If you are a gun collector, or even if you own a single firearm, you need to tell your estate planning lawyer about your collection as you begin your estate planning process. Firearms and gun collections are two areas that demand a little more planning than other property issues, though it is not difficult to ensure your gun collection passes to those whom you want to receive it. To effectively plan ahead, you should consider creating a gun trust. Here is what you need to know.

What is a gun trust?

A gun trust, also known as an NFA gun trust, is a type of revocable living trust that is specifically created to transfer certain types of firearms. Under the National Firearms Act, called the “NFA”, the sale, use, transfer, and possession of certain types of firearms is restricted. These include machine guns, short barreled guns, those with noise suppressors or silencers, as well as destructive devices. Though it is legal to own these guns, you must comply with specific NFA regulations in order to transfer them properly.

What does a gun trust do?

In order to own or transfer a restricted firearm, the owner must receive approval from the chief law enforcement officer of your area, as designated under the law. You must also fill out forms and send them to the Bureau of Alcohol Tobacco and Firearms for approval. By creating a gun trust, you can transfer your firearms without having to get approval from the chief local law enforcement officer, and instead send in the transfer documentation directly to the BATF.

John R. Vermillion & Associates, LLC is a member of the American Academy of Estate Planning Attorneys.

You may have heard the recent story about the 48-year-old Florida multimillionaire who legally adopted a 42-year-old girlfriend. This would naturally cause you to question why, though the answer is a little complicated.

Let’s begin back in 2010 when John Goodman, the millionaire in question, was involved in a drunk driving crash that killed a 23-year-old man. Mr. Goodman reportedly drove through a stop sign, crashing into the younger man’s car causing it to flip over into a canal where the young man drowned.

Now consider that Mr. Goodman has two teenage children. Some time ago Mr. Goodman had created an irrevocable living trust for these children, and that trust is now estimated to be worth $400 million. Once the children turned 35 they can divide the trust as they wish.

Since the drunk driving crash, Mr. Goodman not only faces criminal charges but also a wrongful death lawsuit that can strip him of his wealth. The irrevocable living trust that Mr. Goodman established, however, is not subject to seizure under the wrongful death lawsuit. Once he adopted his girlfriend as his child, she therefore was also subject to the irrevocable trust and could receive a one third portion share of it since she was already over the age of 35. She could then go on to share that money with Mr. Goodman if she wants to. However, the probate court has ruled that the trust may be subject to seizure because of his chosen adoption, and lawyers for the children are seeking to have the adoption ruled fraudulent.

John R. Vermillion & Associates, LLC is a member of the American Academy of Estate Planning Attorneys.

If you’re divorced or widowed, you may consider naming your children as beneficiaries of your estate plan.  In almost every situation, it would be better to name trusts for your children, not the children as individuals.

Here’s Why You Should Name a Trust as Beneficiary (Not Your Kids)

• Minor children cannot inherit, legally; if you name a minor child as a beneficiary, the court will have to be petitioned to appoint a guardian of the assets.  If your child’s other parent is then living, he or she will likely be named as guardian; and, this may not be what you want.
• You can create a common trust to meet your children’s needs, without tally, and get them out into the world on equal footing.
• If your child has special needs, the inheritance may disqualify him from receiving governmental assistance.  A trust can be drafted to benefit your child and not disqualify him.
• If your child is going through a divorce when she inherits (or later), your assets may be taken by her divorcing spouse; a trust can avoid this.
• If your child is sued, a creditor can seize the assets in his individual name; a trust can protect against creditor seizure.
• If your child has an addiction problem, a trust can be used to help, not hurt.  Outright inheritances are often squandered and used to fuel an addiction.
• If an inheritance is received outright, it’s harder to fend off predators; a trust helps to prevent your child from being taken advantage of.

If you’re divorced or widowed, consider naming trusts for the benefit of your children as beneficiaries, instead of naming the children as individuals.

John R. Vermillion & Associates, LLC is a member of the American Academy of Estate Planning Attorneys.

