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4/22/2019 5:32:20 PM
Posted: 11/20/2008 4:08:27 AM EDT
Im debating weather or not to create 2 trusts, as im buying a suppressor and going the trust route. it got me thinking, should i put my other items in the collection in a trust as well? i already have serial #'s, $value, invoices, who it was purchased from, and when recorded. Just wondering if there are any legal benefits or drawbacks to sticking them in a trust
thanks
Link Posted: 11/20/2008 4:55:28 AM EDT
[Last Edit: 11/20/2008 4:56:46 AM EDT by gopeterson]
Yes. Once you create a trust you give legal rights and benefits to third parties over how the trust is run and what is done with the assets. Because, at least in most states, you cannot be both the sole trustee and the sole beneficiary, some other person must be a beneficiary or a trustee.

Let's suppose you name your wife as a second beneficiary when everything is fine and dandy between the two of you. It may not be that way sometime down the road and now she has legal rights in the trust. There are ways to protect yourself from that potential occurrence, but not necessarily all are effective.

Also, I suspect that at some point the BATFE will start looking underneath the tent on a lot of people's trusts to see whether they really are following the formalities or whether it is just a ruse to get around the CLEO sign off requirement.

ETA: I do a fair amount of litigation related to trusts. It is not pretty when things go bad.
Link Posted: 11/20/2008 7:48:49 AM EDT
+1.

Plus, I'd put my regular, non-regulated firearms in one trust and my other firearms and accessories that are registered with ATF on another. I was going to do just one, but a friend explained to me why two would be better.

I don't put everything on one trust since no one needs to know everything I own. Not even the ATF. Nothing shady going on, it's just a point of privacy.

My two cents.
Link Posted: 11/20/2008 8:25:23 AM EDT
Originally Posted By gopeterson:
Yes. Once you create a trust you give legal rights and benefits to third parties over how the trust is run and what is done with the assets. Because, at least in most states, you cannot be both the sole trustee and the sole beneficiary, some other person must be a beneficiary or a trustee.

Let's suppose you name your wife as a second beneficiary when everything is fine and dandy between the two of you. It may not be that way sometime down the road and now she has legal rights in the trust. There are ways to protect yourself from that potential occurrence, but not necessarily all are effective.

Also, I suspect that at some point the BATFE will start looking underneath the tent on a lot of people's trusts to see whether they really are following the formalities or whether it is just a ruse to get around the CLEO sign off requirement.

ETA: I do a fair amount of litigation related to trusts. It is not pretty when things go bad.


But if it is a revokable trust, you can change the beneficiary whenever you want - right?
Link Posted: 11/20/2008 10:01:35 AM EDT
Originally Posted By Right-to-Bear:
Originally Posted By gopeterson:
Yes. Once you create a trust you give legal rights and benefits to third parties over how the trust is run and what is done with the assets. Because, at least in most states, you cannot be both the sole trustee and the sole beneficiary, some other person must be a beneficiary or a trustee.

Let's suppose you name your wife as a second beneficiary when everything is fine and dandy between the two of you. It may not be that way sometime down the road and now she has legal rights in the trust. There are ways to protect yourself from that potential occurrence, but not necessarily all are effective.

Also, I suspect that at some point the BATFE will start looking underneath the tent on a lot of people's trusts to see whether they really are following the formalities or whether it is just a ruse to get around the CLEO sign off requirement.

ETA: I do a fair amount of litigation related to trusts. It is not pretty when things go bad.


But if it is a revokable trust, you can change the beneficiary whenever you want - right?



Depends on the wording of the Trust. A revocable trust can be revoked unless there is some term in the trust that converts it to an irrevocable trust or by operation of law, e.g. death or incapacity of the settlor.
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