First and foremost, I realize that web-boards isn’t a place for legal advice. Nonetheless, maybe somebody has a personal experience with question in hands. I am considering to set up a revocable living trust for purposes of real estate purchase. Can the same trust be used for a purchase of NFA items?
Yes. A trust can own real estate and firearms.
If the trust were only for NFA gadgetry I personally don’t find a lawyer necessary… at least in my state. But if you’re talking real assets, you might consider working with a Lawyer.
Agree 100%. PERFECT answers!
Thank you. Yes, I’d go through an attorney given real estate nature. I was just wondering if there were any specifics relevant to NFA trust vs. regular trust.
No. Nothing makes a trust specific to NFA.
I just had my trust done and as said above none of the wording makes it specific to NFA items except the last page which has the “Schedule of Firearms Property” where you would list your Title 2 weapons.
I paid a lawyer to draft mine because I like to worry a lot and I got a fair price from him.
Aside from being like 50 pages long, the only NFA specific type stuff in it was some stuff about use of the items, depreciation, etc and some paragraphs about state and local law with regards to the successor of the trust.
Keep in mind that there is some funny legal territory if your living trust becomes subject to any criminal or civil litigation involved with something on the real estate side of the house for that particular trust (i.e. failing to check for properly cleared title, leans filed, property tax disputes, etc…).
If I understand it correctly, the assets listed in the living trust will often (depending on your state) be listed as owned by the trust and are liable to lawsuits against the trust.
I’d use two separate trusts if it were me, but I’m extra paranoid about my NFA stuff.
I’d set up a separate trust for the NFA stuff (actually, I did). You only have to do it once and can dump any and all future NFA in there. Plus it provides better asset segregation should something go south. Plus, you can put instructions to the successor trustee in the NFA trust that will help avoid any illegal transfers of NFA items that wouldn’t be included in a standard trust.