Firearms in a Family Trust

[Huskerguy]

We just recently started a Trust and in the process of getting everything put into the Trust. A friend said he was told the best way to transfer firearms was to put them in the Trust which makes them pass on to whomever you designate.

Sounds good but is it? I have a call in to our attorney to get his input on this as well.

 

[zeke]

They still have to be legally able to own a firearm, but no transfer needed. At least as i understand it. Maybe particularly useful for any stamped items, although may depend on some state prohibitions.

 

[Bladeswitcher]

We just recently started a Trust and in the process of getting everything put into the Trust. A friend said he was told the best way to transfer firearms was to put them in the Trust which makes them pass on to whomever you designate.

Sounds good but is it? I have a call in to our attorney to get his input on this as well.

We're setting up a trust now. I think we were told you can just designate all personal property to go to the trust. You don't need to list specifics. If you want to add an addendum that makes specific directives (Aunt Sue gets the 3" Model 66) you can do that, but it's not necessary.

As I understand it, the one area of firearms where a trust is useful is NFA items like machine guns and silencers. Otherwise, the recipient would have to jump through all the hoops to take possession. Generally, that's going to be a separate trust since you don't usually want to lump your other assets with your machine guns.

 

[Huskerguy]

We're setting up a trust now. I think we were told you can just designate all personal property to go to the trust. You don't need to list specifics. If you want to add an addendum that makes specific directives (Aunt Sue gets the 3" Model 66) you can do that, but it's not necessary.

As I understand it, the one area of firearms where a trust is useful is NFA items like machine guns and silencers. Otherwise, the recipient would have to jump through all the hoops to take possession. Generally, that's going to be a separate trust since you don't usually want to lump your other assets with your machine guns.

I should have been a little more specific. Our trust follows what you are explaining in that all property goes into the trust, thus my two kids without an inventory.

I guess where I wonder a little is since both my children live in a different state, I would be "required" as I understand it, to transfer them a handgun through an FFL but I wouldn't have to do that if they are part of a Trust? So when the day comes, whatever is left is theirs automatically with no strings attached?

 

[wood714]

As I understand it, the one area of firearms where a trust is useful is NFA items like machine guns and silencers. Otherwise, the recipient would have to jump through all the hoops to take possession. Generally, that's going to be a separate trust since you don't usually want to lump your other assets with your machine guns.

All my ATF stamps were done as an individual.

When I bought my first silencer, I thought I was done, but I ended up with a few more stamps, and waiting on another right now.

I was gonna set up a trust, but asked on Silencer Talk about what would happen to my stuff when I kicked it.

Found out all my daughter has to do is fill a ATF Form 5 along with a death certificate, and she can legally own all my cool stuff tax free. Also since she's the beneficiary of my estate, she can hold on to everything while the stuff is transferred into her name.

No hoops to jump at all.

Tax-Exempt Firearm Transfer: How to Fill ATF Form 5 | PDFfiller Blog

 

[LoboGunLeather]

All my ATF stamps were done as an individual.

When I bought my first silencer, I thought I was done, but I ended up with a few more stamps, and waiting on another right now.

I was gonna set up a trust, but asked on Silencer Talk about what would happen to my stuff when I kicked it.

Found out all my daughter has to do is fill a ATF Form 5 along with a death certificate, and she can legally own all my cool stuff tax free. Also since she's the beneficiary of my estate, she can hold on to everything while the stuff is transferred into her name.

No hoops to jump at all.

Tax-Exempt Firearm Transfer: How to Fill ATF Form 5 | PDFfiller Blog

Exactly. A bequest is not treated in the same manner as a transfer. Non-taxable event.

 

[Jim R]

Get a lawyer have him draw it up. I have helped liquidate a number of estates. You cannot control what is going to happen from the grave. The more you try to control things the harder you are going to make it on the person that is handling your affairs. Get someone you trust talk to them or make out a list, then just leave it alone.
If someone comes in and empties our house and bank accounts it not going to change the fact that we are dead. If you are worried about who will get what, give it to them now.

 

[Huskerguy]

Get a lawyer have him draw it up. I have helped liquidate a number of estates. You cannot control what is going to happen from the grave. The more you try to control things the harder you are going to make it on the person that is handling your affairs. Get someone you trust talk to them or make out a list, then just leave it alone.
If someone comes in and empties our house and bank accounts it not going to change the fact that we are dead. If you are worried about who will get what, give it to them now.

The Trust is already completed. It has been done by an attorney friend. The subject of firearms in a Trust came up afterwards. I understand all the estate stuff, that is why we have everything spelled out for both our kids. That is not the issue.

It is my understanding if you "gift" a firearm to a family member, or anyone else for that matter, who is from out of state, it must go through an FFL. I am sure that gets violated often which is again, not the point. If these remain in the Trust along with all the other things that go with the estate, do they escape the provision of needing to do a transfer to take them back to their respective states?

 

[Bladeswitcher]

The Trust is already completed. It has been done by an attorney friend. The subject of firearms in a Trust came up afterwards. I understand all the estate stuff, that is why we have everything spelled out for both our kids. That is not the issue.

It is my understanding if you "gift" a firearm to a family member, or anyone else for that matter, who is from out of state, it must go through an FFL. I am sure that gets violated often which is again, not the point. If these remain in the Trust along with all the other things that go with the estate, do they escape the provision of needing to do a transfer to take them back to their respective states?

This is from the ATF's FAQ page: To whom may an unlicensed person transfer firearms under the GCA? | Bureau of Alcohol, Tobacco, Firearms and Explosives

To whom may an unlicensed person transfer firearms under the GCA?

A person may transfer a firearm to an unlicensed resident of their state, provided the transferor does not know or have reasonable cause to believe the transferee is prohibited from receiving or possessing firearms under federal law. There may be state laws that regulate intrastate firearm transactions. A person considering transferring a firearm should contact their State Attorney General's Office to inquire about the laws and possible state or local restrictions.

Generally, for a person to lawfully transfer a firearm to an unlicensed person who resides out of state, the firearm must be shipped to a federal firearms licensee (FFL) within the transferee's state of residence. The transferee may then receive the firearm from the FFL upon completion of an ATF Form 4473 and a NICS background check.

A person may loan or rent a firearm to a resident of any state for temporary use for lawful sporting purposes, if they do not know or have reasonable cause to believe the person is prohibited from receiving or possessing firearms under federal law. Another exception is provided for transfers of firearms to nonresidents to carry out a lawful bequest or acquisition by intestate succession. This exception would authorize the transfer of a firearm to a nonresident who inherits a firearm under the will of a decedent.

A person may transfer a firearm to a licensee in any state. However, a firearm other than a curio or relic may not be transferred interstate to a licensed collector.

[18 U.S.C 922(a)(5) and 922(d); 27 CFR 478.30, 478.32]