Trusts Questions

motoman247

Well-Known Member
Supporting Member
Joined
Feb 15, 2017
Messages
525
Location
Lee County, NC
Rating - 100%
13   0   0
Who do y'all recommend to get a trust setup through? Looking to start buying a .22 can and at least another one sometime during the summer or soon after?

Definitely want to do the trust route to get my wife and possibly my father on it as well to makes things easier.
 
I went the DIY route using Quicken Willmaker. I spent a fair amount of time doing my homework to ensure I didn’t mess anything up, maybe 15hr, but I enjoy learning new things. Total cost was like $20 plus my time.
 
I have an LLC, which is inactive; I am the only member. It's all registered and current with the Secretary of State. Since I am not using the LLC for a business as originally envisioned, I was thinking of dissolving it - but it occurred to me that there might be a firearm-related benefit to keeping it alive.

Does anyone here know if the LLC could serve as a de facto trust for the purpose of firearm ownership? In other words, could I transfer ownership of my firearms to the LLC in order to (a) minimize personal liability, and (b) avoid probate upon my death, to facilitate liquidation of the firearms by my spouse? I don't have any NFA items (but have thought about a can); I'm really just asking about the 'normal' firearms.

I know, ask a lawyer. That's what I'll do if no joy here, but I thought I'd ask if any of you have already looked into this or even done it.
 
Historically corporations have owned NFA items. Since an LLC is a corporation, I would think that it could own.

Best to consult an NFA attorney though.
 
An LLC works, but you have to keep up with all the annual filings and taxes. It’s less work to create a trust than it is to do the work for one year for an LLC.

Neither structure does much at all meet your stated goals of reducing personal liability (for what?) and simplifying probate (for your wife who owns your firearms anyway).

If you contribute the assets to the LLC you then need to pay business personal property tax on them, and when you sell you get to record the taxable gain or loss.

If you can make a business out of it, like gun rental, so you can depreciate everything against current income, then a business structure makes sense, otherwise personal/joint ownership or a trust is much easier.
 
Back
Top Bottom