What constitutes possesion of an NFA item

[pjeski]

Just one final clarification: although trusts are a creature of state law, under Kentucky law (and as far as I know every other state), beneficiaries don't have a present right of possession. In order for a person to be protected by a trust (and legally allowed to possess the trust's NFA firearms), they have to be listed as a trustee.

Aaron

This is a good reason to have your trust drawn up by an attorney in your own state familiar with NFA trusts. My trusts are drawn up specifically to allow beneficiaries possession of the NFA items in the trust. A generic trust isn't likely to allow for that.

 

[Ed Ames]

My trusts are drawn up specifically to allow beneficiaries possession of the NFA items in the trust.

Is that desirable?

 

[pjeski]

Yes.

 

[Aaron Baker]

Pjeski is correct--a trust CAN be drafted to allow beneficiaries to have possession. Most generic trusts do not. But some NFA-specific trusts also do not. Mine allow trustees to possess, but not beneficiaries.

Is it desirable for beneficiaries to have a right of possession?

For some people, yes. For others, no. It really depends on your needs and what you want to do with your trust. So, as Pjeski says, it's always good to consult with an attorney in your state rather than just use a generic trust. (And if you're going to use any sort of "template" type trust, at the very least make sure it's an NFA-specific one and that you understand how it works--who can possess and who cannot.)

Aaron

 

[Ed Ames]

Yes.

My beneficiary is a church or 501(c)(3). Does that mean under your trust the membership of the beneficiary could all legally possess trust property?

 

[pjeski]

My beneficiary is a church or 501(c)(3). Does that mean under your trust the membership of the beneficiary could all legally possess trust property?

Not sure. If that situation applied to me, I would ask my attorney. If I had intended for my NFA items to be left to a charitable organization as a contribution, I would have discussed that with him prior to forming the trust. I believe, though I may be wrong, he would have been able to address that.

In your case, is your intention that the church actually end up with the NFA items? Or just the financial benefit of having them?

My trust has an individual named as a residual beneficiary. That particular beneficiary does not have possession rights (yet), and so is listed as a trust beneficiary as well. That would probably be this church or charitable, but again I would have discussed it with my attorney. I would think, but IANAL, that the verbiage of the trust could be made to specifically deal with this.

 

[Ed Ames]

Yeah, I discussed it with the attorney who drew up my trust. However, I didn't have any reason to ask that question.

In my initial planning stages the most obvious beneficiary (most likely to still be alive etc) was a prohibited person (e.g. a 3 year old) so my initial questions surrounded making sure that I wouldn't create accidental felons by dying before plan. Then as I understood more about "doctrine of merger" and what trustees can do in the name of the trust it made more sense (to me) to name what I think of as a a "safety" beneficiary that I'm happy with receiving the value of trust property after liquidation but I don't want to be able to possess. If, upon reaching legal age, the person I first considered as beneficiary is interested in trust property she can be added as a trustee.

However, now I'm curious. If you named the NRA as the beneficiary of your trust could all NRA members, or employees, or officers, or anyone at the NRA legally possess NFA property of your trust?

 

[pjeski]

If you name the United States of America as your beneficiary, (not the government, but the nation), could we all possess them?