assets for children or other dependent beneficiaries
3. Decide what assets to include in the trust
Think about the assets that matter most to you—your home, savings, business, family heirlooms, etc. These are the things your trust can protect and pass on according to your wishes.
The assets you include in your trust might be:
- Real estate, including your primary residence and any investment properties
- Bank accounts and investment accounts
- Life insurance
- Business interests
- Personal property, such as vehicles, jewelry, art, or family heirlooms
4. Choose your beneficiaries
Your beneficiaries are the people who will ultimately receive the assets in your trust. This may include family members, children, grandchildren, friends, and charitable causes close to your heart. Your estate planning attorney can help you think through your options and make sure your decisions are clearly spelled out in your trust.
5. Draft, sign, and notarize the trust document
Once you’ve made these key decisions, it’s time to put them into writing. Your trust document describes exactly how you want your assets to be managed and distributed, helping to protect your wishes and give your family peace of mind.
Specifically, the document must include:
- The name of your trust
- The name of your trustee(s) and successor trustee(s)
- The names of your beneficiaries
- Instructions for how assets should be managed and distributed
- The purpose of the trust, including any special terms or conditions
Important note: DIY trusts can easily be declared invalid or incomplete if they don’t meet Georgia’s legal standards. Working with an experienced estate planning attorney ensures your trust will be valid under Georgia law and tailored to your unique needs.
Finally, you’ll need to formally sign and notarize your trust document to ensure the trust is legally binding in Georgia. Many banks and financial institutions will not recognize an unnotarized trust, so notarization helps prevent disputes or legal challenges.
6. Fund your trust by transferring your assets
Funding your trust is one of the most important (and frequently overlooked) steps. Until you transfer assets into your trust, it can’t do its job. Think of it like opening a bank account; if you don’t deposit money, it won’t do you any good. Your attorney can help you navigate this process and ensure your trust is properly funded.
How to transfer assets into a trust:
- Real estate: Transfer ownership via a recorded deed into the name of your trust. In Georgia, if you transfer real property into a trust, you must execute a new deed and record it with the appropriate county clerk. Your attorney can help with this process.
- Bank and investment accounts: Change account ownership to the trust, or list the trust as a payable-on-death (POD) beneficiary.
- Life insurance and retirement accounts: Use beneficiary designations where appropriate. (Your attorney can advise on whether to name the trust or individuals.)
- Business interests and personal property: Use an assignment of assets or other appropriate legal forms to document a formal transfer.
7. Store your trust documents safely and keep them up to date
This last step is critical, so don’t skip it. Once your trust is complete and funded, tell your attorney and trusted family members where to find it. Secure storage locations might include a fireproof safe, a safe deposit box, or secure cloud storage. Provide copies to your trustee(s), successor trustee(s), and estate planning attorney.
Depending on your family circumstances, this may be a good time to notify beneficiaries about the trust (including where the original copies are located) and their rights. Discussing the trust gives you an opportunity to explain your intentions and answer any questions that may arise. But proceed with caution if you’ve opted for a revocable trust, as you might choose to alter beneficiary asset allocations later on.
And remember: life changes. Review your trust periodically—especially after major life events—to make sure it reflects your current wishes and protects the people you love.
Frequently asked questions about creating a trust in Georgia
What’s the biggest mistake parents make when setting up a trust?
- Failing to fund the trust: Without funding, your trust can’t help you achieve your goals or protect the interests of your children.
- Naming an inappropriate trustee: Choose someone responsible, willing, and capable of managing your trust and protecting your beneficiaries.
- Not updating your trust: Review after major life changes to ensure that your children are provided for and protected.
- Attempting to DIY a complex trust: Working with an experienced attorney ensures that your trust is valid under Georgia state law and will protect your interests.
What are the requirements for setting up a trust in Georgia?
You’ll find more detail in the 7 steps outlined above—but broadly, you need to:
- Choose your trust type
- Name a trustee and beneficiaries
- Draft, sign, and notarize a written trust document
- Fund the trust by transferring assets
Can you set up a trust without an attorney in Georgia?
Technically, yes—but I’d never recommend it. Trust law is complex, and Georgia’s trust code allows for a level of customization that most generic online templates aren’t prepared for. A poorly drafted trust can cause legal headaches, trigger unintended tax consequences, or fail to accomplish your goals (such as keeping your estate out of probate).
Protect your family and your legacy with a Georgia trust
Setting up a trust in Georgia can be one of the most effective ways to protect your loved ones, avoid probate, and maintain your privacy. But getting it right requires careful planning and execution.
By following these 7 steps and working with an experienced estate planning attorney, you can create a trust that ensures your wishes are honored and your family is cared for.
Ready to take this important step? Click here to schedule your estate planning strategy session.