When someone decides to engage in estate planning, the person is likely familiar with the general concept of a last will and testament. Exploring estate planning options may uncover the importance of a power of attorney and health care proxy document. Others may discover the value of devising a trust under Indiana law. One unique type of trust is a firearms trust, a legal entity that gun owners and enthusiasts may find valuable.
Fundamental points about firearms trusts
When someone chooses to set up a trust instead of a will, they typically do so with specific intentions. With a trust, assets become managed by a trustee per the directives of the person who created the trust. The arrangement allows a deceased person to gain greater management capabilities over the assets even after passing away. A trust may also help assets transfer to someone outside of probate. A firearms trust follows a somewhat similar path, as it exists to handle the estate planners’ decisions about firearms concerning beneficiaries.
One benefit to setting up a firearms trust is the ability to pass a gun collection to an heir without dealing with bureaucratic rules. Others may use a firearms trust to purchase guns, as the rules for acquiring guns via a trust could be preferable to those for individuals.
Laws regarding gun trusts
Estate planners might be unfamiliar with the rules, laws and regulations surrounding trusts. Some may be unaware that firearms trusts can accept not only guns as assets but also money. So, an estate planner could direct funds into the trust so beneficiaries may purchase firearms with cash from the trust.
Laws and rules regarding firearm trusts are subject to change. Federal regulations could make purchasing firearms via a trust more difficult if imposed. Anyone considering crafting such a trust would likely benefit from reviewing current laws regulating firearms trusts.