What Happens to a Business in Georgia If the Owner Dies Without a Will or Trust?

Ashley Black
12 minutes ago
3 min read

Many business owners assume that if something happens to them, their family will simply “take over.” In Georgia, that is not how the law works.

If a business owner dies without a will or a trust, the business can quickly become tied up in probate court—causing delays, disputes, and sometimes permanent damage to the business itself.

Below is what every Georgia business owner should understand.

The Business Becomes Part of Probate

When there is no will or trust, the owner is considered to have died intestate. Under Georgia law, the owner’s interest in the business becomes part of the probate estate.

This means:

A judge appoints an administrator to handle the estate
The court oversees major decisions
Heirs do not automatically gain control of the business

Probate in Georgia often lasts 12 to 24 months, and during that time the business may struggle to operate normally.

What Happens Depends on the Type of Business

Sole Proprietorship

A sole proprietorship does not legally survive the owner.

Operations often stop immediately
Bank accounts may be frozen
Licenses and contracts may terminate
Assets are sold to pay debts and distribute proceeds

In most cases, the business simply shuts down.

Single-Member LLC

A single-member LLC may continue to exist, but:

The deceased owner’s membership interest goes into probate
Heirs usually receive economic rights only (profits)
Heirs do not automatically receive management authority

Without a strong operating agreement, the LLC may be forced into liquidation or sale.

Multi-Member LLC

For multi-member LLCs:

The deceased owner’s interest passes to heirs as an economic interest
Remaining members usually keep management control
Buyout disputes are common if there is no operating agreement

This is one of the most common sources of business litigation after an owner’s death.

Corporations

When a shareholder dies without a will:

Their shares pass under Georgia intestacy laws
Multiple heirs may suddenly become shareholders
Heirs may be minors, unqualified, or hostile to management

Without a shareholder agreement, this can lead to deadlock or forced sale of the company.

Partnerships

Many Georgia partnerships automatically dissolve upon a partner’s death unless there is an agreement stating otherwise.

The estate is entitled to the value of the deceased partner’s interest, but the business itself may not survive.

Who Inherits the Business Under Georgia Law?

Georgia intestacy law determines who inherits when there is no will:

If there is a spouse and children, they share equally
The spouse never receives more than one-third if there are multiple children
If no spouse or children exist, parents or siblings may inherit

This often results in multiple people owning a single business interest, which creates management paralysis.

Why This Creates Serious Problems

When a business owner dies without a plan:

Bank accounts can be frozen
No one has clear authority to sign contracts
Payroll and vendor payments may be delayed
Court approval may be required to sell or continue the business
Business value can decline rapidly

The administrator’s job is to preserve value—not to grow or strategically operate the business.

The Bottom Line

Dying without a will or trust doesn’t just impact your family—it can cripple your business.

Without proper planning:

The court controls succession
Heirs inherit confusion instead of clarity
Businesses are often sold, dissolved, or damaged beyond repair

A properly drafted will, trust, and business succession plan can prevent nearly all of these issues.

If you are a Georgia business owner, estate planning is not optional—it is essential protection for everything you’ve built.

Ready to Protect Your Business?

If you own a business in Georgia and do not have a will, trust, or business succession plan, now is the time to act—before the court is forced to make decisions for you.

Our firm helps business owners: