For users of firearms such as short-barreled rifle or shotguns, silencers or suppressors, and machine guns (Title II firearms), a properly drafted Gun Trust is an effective estate planning technique to own and use Type II firearms. Jason Palmisano discusses the new Gun Trust regulations that will be put into effect in mid-July, where each Trustee of a gun will have to be submit fingerprints, photographs, and a background check, and also notify their local chief law enforcement officer of acquisition of a Type II firearm.
The article begins as follows:
Firearms such as short-barreled rifle or shotguns, silencers or suppressors, and machine guns (i.e., Title II firearms) are regulated by the federal government as to their purchase, transfer and manufacture. Properly drafted Gun Trusts have been an effective estate planning technique to own and use Type II firearms for several reasons, including:
- Every Trustee of a Gun Trust can legally use and operate a Type II firearm, whereas an individual owner of a Title II firearm is the only individual who can use or possess a Title II firearm;
- A Gun Trust protects other persons with access to the firearm from arrest, prosecution, and conviction for possession (or constructive possession); and
- A Gun Trust provides continuity in ownership of the firearms to beneficiaries of the Trust without having to pay transfer taxes, submit additional paperwork to government agencies, or wait for extended periods of time through the probate process.
Read the full article here: New Gun Trust Laws Take Effect July 13, 2016 by Jason Palmisano
Posted by Pooja Shivaprasad, Associate Editor, Wealth Strategies Journal