Benefits Of A Gun Trust In 2021 – Why Use A Gun Trust ?
1. A gun trust affords you more privacy.
One of the benefits of a gun trust is that it affords you more privacy based on the fact that you can legally purchase firearms in the name of the trust. Inform the FFL that you are purchasing as a gun trust and then simply present your trust documentation to the FFL dealer.
The items that you have purchased will be shown as having been transferred to the gun trust and not to you as an individual.
Some FFL dealers have been known to ask for IDs such as drivers license or other forms of government IDs in order to perform background checks on YOU when purchasing as a trust, you do not have to disclose this information.
If your FFL dealer refuses to make a sell to you based on the fact you will not undergo the aggravation of producing an ID or having a background check performed, you may wish to find another FFL dealer.
2. You can place your NFA items into the gun trust.
Items that fall under the guidelines of the National Firearms Act such as suppressors, short barrel shotguns, short barrel rifles etc can be purchased by the trust and the tax stamp that must be obtained and the record of sell will be registered to the gun trust as opposed to your individual name.
3. It can protect your gun collection against personal legal actions against you such as lawsuits or divorce.
If you are ever found to be on the wrong end of a lawsuit or divorce your gun collection will be protected if has been placed within the firearms trust.
Once items are placed in a trust they are no longer considered personal items. The items within the trust are property of the trust.
4. There is no need to probate a firearms trust in event of death.
5. The firearms trust owns the assets placed into it.
All items that are placed within the trust are property of the trust. As an entity unto itself the trust is the rightful owner of its possessions. Items may be transferred into and out of the trust at any given time so long as applicable law is followed.
6. Persons named in the trust (trustees) may use all NFA items or non-NFA items placed in the trust.
People who are named as trustees of the gun trust may have legal access and use of all items that have been placed within the trust. This includes an NFA items that the trust owns.
7. Unlike a corporation or LLC a trust does not have to pay yearly taxes on the assets placed into the trust.
There have been times that individuals have set up corporations or LLCs and purchased firearms as a business entity. One of the downfalls to this is that each and every year you must pay to upkeep you filing fees and or pay corporate taxes based on the assets of the business.
A gun trust does not have to do either of these. A trust is an entity in and unto itself . The only filing fees required are those initial fees it takes to create the trust.
8. You can avoid having to have your CLEO “Chief Law Enforcement Officer “sign off on NFA weapons.
If you purchase NFA items as an individual you must inform the CLEO in your jurisdiction of your ownership of these items. When purchasing these items as a trust the trust is not required by law to inform the CLEO of these purchases.
9. No background check required when purchasing as a firearms trust.
You can purchase firearms and NFA items in the name of the firearms trust. There is no legal requirement for your personal information to be recorded when purchasing a firearm as a gun trust.
10. No annual taxes for a firearms trust.
There is no annual state or registration fees involved with a firearms trust as opposed to a business entity.
11. Firearms trust offers legal protections.
A firearms trust provides legal protection not only for yourself, but also others whom are members of the trust.
12. Firearms confiscation
A gun trust may help you avoid possible restrictions in the future as they pertain to gun transfers, ownership or confiscation by government entities.
13. A trust is great for estate planning
There are many people with huge firearms collections that may only have a minor child as an heir to their estate. In many states minors are not legally allowed to own firearms.
In the event of your death, if the minor child is a member of the trust, the trust can hold these firearms in its possession until the minor child reaches the legal age in their respective state to be able to lawfully be in possession of a firearm. More information on creating a gun trust can be found here.