Laura read, researched, and consulted with a qualified estate planning attorney.  She decided to include a revocable living trust as the center of her estate plan for these 9 reasons.

• A fully funded revocable living trust avoids court interference, thereby keeping Laura in control and making life much less complex for her loved ones.
• A fully funded trust avoids probate which saves time, money, and keeps Laura’s affairs private.
• Laura has a dog named, “Bruiser.”  She included pet trust provisions in her own trust to be sure that Bruiser was cared for if Laura was ever hospitalized, incapacitated, and when she dies.
• Laura is married to Larry and wants to make sure that she fully uses her lifetime unified credit amount to minimize federal estate taxes; she included A-B trust provisions in her trust.
• Laura wants to make sure her assets stay with Larry and their three children, not a new spouse or Bambi the Hooters waitress; so, Laura includes remarriage provisions in her trust.
• Laura owns her assets in her trust; she avoids joint ownership, so her children will not be disinherited.
• Laura provides for asset protection trusts for Larry and their children so the assets she leaves for them can’t be taken in a divorce, bankruptcy, lawsuit, or other crisis.
• Laura’s mother is on governmental assistance for nursing home care, but Jennifer still wants to leave her an inheritance (without disqualifying her.)  She can do so by including special needs provisions in her trust.
• Laura loves her three nephews but one has a drug problem.  She doesn’t have to disown that nephew; instead, she can include an independent trustee with instructions to distribute trust assets for the care of her nephew, but not directly to him or any other addicted beneficiary.

Laura is sure that a revocable living trust is right for her; if you think a trust may be right for you, consult with a qualified estate planning attorney.

John R. Vermillion & Associates, LLC is a member of the American Academy of Estate Planning Attorneys.

Revocable living trusts are often the foundation for a comprehensive estate plan.  They are commonly used because they have many benefits and few drawbacks.  Here is a list of 6 trust benefits; if you would like to take advantage of any of these benefits, consult with a qualified estate planning attorney.

• Incapacity Planning

The second most popular benefit of trust planning is incapacity planning.  The trust details when the trust maker should be deemed to be incapacitated, names successor trustees, and provides instruction for the trustees.

• Asset Protection Planning

Asset protection planning is a benefit that clients usually don’t know about until they enter the estate planning process; but, it’s huge.  You can include asset protected trust shares for your beneficiaries, granting protections you cannot get for yourself without taking your assets offshore.

When a trust has asset protection, this means that assets are only used for your beneficiary’s benefit.  They can’t be taken creditors in a bankruptcy, lawsuit, malpractice claim, business failure, or divorce.

• Probate Avoidance

Often clients’ interest is piqued by the probate avoidance benefit of trust planning.  If the trust is fully funded, probate is completely avoided and this saves time, money, and hassle and keeps personal and financial affairs private.

• Pet Planning

Currently, pet planning is being covered by the popular press; you can include provisions for a caretaker and trustee in your own trust so that your beloved pet is cared for should you become incapacitated and upon your death.

• Bloodline Protection Planning

You can best assure that assets stay in your family line with bloodline protection planning; this precludes your children and grandchildren from being disinherited, intentionally or not.

• Federal Estate Tax Planning

The federal estate tax continues to make headlines; it’s definitely not written in stone; so, if you’re married, it’s in your best interest to include federal estate tax planning in your revocable living trust.  Use of an A-B trust plan best assures the full use of both married persons’ lifetime applicable exclusion amount.  This minimizes federal estate taxes.

If any of these 6 revocable living trust benefits intrigue you, consult with a qualified estate planning attorney.

John R. Vermillion & Associates, LLC is a member of the American Academy of Estate Planning Attorneys.

The revocable living trust is often used as the center of an estate plan; it serves as an instruction book for your trusted helpers to carry out your wishes.  Here are 6 reasons you would want a revocable living trust (hereinafter, “trust.”)

