“Estate Planning Today” Series: Should I include these things as part of my Estate Plan?
Published: Tue, 05/14/13
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Evan Farr's Elder Law and Estate Planning News |
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"Estate Planning Today" Series: Should I include these things as part of my Estate Plan?
 Our lives and technology are changing faster than ever and our estate plans need to keep up with these changes. This series will look at things that may not have been addressed or asked about in the estate planning process 5-10 years ago, but are important to many families today. These things include firearms, digital assets, planning for pets, and life planning. There are trusts and other strategies available for these things, but what are the advantages and disadvantages of including them as part of your estate plan? Certain items, such as firearms, cannot simply be left to others in the same way that you would leave other property. They are subject to strict regulations that you may not have accounted for in your Will or Trust. Part I will focus on "Estate Planning for Firearms Owners", and whether or not firearms owners should include their guns as part of their estate plans and how to do so. Part 1: Estate Planning for Firearms Owners Passing firearms in an estate is much different from passing on other personal property. The National Firearms Act (NFA) very strictly regulates the possession and transfer of firearms. In addition, states and even local jurisdictions have an array of firearms transfer rules that must be followed. Under the NFA, there are some commonly-known restrictions. For example, people convicted of felonies, domestic violence, or drug trafficking and those who are mentally ill are not allowed to own firearms. Less commonly known is that dishonorably discharged veterans and persons who have renounced their U.S. citizenship are also not allowed to own firearms. If an executor follows instructions in a Will that directs the distribution of firearms to people in the categories above, the executor is violating the NFA and may be subject to criminal and civil penalties. Even more nerve-wracking is that merely having a firearms appraised can cause its seizure. Because of this, bequeathing firearms in a Will is not a prudent way to plan. A better choice for transferring firearms is to use a Revocable Living Trust (RLT) designed specifically for the transfer, ownership, and possession of guns. Many estate planning attorneys call these "NFA" trusts or "Gun Trusts." Using a "Gun Trust" can avoid or minimize many of the challenges of passing on firearms. It is essential that you meet with an Attorney experienced in these matters, such as Evan H. Farr, CELA, to set up a "Gun Trust" or any of the trusts described in this series. The following are things to keep in mind when it comes to setting up a "Gun Trust":
There are many other potentially serious unintended consequences to transferring firearms to a revocable trust, including the additional liability the successor trustee takes on when attempting to follow the required legal procedures for seeking ATF approval for distributing the gun to the trust beneficiaries. Again, it is important to obtain competent legal representation in order to avoid these unforeseen hazards. Firearms are unique assets that require an estate plan to be uniquely tailored to deal with them. If you already have an estate plan and long-term care plan, call the Fairfax Elder Law Firm of Evan H. Farr, P.C. to review and update your plan accordingly. Ask about The Farr Law Firm's Lifetime Protection Program, which ensures that your documents are properly reviewed and updated as needed, so that they will have maximum effect at law. If you don't have an estate plan or long-term care plan, now is the time to get started. Call us today at 703-691-1888 to set up an appointment for a no-cost consultation. |
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