• Real estate in a gun trust?

    Someone asked us about putting real estate (i.e. land) in a gun trust.

    “I have been thinking about adding Real Property and would like further instructions on how to go about doing that. Thanks”

    Here was our answer:

    Our NFA Firearms Trust is a specialized trust intended for the sole purposes described on the website.

    While the NFA Firearms Trust, like any legal trust, can, theoretically, be used to own other types of property, including real estate, that is NOT what we recommend, for a number of reasons.

    If you want to use a trust to hold your real estate, which may be a good idea, we recommend that you create a new, separate trust exclusively for that purpose, for the following reasons.

    First, because an NFA Firearm and your real estate are very different assets, you may want to use different persons in the role of Trustee. For example, the NFA Firearms Trust requires Trustees who are eligible to own federally regulated firearms, but your land trust would not require that.

    Second, the NFA Firearms Trust does not normally have any further economic activity, but your real estate will certainly have that type of activity, because you have to pay property taxes, utilities, maintenance, insurance, etc., So your real estate trust may require a bank account, which will require you to obtain a Federal Employer Number (FEN) and possibly to file tax returns, etc.

    So our recommendation is to use separate trusts. But you can certainly just copy our NFA Firearms Trust or use it as a model for your real estate trust.

    Finally, in order to transfer real property, you need to have a deed prepared, with an accurate property description. You can look at the deed into you where you acquired the property for the form and the property description. That deed then has to be executed (signed, witnessed and notarized) according to your state’s laws, which will likely be very similar to what you have done for your trust. Then the deed needs to be filed at the County Courthouse to provide public notice as to who owns the property and a transfer tax will likely have to be paid.

    I hope that this helps.

    A local realtor or closing lawyer would be your best bet for further information.

    Best regards.

    ~ The customer service team.

     

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