• Trusts have gained popularity as a probate avoidance tool.  When your trust is fully funded, your estate may not need to go through probate.  This can save substantial hassle, time, and money as well as keep your financial and family affairs private.

• Trusts are effective immediately and therefore provide benefit during your lifetime, specifically, during any period of incapacity.  Therefore, court interference (i.e. guardianship proceeding) is avoided; you stay in control; and, costs, hassle, time delay are minimized.

• You can include bloodline protection in your trust, meaning that your assets won’t go to your spouse’s subsequent spouse or paramour, but instead will go to your children; you have the options of naming an independent trustee to control distributions, requiring a prenuptial agreement, and turning off access to some trust funds if your spouse remarries.

• You can provide for beneficiaries with special needs by including special needs trust language in your own trust.  This means that an inheritance will not disqualify your loved one from receiving governmental assistance.

• You can protect the assets that pass to your loved ones so they cannot be taken by creditors such as a divorcing spouse, bankruptcy creditor, or lawsuit plaintiff.

• You can provide for your pet in your own trust by including pet trust provisions so your pet will be cared for even if you are hospitalized or incapacitated, and when you die.  You choose a caretaker to care for your pet and a trustee to manage the trust assets and distributions.

John R. Vermillion & Associates, LLC is a member of the American Academy of Estate Planning Attorneys.

If you’re like many people, you may be considering creating a revocable living trust.  This is a powerful planning tool that can have many benefits.  It’s important to carefully handle your affairs, including trust funding, so that you’re able to achieve all benefits.  This is especially true if you’re creating the revocable living trust to avoid probate.  Take a look at the information below, to learn more.

One of the main benefits of creating a revocable living trust is the ability to avoid probate.  This can save time and money, and can allow your beneficiaries to receive their inheritances more quickly.  This is why so many people choose to create this type of trust, in addition to their will.  In order for your trust to be effective, and to avoid probate, your trust must be fully funded.

This means that the assets held in your trust must be re-titled to reflect the name of your trust.  If you don’t fully fund your trust, you will not be able to take advantage of its benefits.  It’s important to carefully fund each asset and receive confirmation that the asset is now titled in the name of your trust.  This will allow your trust to work to the best of its ability.

If you’re just getting started creating a revocable living trust, it’s a good idea to work with an attorney.  This will allow you to get the best results possible, and can make it possible for you to avoid costly errors.  An estate planning attorney can assist with all aspects of your trust, including funding, while also helping your with your other estate planning affairs.

John R. Vermillion & Associates, LLC is a member of the American Academy of Estate Planning Attorneys.

While estate planning is a powerful and essential planning tool, only some choose to utilize it during their lifetime.  With a plan in place, it’s possible to be prepared for the future.  It’s important to understand how your affairs will be handled after your death, whether you have a plan in place, or not.  Take a look at the following information, to better understand what will happen after your death.

What Happens When You Die Without a Will or Without Any Planning in Place

Unfortunately, many people choose never to plan, and they die without a will.  If you die without a will, this means that you will have no control in how your affairs are handled.

Without a will in place, state laws determine how assets are distributed to beneficiaries, and the probate court is responsible for making other important decisions.

For example, the probate court will choose a representative to handle your estate affairs.  This “administrator” locates, manages, and distributes your assets, and handles your estate’s financial affairs.

In addition, the probate court will also choose a guardian for your minor children.  This means that you will not choose who raises your children.

Plus, your assets will be distributed based on your state’s intestacy laws.  Depending on the size of your estate, your heirs may have to prove in court with witness testimony who is entitled to inherit from your estate.  This process can take several months or years, but at its completion, your estate will be settled.

What Happens When You Die With a Will

If you choose to create a will, you will have control over what happens after you die.  Your will is used to guide the probate court and your executor in how to settle your estate.

Your executor will need to find your will, and present it to the probate court.  He or she will also have to find and locate assets and notify beneficiaries that probate has begun.

Once your will is validated, it’s used to appoint a guardian for your children and to determine how your assets are distributed.  Even with a will, this process can take several months or years.  At completion of the entire process, your estate will be settled.

