Estate Planning and Trusts Blog
In this video, Cindy discusses some of the adverse consequences of using a corporation or LLC to own NFA firearms when you’re not using that corporation or LLC for a gun-sale related business.
Want Prison Time? Make an NFA Firearm Without ATF Approval
We’ve living through some pretty tumultuous times, so we’ve been getting a lot of calls recently about gun trusts. One 20-year old man – we’ll call him Johnny – asked an interesting question: was there a legal way he could use a gun trust to buy regular (Title I) or NFA (Title II) firearms in Florida?
The short answer – if you don’t want to read any further – is no.
Here’s the longer explanation >>>
As many of you know, the absolutely atrocious Marjory Stoneman Douglas High School Public Safety Act, was passed in March 2018 by our cowering legislators in a knee-jerk reaction to the Parkland murders. One of the things it did was raise the legal age to PURCHASE any guns in Florida to 21. A person under age 21 is still allowed to POSSESS guns legally acquired before the law passed, or gifted to them after the law passed. They are just prohibited from buying them.
And, of course, the federal laws against straw purchases are still in effect, so a person under the age of 21 can’t give money to someone 21 or over – not even a parent or sibling – to buy a gun for him or her.
Johnny was wondering whether by naming himself and his father as trustees on a gun trust and opening a bank account in the name of the trust (a perfectly legal thing to do), the funds from the gun trust bank account could be used by his father, acting as trustee, to buy a gun for the gun trust.
We’ll consider buying a “plain vanilla” Title I gun, such as a Glock 17, first.
The federal gun laws make no sense. For some reason, when it comes to Title I guns, a trust isn’t considered a “person,” and only “persons” can buy Title I guns. Since Johnny is the sole Grantor of the gun trust, it’s presumed by law that the money in the trust bank account is his. So Dad would be filling out the ATF Form 4473 at the gun shop in his own name, certifying that he was purchasing the gun for himself, but using Johnny’s money with the intent that the gun would be Johnny’s. That’s a straw purchase. Big felony no-no.
Now, could Dad use his own money and buy the gun as an individual, with the intent to gift it to Johnny? Yes, that’s legal and not considered a straw purchase (as long as Johnny doesn’t give him anything in cash or trade for it). Johnny could then assign that gun to his gun trust and possess it legally. But that’s not what Johnny wants – he wants to be his own man, not rely on Dad for gifts.
What about buying an NFA firearm, such as a suppressor, using gun trust funds? That’s a bit more complicated because now we have to look at Florida law, federal law, and the ATF’s rules regarding the transfers of NFA firearms.
First, we’ll look at how gun trusts and NFA firearms work. Under the federal law, a trust IS considered a “person” when it comes to transferring (buying, giving, or manufacturing) Title II (NFA) firearms. But in 2016, the ATF changed its rules regarding the process when a trust applies for permission to transfer a NFA firearm, making it harder and more complicated. All the Grantors and Trustees on a gun trust are now considered “Responsible Persons” (RPs) under the current NFA transfer rules. Every RP must be qualified to buy and possess firearms under federal and state laws.
When a NFA firearm is being transferred, the trustee completes a Form 4 with information about the trust and every RP completes a Form 23, which is very similar to the Form 4473 that everyone completes every time they buy a plain vanilla, non-NFA gun. Each RP also submits FBI fingerprint cards and a passport photo for a criminal background check.
In Florida, our current law states that “A person younger than 21 years of age may not purchase a firearm.” (Fla. Stat. 790.065 (13)). And Florida’s definition of “firearm” means “any weapon (including a starter gun) which will, is designed to, or may readily be converted to expel a projectile by the action of an explosive; the frame or receiver of any such weapon; any firearm muffler or firearm silencer; any destructive device; or any machine gun.” (Fla. Stat. 790.001(6)). So, essentially all NFA firearms are included in that definition.
If Johnny is the Grantor and/or a Trustee on a gun trust, he’s an RP and thus the ATF will deny an application for the trust to purchase the suppressor because Florida doesn’t allow him to buy one.
So, while Johnny is legally entitled to vote, enlist in the military, serve on a jury, buy porn, be sued, get married, apply for a mortgage, and drive a 2-ton motor vehicle at speeds that can turn himself and others into mush, he’ll have to wait until he’s 21 to be able to legally purchase any Title I or Title II firearm in Florida.
Want Prison Time? Make an NFA Firearm Without ATF Approval
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In this video recorded a few months ago, Cindy discusses some of the ways family dysfunction can torpedo the best-laid estate plans.
Why is This Probate Taking So Long?
Like most people, dementia fascinates and terrifies me. I read everything I can about it, and have shared many articles about dementia studies on our Manasota Elder Law Facebook page and Twitter account. But I’m seriously considering discontinuing that practice because I realized today that most of the articles about the studies provides no actual value, and may cause people to believe something that hasn’t been definitively proven to be true.
I pulled up a bunch of recent dementia-related articles on Google recently and this is what I saw:
Do you see a common theme? I do: No one actually knows what causes dementia – it’s all still a guessing game.
Who can say for sure that the people in the aluminum and fluoride study didn’t also have belly fat or gum disease? Or that maybe people with hearing or visual impairment have high fluoride levels? Apparently black people disproportionately suffer from high blood pressure and diabetes, which are alleged to be correlated to dementia. But perhaps there’s a link between belly fat, high blood pressure and diabetes?
