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Posted: 3/28/2009 1:56:35 PM EDT
I have a trust for my class 3 firearms. If I put my other firearms in the trust, can I still trade and sell them as usual? I need to protect them if at all possible.
Link Posted: 3/28/2009 2:07:36 PM EDT
I think you can do exactly what you want. If it's urgent and you've got reason to be concerned, it might be worth the cash to talk to an attorney.
Link Posted: 3/28/2009 2:10:58 PM EDT
[Last Edit: 3/28/2009 2:11:29 PM EDT by shawn21]
Yes, but you must take them out of the trust once you sell them/ update the trust to reflect this.
Link Posted: 3/28/2009 2:34:17 PM EDT
[Last Edit: 3/28/2009 2:36:09 PM EDT by P220C]
Call attorney if your protecting them just became urgent for some reason that you prefer not to share.

Remember, that the trust belongs to you, and everything in it does, too. If they can get at your stuff outside the trust, they can get at your stuff within the trust. The corporate veil protection only works in one directon and that is by protecting assets outside the corporation from a lawsuit involving the corporation/lc/trust. Based upon the limited information you have given, I don't think a trust is going to help you.

Think about how and why corporation came into use and it makes more sense. Sending a ship to see was risky business back then, and if people were killed, or cargo lost there was a risk the shipping owner could be liable. If they placed the ship and everything in it into a corporation, and that corporation failed (sunk), well that was it. Sad, yes, but that was it. People could sue the corporation, but they would essentialy be suing a sunken ship.

Alot of people have the corporate veil analogy all wrong. The corp/llc/trust protect you from acts within the corporation, not the other way around. The veil does not protect your assets.

The best analogy I've heard is this one.

You - own dog stylng salon under LLC
Your employee - picks up customer's dog - customers dog through employee negligence bites a child.
Childs parents sue A. your LLC, B. employee for negligence, C. dog owners,


Now lets mix it up
You - own dog styling salon under LLC
You - pick up customer's dog - customers dog through your negligence bites a child.
Childs parents sue A. your LLC, B. you (for your personal)for negligence, C. dog owners,

See, the corporate veil doesn't protect you at all in second situation, because it was you personally who was being sued. So only if the lawsuit is directed at the corporation are you personaly and your assts outside the corporation protected.



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