If you have any questions about your own estate planning affairs, consult with a qualified estate planning attorney.  Please checkout part 2 of Estate Planning:  What Happens After Death.

John R. Vermillion & Associates, LLC is a member of the American Academy of Estate Planning Attorneys.

Many people associate the revocable living trust with probate avoidance.  It’s true; when fully funded, a revocable living trust does indeed avoid probate.  This saves time, money, and stress and keeps your personal beneficiary and financial information private.  That’s all great; but there are so many other cool things that you can do with a revocable living trust as well.

• Incapacity Planning (i.e. Keeping the court out of your life and your wallet.  That’s cool.)  You can avoid a court guardianship, which is emotionally painful for everyone involved, time consuming, expensive, and public.  You select a trustee (and successor trustee) to manage trust assets and your financial well-being should you become incapacitated.

• Pet Planning.  Making sure your pet is not euthanized when you can no longer care for her is cool.  Your revocable living trust can include pet trust provisions so your beloved pet is always cared for.

• Asset Protection Planning.  Protecting your surviving spouse’s inheritance and your children’s inheritances from being seized by creditors and predators is cool.  Think “divorcing spouse, bankruptcy creditor, or lawsuit plaintiff.”  Their hands are tied.  You can include lifetime asset protection trusts for your beneficiaries in your own trust.  Although creditors won’t think this is cool, your family will.

• Charitable Planning.  You can use your own trust to make a dent in the universe and leave a legacy.  Very cool.

• Bloodline Protection Planning.  You can make sure that your children aren’t disinherited, intentionally or unintentionally, by making provisions for trusts for your loved ones in your own trust.  Your children will think this is cool.

• Remarriage Protection.  You have the option of requiring your surviving spouse to get a prenuptial agreement before getting remarried.  You also have the option of cutting off access to the family trust upon remarriage.

• Special Needs Planning.  You don’t have to disinherit a special needs beneficiary.  Instead, you can give an inheritance in a special needs trust with provisions in your own trust.  Special language keeps your gift from disqualifying your special needs beneficiary from receiving governmental assistance.

John R. Vermillion & Associates, LLC is a member of the American Academy of Estate Planning Attorneys.

A revocable living trust is often the center of an estate plan.  While it’s not all encompassing and is used in conjunction with other ancillary estate planning documents, a trust is incredibly beneficial for most estate planning clients.

Cindy had read several books on estate planning.  She did more online research and realized that she and her husband, Jack, needed a revocable living trust.  She emailed her CPA and asked for a referral to a qualified estate planning attorney and was pleased to receive an immediate response.

Cindy made an appointment for she and Jack to meet with the estate planning attorney who agreed with her conclusion that they would benefit from an estate plan including a revocable living trust.

After much thought and consultation, the estate plan was designed, drafted, executed, and implemented.  Cindy and her attorney were both very good at follow through; Cindy wanted to get everything in order before their third child was born.

Just a few months later, Jack was killed in a work accident.  He was electrocuted and never regained consciousness.  Cindy called the estate planning attorney who took care of everything so Cindy could focus on her family.  He kept Cindy abreast of all actions taken.

Through provisions in the revocable living trust, an asset protected family trust was set up with Jack’s share of the assets.  The trust benefited Cindy and her three children.  Cindy and the CPA were trustees.

On the way to playgroup just 6 weeks after Jack’s funeral, Cindy was distracted for a moment because the kids were crying and she was still distraught over Jack’s death.  She went through a red light and plowed into an SUV containing a family.  Everyone in the SUV was killed, but for one child in a car seat.

Lawsuits ensued.  All of Cindy’s assets were seized.  She and the three children would have been left with nothing but for the family trust which was asset protected and couldn’t be seized in any law suit.

To this day, Cindy is grateful that she and Jack did revocable living trust planning.

John R. Vermillion & Associates, LLC is a member of the American Academy of Estate Planning Attorneys.