Do you own any firearms—particularly any which are collectible or 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.
Deciding who gets what after your gone requires understanding of your family and its dynamic. But it can also require understanding your assets and the potential pitfalls to avoid. When you own regulated assets like firearms, this can require some special planning.
Many firearm enthusiasts take pride in their collection and hope to pass it 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 collection that 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.