Any Trust pitfalls? After the fact Shoulda, Coulda Woulda?

IronMonster · Mar 4, 2015

So I know the attorney will steer me right and have all the answers but I am just curious you guys with trusts set up are there things you would have done different? Are there questions I should be asking? Things I need to know?

I have an appointment set up for next week to go talk to Dennis at Northwest Gun Law Group. I actually have more than one agenda. I am hoping that I can have a single legal entity that is both a NFA trust and establishes a chain of ownership for family heirloom firearms. I have family members in at least three states that I want to include in the trust and I may have more than one firearm collecting listed (all family guns, just not all in my possession)

Anyway I figured it did not hurt to ask.

And yes I know you can print out some forms and set up your own trust, Thanks for that but I am happy to pay an attorney for just the peace of mind.

PDXSparky · Mar 4, 2015

The only advice I can offer is to choose a short name for the Trust. If you Form 1 anything, you'll be glad that you'll have less engraving to do. I went with "XYZ" NFA Trust using my initials.

That, and just do it. The sooner you submit your Form 4 paperwork, the sooner it will be approved.

Modeler · Mar 4, 2015

What Sparky said. Keep the trust name short.

robbijer · Mar 5, 2015

I would do the trust for NFA items only. The reasons being are each trustee can have access to the NFA item, and in the future each individual on the trust might need to be fingerprinted and pass background check. Could end up being a big pain especially if they are not in the same state.

Just Jim · Mar 5, 2015

I have heard that the ptb do not like trust and are trying to find ways to stop them. Like the fellow before me said there are going to be regulations added so I would look at down the road if it's going to work for you. Hear stories about ownership issues and who is allowed to handle and shoot the guns. You are smart to get a lawyer, just hope he knows his business.

LimPShoT · Mar 5, 2015

I set up my own trust only cost me $5 to have it notarized. Only thing i would have done differently is have a shorter name.

spectra · Mar 5, 2015

Northwest Law Group is good but you will need a Silver at least to have other people on it. I picked up one of there Bronze ones and no place to pet other people on it. I asked and need to get the Silver to do that

If I would have known that to begin with I would have went another rout.

Post up what you find out if you do not mind.

IronMonster · Mar 5, 2015

When I talked to Dennis on the phone he said I would have to do a modified gold trust to do everything I want. It might be the simpler thing to have two legal entitys rather than one all inclusive one.

PDXSparky · Mar 7, 2015

IronMonster said:
When I talked to Dennis on the phone he said I would have to do a modified gold trust to do everything I want. It might be the simpler thing to have two legal entitys rather than one all inclusive one.

Yep, you want 1 trust for NFA items and a second trust for any other real property.

As far as adding/naming trustees or beneficiaries, you can do that yourself by amending the trust. Add the name of the person(s) you wish to add, initial the change and date it. You can delete people in the same way.

wired · Mar 27, 2015

Ive done 12 NFA items on trust over the last 10 years. 3rd trust in 2 states. Drafted all of them on quicken willmaker 2007. Keep the name short. First one I had my full name plus "revocable living trust" blah blah blah. Worked OK until I did a form 1 silencer and had to engrave all of it. Next trust was my initials + "trust". Lot easier to fit on the receiver on an SBR. In any case quicken does a good job for zero dollars.

The Heretic · Mar 28, 2015

Why would I want a trust for non-NFA items if I just have any and all of my property and finances/etc. in my will simply go to one person (my daughter)? Why would firearms in the state of Oregon need to be listed in a trust?

Wouldn't it be better (from the perspective of future firearms legislation) to just not mention non-NFA firearms anywhere in legal paperwork?

IronMonster · Mar 28, 2015

Because with a trust you can express more control. Like for my family guns it lists a chain of ownership that is 150 years long and dictates what line they are to follow and what happens if someone does not want control of them.

If you give them to your son and at some point he decides he doesn't want them he sells them and its done. With a trust your son might have possession but he does not own them, the trust does. If he does not want them the trust dictates he has to give them to his brother, or his brothers kids or however you have it set up.

Its not fool proof but what I am trying to do is make sure some guns that have already been in the family for close to 100 years continue to get passed down. Protect them from someone in the chain who does not care about them.

The Heretic · Mar 28, 2015

Thanks, my situation is a bit simpler; I only have a daughter and she has a husband who likes guns too.

My daughter gets everything I own and all of my finances. I have made recommendations to her as to what to keep or sell, but whatever she wants to do at that point is pretty much solely up to her and that is the way I want it. I don't want to put restrictions on her because I trust her to make the right decision for her situation.

If I had multiple kids or other heirs I wanted to give my stuff to, then it sounds like a trust would be helpful. But if anything, I will probably be getting more guns from my family rather than giving guns to them; neither of my brothers are as interested in firearms as I am, and none of their kids want them (or in one case I wouldn't trust them to have them) so I am just going to give them to my daughter. She and her husband will probably keep most of them.

I don't have any NFA items - yet. I am thinking of getting some suppressors, at which point I would probably use a trust, but until that point I don't think I need a trust specifically for firearms, maybe one for all of my possessions without specifically mentioning the firearms.