Best State for NFA Trust?

[JayC]

It's my understanding that trusts have a limited lifespan...  And that in certain states have different length of trusts...  So does the state you form your NFA trust in make a difference?

 

Normally I'd say no, but with a possible AWB that includes no more transferring of firearms, would a NFA trust that lasted 200-300 years not be the right way to go?

[2.ooohhh]

Our trust is set up in Oregon, as it was apparently slightly better for our purpose then originating in TN and way better than if it originated in FL. I will say that aside from a few NFA items the trust was set up with the intention of managing ownership of rental property in those states so firearms were not the only things that our attorney considered (state property tax assessment method was a pretty big factor IIRC). If you are only setting up a trust for NFA items the states may stack up differently, but I would certainly advise that you seek the advise of a competent attorney. 

 

 

I will say that transferring an item from the trust was MUCH easier than getting the items into the trust from my name after I inherited them. (I inherited a pile of NFA items while I was not old enough to legally receive them, It made for some interesting paperwork apparently) :stunned:

Edited December 31, 2012 by 2.ooohhh

[JayC]

Again, my concern is with a possible AWB making semi-autos NFA items...  I'd want to find a state where the NFA trust could last well after myself and my children are long and gone...  My understanding is that certain states have different laws regarding how long a trust can last.

 

My question is which state that would allow NFA items (obviously CA wouldn't work), would allow the trust to last the longest period of time.

 

I'd clearly find a good attorney in the state, but it would be helpful to figure out which states would be best to look.

 

Our trust is set up in Oregon, as it was apparently slightly better for our purpose then originating in TN and way better than if it originated in FL. I will say that aside from a few NFA items the trust was set up with the intention of managing ownership of rental property in those states so firearms were not the only things that our attorney considered (state property tax assessment method was a pretty big factor IIRC). If you are only setting up a trust for NFA items the states may stack up differently, but I would certainly advise that you seek the advise of a competent attorney. 

 

 

I will say that transferring an item from the trust was MUCH easier than getting the items into the trust from my name after I inherited them. (I inherited a pile of NFA items while I was not old enough to legally receive them, It made for some interesting paperwork apparently) :stunned:

Edited December 31, 2012 by JayC

[2.ooohhh]

Let me condense and clarify my previous post to make it a little clearer.

 

 

If you are setting up a trust for NFA items I would certainly advise that you seek the advise of a competent attorney. 

 

<- that includes asking your attorney to advise you where it is most beneficial to set up the trust to best meet your goals.

 

 

If your attorney advises you improperly and bad things happen they can be held accountable, if I tell you to form a trust in Deleware b/c it looked good on the internets and it goes south good luck holding me liable b/c I'm not an attorney, I don't play one on TV, and I didn't sleep in a holiday inn express last night.

 

 

A glance at the board's supporting vendors points to one law firm you could check out. (Their banner even mentions knowledge in NFA trusts!)

 

http://www.cain-law.com/

 

 

A quick trip to google turns one attorney I'd look into if you want another. . .

 

http://www.arsenalattorneys.com/

Edited December 31, 2012 by 2.ooohhh

[monkeylizard]

+1 for Chip Cain.

 

Bonus: He's local for Nashville TGOers.

[JayC]

Chip is a good guy, just don't think he can do trusts in other states - unless he is a member of the bar in those states.

[Stegall Law Firm]

True, you will have to get an attorney licensed in the particular state you want to use.  The rule against perpetuities has been expanded greatly in Tennessee and many other states.  With a trust in Tennessee, you can have it go out as 360 years.  In some states they can go forever, but in many states they must terminate after 90 years.  So Tennessee is pretty good.

[JayC]

True, you will have to get an attorney licensed in the particular state you want to use.  The rule against perpetuities has been expanded greatly in Tennessee and many other states.  With a trust in Tennessee, you can have it go out as 360 years.  In some states they can go forever, but in many states they must terminate after 90 years.  So Tennessee is pretty good.

 

That is good to know that they've changed from the old life+21 year rule here...  but, if the AWB is enacted as proposed, it would seem like making a trust in a state that is pro-NFA/pro-2A and allows them to go on forever would be a worth while investment.

 

Or is there some flaw in that logic?

 

And if you don't mind me asking, what are some of the states that have no time limit?

Edited January 1, 2013 by JayC

[Stegall Law Firm]

Don't know specifically which ones, just that some are out there.  You could probably find it pretty easy, then find a lawyer in the state.  Personally I think Tennessee's 360 years are plenty plus we have good spendthrift laws. 

[midtennchip]

Folks, I am working on having a "multigenerational NFA trust" product. However, I will tell you that it is a much more complicated issue than just making the trust last longer. Just think how things change from one generation to the next. If you create a trust that is intended to last 100 years (for example), what would it look like? A 100 year old house (without significant changes over time) would likely not be livable. No updated electrical system, no heat and air, small closets, no updated plumbing, etc. Creating a trust that will still work 2 or 3 generations down the road is equally difficult. No way to guess what the legal landscape (taxes, gun laws, etc) will look like.

Also, I have gotten numerous questions about whether a trust would protect guns from any upcoming law changes. The answer is, no one knows. Until the legislation is passed, there is absolutely NO WAY to know if a trust would fix any perceived problems. If semi-automatic weapons become subject to the NFA, then maybe an NFA trust is the way to go. But maybe they also do away with the trust option altogether.

The multigenerational trust is intriguing, but not sure it would make a lot of sense for most people. Not to mention that it would be much more expensive. Edited January 8, 2013 by midtennchip