Considerations for Gun Collections

If people want to pass their guns on to those who can appreciate the guns and handle them properly, there are special considerations that do not accompany other types of property. In light of these considerations, one good way to pass guns is to create a special purpose revocable gun trust. The gun owner is the trustee and the beneficiary and then the owner can appoint successor trustees and lifetime and remainder beneficiaries.

There are two main reasons to use a gun trust. First, it makes the transfer of a National Firearms act firearm faster. Otherwise, you would have to obtain approval of your chief law enforcement officer and get other applications approved. Second, a trust allows the owner to provide detailed instructions for the disposition of the guns. 

Gun dealers have trust forms, but that is just a start. A properly written gun trust can avoid costly mistakes under federal and state laws. Certain transfers could constitute criminal conduct.

See Peter J. Reilly, Gun Collections Pose Special Estate Problems, Forbes, Sept. 22, 2011.

Special thanks to Jim Hillhouse (WealthCounsel) for bringing this article to my attention.