Asset Protection in Georgia: Exemptions, LLC Interests and Trusts
Georgia's statutory exemptions are small in dollar terms, so most protection comes from how assets are owned and when the planning is done. Georgia's LLC Act does not make the charging order the exclusive remedy against a member's interest, and creditors can reach what a trust could distribute to the person who funded it.
We have no Georgia office. Aaron Bedy, Of Counsel, is admitted in Georgia and in Florida; his listed practice areas are estate planning and real estate law.
What Georgia protects, and where the protection ends
Outside bankruptcy, O.C.G.A. 44-13-1 exempts $5,000 of property from levy, or $21,500 for a primary residence, and never against taxes, purchase money, labor, materials or removal of encumbrances. In bankruptcy, Georgia has opted out of the federal list and substitutes 44-13-100, which includes up to $21,500 in a residence, funds held in retirement or pension plans, IRAs, and unmatured life insurance contracts. You must have been domiciled in Georgia for the 180 days before filing, or longer than anywhere else, to use it.
Under 14-11-504 a charging order is not the creditor's exclusive remedy; a creditor can also garnish distributions. The statute does limit leverage: unless the articles or a written operating agreement say otherwise, a judgment creditor cannot interfere with management, force dissolution, or obtain a foreclosure sale of the interest.
Property in a revocable trust is subject to the settlor's creditors during life (53-12-82). For an irrevocable trust, the settlor's creditors can reach the maximum amount that could be distributed to or for the settlor, and a spendthrift clause is invalid against a beneficiary-contributor to the extent of the contribution (53-12-80, 53-12-82). For a trust funded by someone else, a spendthrift clause works, with exceptions for alimony, child support, taxes and tort judgments. Timing governs everything: a transfer is voidable if made with intent to hinder, delay or defraud, and the Code lists badges such as transfers to insiders, retained control, or a transfer after the debtor was sued or threatened with suit (18-2-74).
Exemption and Titling Review
We map which assets already sit inside 44-13-1 or 44-13-100, then adjust titling and entity ownership.
LLC and Holding Structures
Operating agreements drafted around the 14-11-504 rule, so distributions and transfer restrictions are set by contract.
Third-Party Trusts and Transfer Review
Spendthrift trusts drafted to bar voluntary and involuntary transfers (53-12-80), and a test of any planned transfer against 18-2-74 before it is made.
How much of my home can a creditor reach in Georgia?
Outside bankruptcy, a primary residence is exempt from levy up to $21,500 (44-13-1). The exemption does not apply against taxes, purchase money, labor or materials, or encumbrance removal. In bankruptcy, 44-13-100 also allows up to $21,500 in a residence.
Does a Georgia LLC protect my rental property from my personal creditors?
In part. The LLC keeps its own creditors away from you, but your creditors can charge or garnish your membership interest (14-11-504). Absent contrary terms in the articles or operating agreement, they cannot manage the LLC, force dissolution or force a sale of the interest.
Can I set up an asset protection trust for myself in Georgia?
Not one that defeats your creditors. If you can receive distributions, creditors can reach the maximum amount distributable to or for you (53-12-82), and a spendthrift clause is invalid against you to the extent of your contribution (53-12-80).
How long after a transfer can a creditor undo it?
For actual-intent claims, 4 years after the transfer or, if later, 1 year after it was or could reasonably have been discovered (18-2-79). Claims based on lack of reasonably equivalent value run 4 years, or 1 year for the insider-preference claim.
Facing an asset protection question in Georgia?
The first consultation is confidential, and we respond within one business day. Tell us what you own and what worries you, and we will tell you which Georgia rules apply.