...First of all, is it even legal for a FFL dealer to setup a trust for you? Secondly, doesnt the trust have to be notarized? I was under the impression that only people licensed to practice law or you, yourself could draft up your own legal trust . .....
First, yes, only a lawyer properly licensed to practice law in a particular jurisdiction can practice law. But someone giving you a document and telling you this is a trust document, isn't necessarily practicing law. Now where the practice of law comes in is when someone draws up a legal document
for you having assessed your needs and goals and then represents to you that he believes what he has prepared will satisfy your needs and goals.
There are all sorts of form documents -- trusts, deeds, powers of attorney, wills, etc., -- floating around in cyberspace. Go on-line, print one out, fill in the blanks, and you're all set. Or are you? Will it serve your needs? Will it accomplish what you want accomplished? Given your family situation? Given your financial situation? Given your tax situation? Maybe and maybe not.
So if someone other than a licensed lawyer does anything more than hand you a form, he's practicing law illegally. If you use that document, I think you're taking a big risk that it won't do what you want. It's still "legal", i. e., peoples' rights and obligations will be decided by a court in accordance with what's written there; but the outcome might not be what you hoped for.
As far as being notarized, in general trust documents don't need to be notarized -- although there might a law in some State that requires some type of trust to be notarized.
I have my suits and shirts made for me by a tailor according to my measurement so they fit properly. Similarly, I have my legal documents prepared by qualified lawyers after consulting with me about my situation, needs, and goals -- so that they fit properly. I know that a lot of people can get along perfectly well with clothing bought "off-the-rack." But with legal documents too much is usually at stake to rely on "off-the-rack" forms.