What are Settlors?
The settlor is the person who forms the trust and, normally, who transfers the property to the trust. For those reasons, the settlor decides what the trust will do with the trust property. Ultimately, the settlor causes all the provisions in the trust agreement to be effective when signed and accepted by the trustee. If there is ever any question about what the trust should do, the general principle is to carry out the intentions of the settlor.
Who are the Trustees and what roles to they have?
The trustees are the persons who control, possess, and preserve the trust property for the benefit of the beneficiaries. Generally, the trust also authorizes the trustees to take any other lawful action, including selling and transferring trust property. In the context of firearm trusts, the trustees may lawfully possess trust property, including Title II firearms (NFA firearms). Trustees are considered “responsible persons” and must comply with the rules regarding transferring and making Title II firearms.
With a traditional trust formed to hold financial assets, the trustees serve solely for the benefit of thebeneficiaries. They accept their position as trustees with the understanding that they will be held responsible for those decisions. There are also successor trustees, who only take office if another trustee ceases to serve in that capacity.
A Title II firearm owned by and registered to an individual may not be borrowed by another person. Often, Title II firearms are placed under trusts in order to permit multiple trustees to have possession and use of the firearms, with primary possession and decision-making to be maintained by the settlor, who will also act as primary trustee. Traditional trust documents do not have provisions to accomplish this.
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