Question 1: What is a gun trust?

A form of revocable living trust, a gun trust allows Florida gun owners to transfer ownership of specific types of firearms. The trust, under the direction of the trustee, owns the guns on behalf of the beneficiaries, who get to use the weapons. Gun trusts are specifically designed to allow people who own firearms restricted under the National Firearms Act. This law limits who can own, use, or transfer such weapons as machine guns, sawed-off shotguns, and explosive devices such as grenades.

Question 2: What are the benefits of a gun trust?

Like other revocable living trusts, a gun trust can allow you to transfer your firearms collection outside of the probate process. This makes your transfer much more private. Further, you can avoid having to get approval from the local chief of police before transferring through the trust. Without a gun trust, you must first get approval from the local law enforcement official before you can submit your transfer documentation to the Bureau of Alcohol, Tobacco, Firearms and Explosives.

Question 3: How do I create a gun trust?

Like all revocable living trusts, you can create a gun trust by drafting the appropriate legal document. You do not need to register this document with a government agency, but you do have to ensure the document complies with all federal and state laws. A gun trust must also contain specific provisions that make it slightly different than other revocable living trusts, so you should speak to your estate planning lawyer for detailed instruction.

Robert J. Kulas, P.A. Attorneys at Law is a member of the American Academy of Estate Planning Attorneys.

Tip 1: Consider your own desires. There are any number of charities that serve any number of worthy causes. Will you give a donation to your local religious organization, your alma matter, a charity that aids in medical research, an international organization that assists children in developing nations, or a combination of groups? The available choices are endless. If you’re having difficulty, it’s best to sit down and come up with a list of causes or organizations that you feel are most important to you. Once you have the list, you can choose which charities to focus on.

Tip 2: Research the organization. Many, if not most, charities and non-profit organizations are honestly run and operated, working to ensure donations go to those people or causes that they serve. Others, however, can be less well run, while a few may be downright dishonest. For example, musician Kanye West’s now defunct charitable foundation reported that in 2010 it had $572,383 in expenses, while giving out $0 in grants gifts or contributions. Charity Navigator, a nonprofit charity watchdog group, states that a charity should have no more than 15 percent of its cash flow dedicated to expenses and overhead.

Tip 3: Consider your own charity. If you want to have even more control over how your estate gift is used, you can also start your own charitable foundation or charitable trust. A trust is a good choice if you want your gift to have a long-lasting impact or if you think there is a significant charitable issue that is being underserved.

Robert J. Kulas, P.A. Attorneys at Law is a member of the American Academy of Estate Planning Attorneys.

Creating a trust is a popular estate planning tool, particularly when it comes to a living trust.  Here is a quick rundown on how a living trust works:

• A living trust is a legal arrangement in which a person, called the grantor, shifts ownership of property, such as stock, a home, real estate or bank accounts, from their ownership into the legal ownership of the trust.
• A trustee manages the trust’s assets according to the terms of the trust agreement. The trustee can be the grantor, a friend or family member or a corporate entity.  As the initial trustee, the grantor can maintain full control of the trust until his or her death or incapacity. When the grantor relinquishes the trustee role, a successor trustee takes over the trustee duties. The successor trustee has legal responsibility for administering the trust solely for its named beneficiaries.

So what does a successor trustee do when they take over a living trust when the grantor passes away?  Some of the first steps to take are to protect the assets:

• Valuable property should be secured, such as in a safe deposit box.
• Accounts at financial institutions should be transferred into a federally-insured account for the trust.
• The trust should have its own tax identification number.
• If property such as a residence, needs maintenance and repair, it is the trustee’s duty to see that this is done, paid for with the trust’s assets.
• Proceeds from life insurance and other death benefits are payable to the designated beneficiary. If the trust is the designated beneficiary, claim forms should be completed, and submitted as soon as possible.
• Credit cards issued in the deceased’s name should be cut, and the pieces should be returned to the issuer with a request to cancel the account. If there is a joint account holder, advise each credit card company of the date of the death and let it know that the surviving account holder will be solely responsible for any charges.
• Trust assets should be insured against claims. Make sure existing policies continue after the deceased’s death or take out new policies.

Taking on trustee duties is a big responsibility, but one that does not need to be done alone.  A trustee can hire professionals to assist in administering the trust, and those fees are paid for with trust assets.

Robert J. Kulas, P.A. Attorneys at Law is a member of the American Academy of Estate Planning Attorneys.