What is a Gun Trust?
Understanding Gun Trusts requires a working knowledge of Trusts in general and how they operate. A Trust is an arrangement under which one person, referred to as a “Trustee,” holds legal title to property for another person, called a beneficiary. Arkansas allows individuals to be the Trustee of their own Trust, keeping full control over all property held in the Trust. A Gun Trust is a type of Trust that is set up to hold legal title over firearms and assist with their distribution upon the death of the Trustee.
Why do People use Irrevocable Gun Trusts?
Irrevocable Trusts are Estate Planning tools that are used by individuals who are seeking to shield certain assets from creditors. After an Irrevocable Trust is created, its terms cannot be changed by the Grantor. With legislation pending that could affect the ability of individuals to transfer certain types of firearms, many gun enthusiasts are looking for ways to ensure that their children and grandchildren can enjoy the same Second Amendment freedoms that they did. If this is a concern of yours, you should consider creating an Irrevocable Family Firearm Protection Trust.
When creating an Irrevocable Family Firearm Protection Trust, a Grantor establishes the Trust and transfers his firearms into the Trust. The Grantor’s children and/or grandchildren are then set up as beneficiaries of the Trust. After the Grantor passes away, the Trust does not hand down the firearms to the next generation, but instead continues to hold ownership of the firearms as long as Arkansas allows. This way, there is no “transfer” of a firearm after the death of the Grantor, and his heirs will continue to enjoy the firearms after his death as successor Trustees of the Irrevocable Trust, even if a ban on the transfer of certain firearms owned by the Trust has been passed by Congress.
The Advantages of an Irrevocable Family Firearm Protection Trust Include:
- Protecting Firearms from Creditors and Lawsuits
- Protecting Firearms from potential bans on the transfers of certain firearms
- Protecting Second Amendment Rights for future generations
- Avoiding Probate and passing down firearms in private with no court involvement
- Prohibiting beneficiaries who cannot or should not own firearms from breaking the law
What is a Revocable NFA Trust?
A Revocable NFA Trust is a Trust that is used to purchase Title II weapons. The advantages of purchasing Title II weapons in a Trust, as opposed to purchasing them as an individual are numerous. First, you may create an NFA Trust with multiple Trustees, and all Trustees are able to lawfully possess NFA firearms during your lifetime. In addition, when NFA firearms are purchased through a Trust, there is no need to send in pictures, fingerprints, or have the Chief Law Enforcement Officer (CLEO) of your County sign off on your application. Also, there are no yearly fees with an NFA Trust and at your death, all assets are transferred to your beneficiaries outside of a probate court, so all of your assets will remain private.
The Advantages of a Revocable NFA Gun Trust Include:
- Ability to purchase, sell, trade, hold and transfer Title II firearms, weapons and suppressors.
- More than one individual may possess and use Title II firearms, weapons and suppressors held in the Gun Trust.
- No fingerprints required.
- No signature or approval of Chief Legal Enforcement Officer required (“CLEO”).
- No personal photograph required.
- Privacy – CLEO does not know you are applying for ownership of a Title II firearm, weapon or suppressor.
- Ability to transfer firearms, weapons and suppressors upon your death without Court involvement
- Flexibility of amending trust to include additional authorized users and future acquired NFA firearms, weapons and suppressors
Contact us today about setting up a gun trust for your estate plan!