Trust for NON-NFA weapons

[theJanitor]

I live in a state where NFA items are not allowed, but I'm pondering forming a trust anyway (for wife, brother, myself). am I crazy?

[markm]

am I crazy?

Yes!!!

[Hydguy]

Yes is pretty broad.

What you have to consider is the value of the collection, and how it can be affected if you were to pass, and whether or not there is the possibility of offspring that could later be added to the trust.

Even a trust geared towards firearms can still be used for other assets, so again, it really depends.

For me, a trust for non NFA would be a waste of money. But seeing as how I have a few NFA items, and the trust, I could, if I wanted to, transfer ownership of other high value items into the trust to protect them in case I unexpectedly pass.

[docsherm]

I live in a state where NFA items are not allowed, but I'm pondering forming a trust anyway (for wife, brother, myself). am I crazy?

No, Contact a Lawyer that understands these things and they can explain the entire thing. There is more to a firearm trust than just the NFA. If you do get one and want a NFA item later on if you move to a free State, you can use it for that also. Get your info from people that know what they are talking.

[theJanitor]

Yes!!!

If my state were to implement requirements like CLEO signatures and such for "regular" firearms, would the answer still be yes?

I'm looking to add as many layers of protection to my current "collection", and try to increase my chances for future acquisitions, if regulations get alot tighter. Then there's the topic of ensuring my infant son can "inherit" my stuff.

Since we don't have NFA items here, we don't have a large resource for NFA-experienced lawyers, nor do we have peers with experience in this topic.

thanks for the insight guys,

Kent

[eodinert]

No one can answer questions about laws that haven't been passed yet.

A lot of people put things worth money into trusts, sometimes for tax reasons, sometimes because they're getting sued and they don't want to 'own' an item (so it can't be taken), or sometimes they're just trying to prepare for the inevitable.

The more your stuff is worth, the more it makes sense to do estate planning.

[Kissel]

You might also think about a potential future prohibition on non-NFA transfers.

[theJanitor]

You might also think about a potential future prohibition on non-NFA transfers.

This is one of my main concerns. Some of the legislation proposed this year looked to prohibit passing down firearms to my child. I would hope that having those items in a trust beforehand might offer some protection

[why1504]

It depends on the value of the assets you plan to place in the trust. If you have an asset of significant value there can be tax advantages (not always).

As stated, trusts are legal entities closely aligned to businesses. Should laws pass prohibiting transfers and possibly ownership a trust would offer additional protections.

In both of these cases , it would depend on how the laws are structured. Although I am not an accountant or an attorney I have dealt with several trusts. The other key here is it also depends on how the trust is structured. A properly established trust which you want to be multigenerational is going to be expensive to have the documents drafted and can be expensive to maintain.

I strongly suggest you speak with a couple of attorneys who specialize in trusts in general and specifically gun trusts.

[MJN99999]

You have some good advice so far on trusts and I can't add much...

I WILL add that not only should you speak with an attorney about the specifics of any trust, you should also speak with your insurance agent if you choose that route (I did and strongly recommend it).

Given that you would no longer own anything that is/becomes the property of the trust...e.g., any firearm owned by the trust...there are insurance concerns that need to be addressed.

In my case, the specific trust is listed as an 'additionally insured' on all insurance policies related to any property owned by that trust. With that simple, no-cost addition the property is still insured as if I still owned it.


MikeN