Tag: Young Family

What is a Gun Trust?

Posted on by Michigan Gun Law

Estate planning for firearm owners is not the same as an estate plan for a young married couple with small children. While the firearm owner may be the young married couple with small children, the estate plan for firearms needs to discuss when, to whom, and how to properly transfer both Title I firearms and Title II firearms. A revocable trust will effectively manage the typical trust assets such as bank accounts, funds from life insurance policies, a house, and distribution of trust assets to beneficiaries, a separate trust designed specifically for the transfer of firearms needs to be a part of the complete estate plan.

A revocable trust designed for the ownership and transfer of firearms is known as either an NFA Firearms Trust or a Gun Trust. While some law firms use these names interchangeably, here at Michigan Gun Law, they are two separate trusts. An NFA Firearms Trust or National Firearms Trust is a revocable living trust designed for the sole purpose of owning and transferring Title II ,also known as Class 3, firearms.  A gun trust is revocable living trust designed for the ownership and transfer of both Title I and Title II firearms.

Title II firearms are those in which the federal government has enacted laws to restrict ownership. Title II firearms include short-barreled rifles and shotguns, machine guns, destructive devices, and silencers, also known as suppressors. All of these firearms require a tax stamp to own and register the firearm to a specific individual. Title II firearms may not be loaned to another person or transferred without the involvement of paperwork and BATFE officials. State laws vary on which of these firearms are legal to own or possess within the state. Some states may allow the ownership and possession of these firearms but restrict the ability to transfer the firearm upon death.

The NFA Firearms Trust provides a means to preserve the firearm after the death of the individual creating the trust, because the trust owns the firearms and has the tax stamp, not the individual. In addition, the trust provides specific instructions to successor trustees on how to transfer the firearms, where to find the relevant laws, to whom the firearms may be transferred, and the requirements under federal law to own or possess a firearm. All this information is important to a successor trustee that may not be as knowledgeable as the firearms owner who created the trust.

Another benefit of an NFA Firearms Trust is that firearms owner can omit a family member that is not qualified under federal law to own a firearm as a beneficiary under this trust, while still providing for the family member in the separate revocable living trust. This eliminates the hard choice of leaving a loved out of the estate plan because of choices that resulted in “prohibited person” status under federal law with firearms.

18 U.S.C. 922(g) defines who is a prohibited person. Some of those people include anyone convicted of a crime punishable by imprisonment exceeding one year, someone who was dishonorably discharged from military service, someone who was adjudicated as mentally defective or committed to a mental institution, a person who is an unlawful user of or addicted to any controlled substance, an illegal alien, or a person convicted of misdemeanor domestic violence. There are other categories of individuals who are prohibited to own firearms under federal law. A thorough review of 18 U.S.C. 922(g) should be done before any individual is named or added to an NFA Firearms Trust. 

Here, at Michigan Gun Law, we vet your chosen successor trustees and beneficiaries before we draft the trust to ensure that no prohibited person is named within the trust documents. In addition, we educate the firearm owner on what steps to take when they learn that a loved one has become a prohibited person.

If you are interested creating an NFA Firearms Trust or a gun trust, call Michigan Gun Law where our attorneys have the experience and in-depth knowledge in this area to craft a gun trust that meet your needs. Contact us today at (248) 230-2545 to schedule your pre-engagement meeting.

Estate Planning for the Young Family: Is It Right for You?

Posted on by Michigan Gun Law

By: Danyelle Griffith – Client Coordinator

Estate planning is not something that most young people think about. As a young person, I can attest that a good portion of us think about the immediate future and not what could happen weeks, months or even years from now. Since we are young, we do not think about dying; however, it can happen! The aftermath of not planning can have your family in a whirlwind of paperwork and court visits trying to settle your affairs.

That is one of the reasons that I felt I needed an estate plan for myself. My situation is unique and not like most people my age. As a young, soon-to-be divorced mother of three young girls, their safety and future are always on my mind. I am constantly wondering if I am going to be raising them right, will they turn out to be good people? And it does not end there. Shortly before my twins were born this past April, I started to wonder what would happen if I wasn’t here for them? What happens to my bills? What happens to my girls?

The Griffith Twins

Without divulging too much information, my situation at that time was not the best. I had been separated from my soon-to-be ex-husband – who was not in a good position to take care of our children if something happened to me – for about seven months. I had no plan for myself or my kids if something were to go wrong when I was giving birth, which there is typically a higher risk with twin pregnancies. Fortunately, I work for a law firm that handles estate plans regularly. My co-workers were willing to have that conversation with me that opened my eyes to the options that were available to me. I could set up a plan for my kids and myself if something unexpected were to happen. I needed to set up an estate plan, for my own peace of mind.

The plan I had set up for me was basic. It laid out who was to take care of my children if I passed, who would get what in the event of my passing, who would make decisions for me if I was unconscious, and what my final wishes were. This is not something most twenty-four-year-olds think about. In fact, a lot of young people like myself have nothing set up for themselves. If something were to happen to them, their family may run into trouble as it comes to their final wishes and expenses, or if they are just simply unconscious, their family may not be able to get the information that is needed from the medical field to make an informed decision for them because they do not have the authority. When everything is planned out, there is no question for anyone involved.

After I set my plan up, a huge sense of relief rushed over me. I knew my girls would be taken care of in a way that they would be safe and provided for. I knew that everyone knew exactly what their role to play would be in the worst-case scenario. Planning, in my eyes, was the best decision I could have made. Even though I simply had a basic plan, or a Will and Powers of Attorney drafted, I knew that even if the courts had to become involved that I had made the process that much easier for my family.

As my situation changes, I will be going back and changing my estate plan, just as I think everyone should. It is the responsible thing to do. Planning for your future according to your situation now is how we best prepare for our future. You never know what is going to happen. Being prepared, as a parent, is sometimes hard to do, but for me, an estate plan was an easy place to start.

If you are a young parent, or just simply a young adult, please call Michigan Gun Law today at (248) 676-8978 to start drafting your estate plan. Today is guaranteed, tomorrow is not. Do not leave your families in shambles if something should happen to you.