To follow on from our earlier discussion of WHY you need a gun trust, here are some additional thoughts and insights you should consider when asking yourself if you need a Gun Trust. Three types of ownership for your Gun Trust…
- Individual Ownership – the simplest structure if personal firearms are involved…Liability risk is borne by the individual…a Gun Trust provides better planning and control, including a legal framework for beneficial transfers.
- For a business or for multiple owners other than married couples – business entity ownership is advisable preferably an LLC. Combining one or more gun trusts as LLC members can provide benefits to non-LLC owners others as trust beneficiaries
- Entity ownership – desirable for NFA firearms as it lessens the risk of an administrative turn-down by local law enforcement at the time of acquisition…Entity ownership provides a structure for lawful use by multiple persons and more
Entity Ownership has some “Pro’s and Con’s” associated with it as well…
- Provides rules or guidelines
- Avoids CLEO signoff for NFA firearms
- Adds some asset protection
- May avoid probate
- Adds expense and annual filings
- Adds complexity
- Business use is often very inconsistent with personal use
Most important…Minimize your Liability with A System! Create a Gun Trust entity, get some education, and maintain your firearms.