Setting up a legal entity called a Gun Trust has been a popular method of bypassing NFA requirements for owning, manufacturing, and transferring Type II firearms (or any other firearms). There are some key benefits we’ll discuss with having a Gun Trust before and after the new NFA regulations take effect on July 13th, 2016.
New Gun Trust Regulations
New NFA Gun Trust regulations will take effect on July 13th, 2016 and after. These regulations are mainly being implemented in order to require the trustees to submit to the same requirements as the person who set up the Gun Trust. Also, the requirements of setting up a Type II Gun Trust will now include photographs, finger prints, and notification to the local chief law enforcement officer (CLEO).
Type II Firearms in Minnesota
Type II firearms include such items as: short-barreled shotguns, silencers, machine guns, and short-barreled rifles. In most states these are legal to own individually without a Gun Trust, but require background checks, photographs, fingerprints, and approval of the CLEO. Many times the problem with this is the CLEO won’t give approval, and even if they do the firearm can only be used by the owner.
Benefits of Gun Trusts in Minnesota
People therefor have been setting up Type II Gun Trusts as a way to make owning and manufacturing these firearms easier or even possible. Currently and until July 13th, these trusts can be set up without fingerprints, a photograph, CLEO notification, and can be used by any of the trustees. Only the person setting up the trust is required to get a background check.
This will change on July 13th and afterwards to the person setting up the trust and the trustee applicants having to get a background check, submit fingerprints, photographs, and then notify their CLEO.
Any Type II Gun Trust set up before July 13th will have the benefits of not having to go through these extra procedures. Everyone designated as a trustee will be legally able to handle, use, and manufacturer these firearms within the law.
Benefits of a Gun Trust Either Way
Setting up Gun Trust for Type II Firearms (or any other firearms) is a great way to retain ownership of assets and transfer them over to heirs. This is estate planning for firearms, which allows for the Gun Trust to continue on after the person who set it up passes away. A Gun Trust ensures the assets are distributed when and how you plan, and offer tax benefits upon distribution.
All who are part of the Gun Trust can legally use the firearms as long as it remains. The new NFA regulations make the process of adding trustees more difficult, but approved trustees will still be able to use and manufacture these firearms without approval of a CLEO. Gun Trusts still make obtaining Type II firearms easier, as well as setting up proper estate planning for them.
Finding an Experienced Lawyer to Help
Time is running out quickly to set up a Type II Gun Trust before the July 13th deadline. Although there are benefits of using a Gun Trust even after the deadline, setting one up before is optimal. Finding an experienced lawyer to help you set up a Gun Trust ensures all regulations and legal implications are understood and adhered to.
Because of the sensitive nature and shifting regulations around gun laws, using an experienced lawyer with expertise in setting up Gun Trusts is important. Gilbert Alden, PLLC can help guide you through setting up a Gun Trust that’s right for your situation. Please contact us for a free consultation.