What are the main benefits of a gun trust for your Class III purchases?
Three of the most important benefits of a gun trust are:
(1) NFA items registered to a gun trust can be used and possessed by more than one person. The settlor of the gun trust can add or delete persons (co-trustees) who are allowed to use and possess the NFA items throughout his or her lifetime. NFA items registered to an individual can only be used and possessed by the registered individual during the individual’s lifetime.
(2) NFA items registered to a gun trust pass to the beneficiaries of the gun trust outside of the probate process according to the terms and conditions of the gun trust agreement prepared by the settlor. NFA items registered to an individual pass to his or her beneficiaries according to the terms of the individual’s last will and testament, which is probated in a probate court and provided to the ATF during the transfer process so the executor can prove to the ATF that the individual intended to transfer the NFA firearms to the beneficiaries.
(3) If your NFA items are owned by you individually and you are later deemed to be incompetent, your NFA items are subject to confiscation immediately since it is illegal for any other individual to take possession of your NFA items. On the other hand, if your gun trust owns your NFA items, any co-trustee can take possession of your NFA items to hold them on your behalf. In other words, you will not lose ownership of your items. As as result, you will retain the ability to either direct that the NFA items be sold and the cash returned to you, or that the NFA items continue to be held in trust for the beneficiaries to inherit when you die.