What is a Trust and what is it used for?
Trusts are commonly used in the estate planning process. A trust is a legal arrangement that separates the right to control assets from the right to receive the benefits from those assets. In other words, one person controls the assets for the benefit of another person. The obvious example is a child who inherits significant assets – normally a responsible adult will control the assets for the child’s benefit.
Trusts can be revocable (able to be cancelled or amended) or irrevocable (set in stone once formed). Making a trust revocable or irrevocable has legal and/or tax consequences.
You will receive a complete package of documents to use whether you own one firearm or multiple firearms, including NFA firearms. We also include current ATF Forms and additional information on firearm laws and safety.
Basics of a Firearm Trust
1. Transfers the trust property from the settlor(s) to the trustees.
2. Establishes the powers held by the trustees over the trust property. At a minimum, the trustplaces the trustees in charge of storing, preserving, and administering the trust property.Normally, the settlors are also appointed as trustees.
3. Requires the trustees to distribute the trust property to the beneficiaries after the appropriate form has been submitted to and approved by the ATF.
Why are firearm trusts so complicated?
Firearm trusts, especially trusts holding NFA firearms, can pose significant problems for all parties involved. Not only must trustees and beneficiaries comply with state laws for creating and properly maintaining a trust, but the firearm trust must also address the various and equally complicated state and federal laws on firearm ownership, as well as what happens to the trust property upon the death of the settlor. To gain a better understanding of just how complicated this can be, take a look at the following questions which a proper firearm trust should address.
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