Michigan Estate Planning Blog

Trust Your NFA Guns to a Gun Trust Saginaw, Michigan

The nation is engaged in an ongoing debate regarding the role of guns in free and civil society. As a result, there is a renewed incentive for Second Amendment supporters to employ a very special tool in their estate planning: the gun trust. Whether owned for sport, collection, or protection – or the sheer aesthetics of the craftsmanship - firearms cannot be passed from generation to generation like any old trinket without some special planning. Enter the “gun trust,” which can provide just the right silver bullet for that special planning. Gun trusts are not new. However, they can be a solid way to hedge your bets with the specter of restrictive gun laws in the future. A recent article in Yahoo! News examined this topic recently in an article titled “Amid National Gun Debate, Existing Laws Force Collectors to Turn to Trusts.” Generally speaking, firearms are a controlled kind of object. Accordingly, passing down the family silver is not going to be the same as passing down a controlled weapon. Without planning you risk running afoul of more than a few laws, but the one that comes to mind is the National Firearms Act (NFA). The penalties include prison time and fines can be severe. Consequently, gun trusts are drafted to comply with the NFA and are referred to as “NFA gun trusts.” If a firearm (or accessory, like a silencer) forms part of your gift to future generations, then there are few tools more important or powerful than the gun trust.  

For more information, see www.jerryreiflawyer.com





Consider A “Gun Trust’ For Your Firearms

Do you have any firearms that are collectible and likely expensive? Do you have any firearms that are subject to federal regulations on ownership and use? If yes, then careful planning may be required to avoid running afoul of tax and regulatory laws upon your incapacity or death. Planning to give away your estate property is often about understanding your loved ones and family members, but proper planning is also about understanding the assets you are giving and the snares to avoid. You own different assets in accordance with different laws, so you must take these elements into consideration when giving them away. Many firearm owners take great pride in their collection and also hope to pass them along to their loved ones. Failing to plan for the legal ownership transfer, however, can result in accidentally triggering illegal transfers. Accordingly, if you own a firearm or even a firearm collection you plan to leave to family or loved ones, then a “gun trust” may be in order. A recent article in AmmoLand, titled A New Breed of Gun Trusts – Protecting Firearms Collectors & Their Collections, makes this point very clearly. A properly written gun trust can skirt tax and regulatory pitfalls. When drafted correctly, trusts are very powerful and specially-tailored legal tools for giving all sorts of unique assets.

Reference: AmmoLand (April 30, 2012) A New Breed of Gun Trusts – Protecting Firearms Collectors & Their Collections