Q: What is a Revocable Trust?
A Revocable Trust is also known as a living trust or an inter vivos trust. It is a type of legal entity recognized by state law. Other legal entities include corporations and limited liability companies. For a trust to exist, there must be a settlor (sometimes called a grantor), who creates the trust, and trust property, which is entrusted to a trustee for the benefit of a beneficiary.
Q: Why is a trust better than other legal entities?
Other legal entities, such as a corporation, require payment of fees to create them and annual fees and reporting to maintain them. Corporations must often submit their own tax filing even if they have no income. If you ever dissolve the corporation, NFA firearms owned by the corporation must be transferred to a new owner, and each transfer would be taxed.
Q: What if I own NFA guns personally?
One of the greatest dangers of personally owning NFA guns is the legal restriction prohibiting anyone from handling your guns outside your presence. If you ever had an emergency, no one could help you without facing serious legal risks. Under the legal doctrine of constructive possession, no one else may even have the opportunity to gain access to your NFA guns. Practically speaking, this means your spouse would not be allowed to know where you hide the key to your gun cabinet. Also, we believe estate planning is the most overlooked aspect of firearms safety. If anything happens to you, NFA guns could create serious legal problems for loved ones who don't understand the law.
Q: Can I change the people or property in my Trust?
As the Settlor of the Trust (sometimes called 'grantor') you may change, amend, or revoke your Trust, and you may add or remove Trust property. As life evolves and relationships change, your Trust can adapt to your needs.
Q: Will my Trust be valid if I relocate?
The Arsenal Gun Trust™ has been designed to exceed the typical state laws governing trusts nationwide. Also, the variation in states' laws concerning trusts is manageable because most jurisdictions use the Uniform Trust Code as a model for their legislation. When you do relocate, we recommend a review of your legal affairs by a lawyer licensed in your new home state.
Q: How does the Arsenal Gun Trust™ handle my NFA guns when I die?
While the Arsenal Gun Trust™ ensures your wishes concerning inheritance are respected, our document package will also provide guidance to help ensure your guns are handled in a lawful and safe manner. For this reason, we recommend you use the Arsenal Gun Trust™ to provide estate planning for your entire gun collection. The Arsenal Attorneys™ have designed this benefit mindful of your privacy. Your estate planning will not unnecessarily disclose the details of your trust property, and we can help you keep your gun collection out of the probate court system.
Q: How does the Arsenal Gun Trust™ protect me if I am incapacitated?
Through your personal consultation with Arsenal Attorneys™, we will identify others who may lawfully handle your firearms if you are incapacitated, and someone to ensure you are protected. For example, if you're hospitalized with mounting hospital bills, your 'successor trustee' may sell all or some of your trust property to support you. Equally important, your firearms will be safe, and the person(s) protecting your guns will not be at risk of violating the National Firearms Act.
Q: How does the Arsenal Gun Trust™ help me complete BATFE paperwork?
According to BATFE policy, you may use your Arsenal Gun Trust™ to submit BATFE Form 1 to manufacture an NFA gun or Form 4 to purchase one. In doing so, you will not be required to obtain the signature of your local Chief Law Enforcement Officer (CLEO) or to provide your fingerprints and mug shot. When answering the form's request for the 'maker' or 'transferee', you will identify yourself in the capacity of Trustee of your Trust, and you will attach a copy of your Trust. Each day, BATFE approves numerous applications using trusts in this manner.
Q: Do I need a Class 3 license to own NFA guns?
No. A Class 3 license is required for a gun dealer who sells you an NFA gun. If you are eligible to own an NFA gun, you may submit either BATFE Form 1 or 4 to obtain permission from BATFE.
Q: Will the Arsenal Gun Trust™ protect NFA guns I already own?
Many of our clients already own NFA guns, and they transfer their existing NFA guns to their Arsenal Gun Trust™ to enjoy the benefit of the risk management and estate planning offered by our services.
Q: Does the Trust require a separate tax I.D. number and tax filing?
Q: Do I need an attorney?
One of the greatest dangers of using a flawed trust for NFA gun ownership is the possibility of having a false sense of security. When BATFE approves your transfer application, they're not declaring your trust legally valid. In fact, if a gun owner or his heirs later discover his trust was never properly created, BATFE could penalize them for unauthorized ownership of NFA firearms.