according to Pew Research, 30 percent of adults in the United States report that they own a firearm. Arms sales have skyrocketed in recent years, especially during the coronavirus pandemic. While many of them reported owning weapons for protection and hunting, 6% of them owned weapons that were a family heirloom.
If you own a firearm that has monetary or sentimental value, you may be wondering how to transfer ownership to your loved ones after your death. In addition to creating a Will, you may want to make special arrangements for your gun.
A gun trust, also known as a firearms trust or an NFA trust, is a legal entity created to hold and manage guns. Establishing a gun trust can help you pass your gun on to your loved ones, protecting them from wills. It can also help you give ownership to multiple individuals.
Understanding trust funds
a trust A legal arrangement whereby the original owner (the grantor) appoints an individual (the beneficiary, or several beneficiaries) to receive the asset. When something is held in trust, the trustee is responsible for its management.
Trusts can protect many types of property CommandmentWhere the court supervises the distribution of the estate. The property a trust can protect includes real estate, bank accounts, and personal property such as a collection of jewelry or weapons.
Some trusts are revocable, which means the grantor can change his mind and terminate the trust. Others are irrevocable, so the person in the trust cannot break up the arrangement. Weapon credits can be cancelable or non-cancellable.
National Firearms Act
Establishing a gun trust can make it easier for gun owners to comply with the National Firearms Act (NFA), especially when several people want to use the gun and when the owner intends to transfer ownership.
Congress passed the NFA in 1938 to limit the sale of firearms. The law places specific requirements and regulations on firearms classified as Title II weapons, which include the following:
- machine guns
- Short-barreled shotguns or rifles (SBSs and SBRs)
- muffler (silencer)
- Destructive devices such as grenades
- Firearms over .50 caliber, in accordance with the Arms Control Act of 1968
the Bureau of Alcohol, Tobacco, Firearms and Explosives Individuals who intend to own an NFA gun are required to complete an application and registration. Registration includes paying the tax and obtaining a tax stamp for each NFA firearm. Those who purchase or own NFA firearms must undergo a background check and submit fingerprints as part of the application process. The office rejects any requests that violate federal, state or local laws.
Benefits of gun crates
Weapon crates have many benefits.
- They avoid the commandment. If you have a gun that you wish to transfer to a specific person or persons, the transfer does not have to be supervised by a court, and it is unlikely that someone will challenge it.
- Trust continues beyond death. You can set up a trust so your loved ones don’t have to pay transfer fees. This makes the transfer of possession easier.
- When creating a gun trust, you can choose multiple beneficiaries. More than one person can own and use a gun.
Establishing a gun trust does not protect trustees from compliance with state, federal, and local gun regulations.
Prior to 2016, only one trustee was required to register, which made the primary advantage of gun trusts being that they allowed multiple trustees to bypass government oversight. However, in 2016, the Legislative Council amended the National Funding Law so that all beneficiaries must undergo registration, eliminating this loophole.
for every Wisconsin bar, the trustees must inform the local chief law enforcement officer of the identities of all trustees and the location of the firearm. They must also provide fingerprints, a photo, and undergo a background check.
Trustees must also be eligible to own firearms. NFA violation is a felony. Criminals, recipients of dishonorable discharge from military service, and persons deemed incapacitated cannot own a gun or be recipients of the Arms Fund.
When trust creators fail to consider whether intended beneficiaries may legally possess a firearm, they open the door to criminal liability for themselves and their loved ones. In creating the trust, the attorney must consider what will happen if the beneficiary loses eligibility to own the gun.
Talk to a lawyer
While some retailers and online sellers offer gun trust forms, working with a qualified attorney is best. The consequences of a mistake can be severe, and the trust must comply with the law. talk with lawyer in your area to learn more about setting up a gun fund as part of your estate plan.
Creation date: 07/27/2023