Gun trusts an increasingly popular asset protection plan
The state of Utah has a high population of gun owners. In fact, more than 43 percent of the population owns a gun or firearm of some type. Many reasons exist for this high ownership rate, but one common one is Utah's permissive gun laws in comparison to the firearm laws of other states. According to some data, about two thirds of the guns owned in America are owned by less than one third of the nation's gun owners. Gun culture tends to be stronger in the Western United States and Utah is no exception. Many people like to keep their firearms in the family when they pass away — either as gifts or heirlooms. Gun trusts can actually be used as asset protection.
Unlike other possessions or valuables, firearms cannot simply be passed on to someone through a will.
When dealing with common possessions, a trust will generally own the item and the intended inheritor will become the trustee or beneficiary. The inheritor could also receive the asset directly, after taxes are paid. However, guns are not regulated in the same as any other property.
According to the National Firearms Act (NFA), gun transfers and possession are strictly regulated. These laws deny gun ownership to those with a history of mental illness, convicted felons or users of illegal drugs, as well as those convicted of misdemeanor domestic violence offenses. Obviously, this is for the protection of those close to these people as well as the public in general.
When an individual decides to pass on assets like guns or other firearms, the executor should be careful to avoid the violation of these laws. If you transfer a weapon (even accidentally) to an heir, the executor and the heir could become subject to criminal penalties. The weapon appraised could be seized as well. The best way to get protection for your guns and firearms is through a revocable living trust specifically created for the ownership, transfer and possession of weapons. This is also known as an NFA trust or gun trust. One benefit of a gun trust is that they do not require annual filing fees, a separate tax return or public disclosure. In other words, a gun trust is simple and private.
The trust document is carefully written, accounting for various types of guns and can name several trustees. However, if the trust includes a transfer between states, there could be problems. For example, if a resident of Utah leaves his gun collection to his cousin who resides in North Carolina, there must be Bureau of Alcohol, Tobacco, Firearms and Explosives (BATFE) approval — and they must approve the trust before transporting the weapons across state lines. Basically, a gun trust is a document which operates independently but should be used in conjunction with other parts of standard estate planning. If you'd like to have some additional asset protection, creating a gun trust is a good idea.
Unlike other possessions or valuables, firearms cannot simply be passed on to someone through a will.
When dealing with common possessions, a trust will generally own the item and the intended inheritor will become the trustee or beneficiary. The inheritor could also receive the asset directly, after taxes are paid. However, guns are not regulated in the same as any other property.
According to the National Firearms Act (NFA), gun transfers and possession are strictly regulated. These laws deny gun ownership to those with a history of mental illness, convicted felons or users of illegal drugs, as well as those convicted of misdemeanor domestic violence offenses. Obviously, this is for the protection of those close to these people as well as the public in general.
When an individual decides to pass on assets like guns or other firearms, the executor should be careful to avoid the violation of these laws. If you transfer a weapon (even accidentally) to an heir, the executor and the heir could become subject to criminal penalties. The weapon appraised could be seized as well. The best way to get protection for your guns and firearms is through a revocable living trust specifically created for the ownership, transfer and possession of weapons. This is also known as an NFA trust or gun trust. One benefit of a gun trust is that they do not require annual filing fees, a separate tax return or public disclosure. In other words, a gun trust is simple and private.
The trust document is carefully written, accounting for various types of guns and can name several trustees. However, if the trust includes a transfer between states, there could be problems. For example, if a resident of Utah leaves his gun collection to his cousin who resides in North Carolina, there must be Bureau of Alcohol, Tobacco, Firearms and Explosives (BATFE) approval — and they must approve the trust before transporting the weapons across state lines. Basically, a gun trust is a document which operates independently but should be used in conjunction with other parts of standard estate planning. If you'd like to have some additional asset protection, creating a gun trust is a good idea.