Back again for your monthly infusion of legal wisdom, delivered like no other law firm...
Guns and gun ownership are a hot topic right now so without getting controversial, let's focus on what we all agree upon.
We all agree that firearms must be handled wisely. But you may not know that the idea of handling your firearms wisely concerns your estate planning as well as gun safety training, gun storage, etc.
This brings us to the topic of the NFA Gun Trust. Essentially, NFA refers to the National Firearms Act which was passed by in 1934 and gave the Congress an authority to tax firearms but had an underlying purpose unrelated to revenue collection which was to curtail, if not prohibit, transactions in certain types of NFA firearms. A $200.00 tax on the making and transfer of certain firearms was considered quite severe and adequate to carry out Congress' purpose to discourage or eliminate transactions in these firearms, also known as Title 2 Firearms or Class 3 Firearms. The NFA has undergone a couple of amendments since 1934 but the basic provisions (including the $200.00 tax) have never changed.
So what is the purpose of an NFA Gun Trust? Simply put, NFA Gun Trusts are an alternative to registering the guns in the individual's name and offer a few advantages. The idea is that the trust is the registered owner for NFA purposes (and anyone else in it). Anyone listed in the trust as trustee may legally possess the guns as trust property. A grantor sets up the trust and may name anyone over age 18 as trustee. The grantor may also list as many beneficiaries as he or she likes and there is no age requirement under Federal law to be a beneficiary.
The advantages of a Gun Trust are that they are set up to be very flexible as to who owns the guns. Most Gun Trusts are established as a revocable living trust and thus the trustees, the beneficiaries and the gun ownership may be changed as long as the grantor has capacity.
The key is that the NFA Gun Trust may be a Living Trust that is the registered owner of the guns and this preserves maximum flexibility and assures the easy passage of the guns to the beneficiaries. Another key is that the Gun Trust ensures family privacy as does any other revocable living trust.
Anyhoo, just another shot across the bow:)
Until next time friends...