I don’t know. I’m not a doctor or scientist. And neither are most of you. But I do know how to think critically and I also know there’s a huge difference between correlation and causation.
So, perhaps, until someone can absolutely prove that something always CAUSES dementia – not just that there’s a CORRELATION – we should stop worrying about things we can’t control and live the best, happiest and healthiest lives we can. And part of that is planning for the worst while hoping for the best.
So, when you see articles purporting to show a link between something and dementia, take it with a grain of salt. And maybe a shot of tequila. 🙂
Can I Protect My Daughter’s Inheritance from Her Loser Husband?
Free Legal Advice – Worth Every Penny
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In this video, Cindy discusses what actually happens when you die in Florida while owning NFA firearms, and you named an out-of state executor or trustee.
Want Prison Time? Make an NFA Firearm Without ATF Approval
You should start thinking about your own long-term care when you’re in your 50s and 60s. By the time you’re 70, some options could be gone. With the national median annual cost of a private room in a nursing facility coming in at more than $100,000, not having a plan can become one of the most expensive mistakes of your financial life. The article “Four steps you can take to safeguard your retirement savings from this risk” from CNBC says that even if care is provided in your own home, the annual median national cost of in-home skilled nursing is $87.50 per visit.
There are fewer and fewer insurance companies that offer long-term care insurance policies, and, even with a policy, there are many out-of-pocket costs. However, there are options to traditional long-term care-only policies you should consider, such as life insurance and annuities with long term care benefits.
People also often fail to prepare for the indirect cost of caregiving, which primarily impacts working women who are taking care of older, infirm male spouses and aging parents. More than 34 million Americans provided unpaid care to older adults in 2015, with an economic value of $522 billion per year.
There’s also the stress of caring for loved ones, watching them decline, and needing increasingly more help from other sources.
The best time to start planning for long-term care is around age 60. By that time, most people have experienced their parent’s aging and understand the planning and conversations with loved ones that need to happen.
Living Transitions. Do you want to remain at home as long as is practicable, or would you rather move to a continuing care retirement community? If you’re planning on aging in place in your home, what changes will need to be made to your home to ensure that you can live there safely? How will you protect yourself from loneliness if you plan on staying at home?
Driving Transitions. Knowing when to turn in your car keys is a big issue for seniors. How will you get around if and when you’re no longer able to drive safely? What transportation alternatives are available in your community?
Financial Caretaking. Cognitive decline can start as early as your 50s, leading people to make mistakes that cost them dearly. Forgetting to pay bills, paying some bills twice, or forgetting about some accounts, are signs that you may need some help with your financial affairs. Consider simplifying things by having one checking account, one savings account, and three credit cards: one for public use, one for automatic bill-paying, and a third for online purchases.
Healthcare Transitions. If you don’t already have an advance directive, you need to have one created as part of your overall estate plan. This allows you to state, in writing, how you want to receive care if you’re not able to communicate your wishes. Not having this document may mean that you’re kept alive by “heroic” or extraordinary means (machines) when you’d prefer to die naturally. You’ll also need a Health Care Power of Attorney/Designation of Health Care Surrogate so you can authorize a person to make medical decisions on your behalf when you cannot. This person doesn’t have to be a spouse or an adult child—sometimes it’s best to have a trusted friend who will follow your directions. Make sure this person is willing to serve, even if your documented wishes may be challenged.
Reference: CNBC (Jan. 31, 2020) “Four steps you can take to safeguard your retirement savings from this risk”
Other articles you may find interesting:
Simple Safety Tips for Seniors
Will my Illinois Will Work When I Move to Florida?
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In this video, Cindy explains what an ABLE Account is and how it may help your disabled loved ones.
Administering a Special Needs Trust
Naming a Family Member as Successor Trustee: Pros & Cons
I’m a U.S. veteran and so is my husband and two of our children. We have lots of veteran friends and I have a very large number of veteran clients. But I’m constantly surprised at the sheer number and variety of benefits available to veterans – if they know to look for them.
I won’t pretend to know all the benefits provided to Florida veterans, but if you’re interested in learning more for yourself or a loved one, start with this article in which each state mentions their newest or most unique veteran benefit. Then just keep following the links you find in each article to discover more and more…
Will my Illinois Will Work When I Move to Florida?
Simple Safety Tips for Seniors
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In this video, Cindy discusses what happens in Florida if you die without a Will.
What happens when a beneficiary form – whether it’s on a TOD account, an IRA, life insurance, or an annuity – is different from what Mom or Dad wrote in their Will or Revocable Living Trust? Unfortunately, this often isn’t discovered until after Mom or Dad is dead. As this article mentions, generally, what’s on the beneficiary designation form trumps the Will or Trust, even if that wasn’t the intention.
I often hear Mom say “I just put my oldest daughter on my bank/investment account as a beneficiary because I know she’ll split it with the other kids.” Bad juju there. Maybe she would, but as soon as Mom’s dead, that money is legally 100% hers. She could buy a new house, put in a pool, travel to Italy and there’s nothing her siblings could do about it. Maybe she’s incapacitated and her husband is now controlling all of her assets as the Agent on her Durable Power of Attorney and he decides to (legally) use the money to buy a new car, fix the house, etc. Bye, bye inheritance. Or, she’s hit with divorce papers shortly after Mom dies. Oops, if she deposited that money into their joint bank account, it’s now a marital asset that will subject to the divorce.
Beneficiary forms should be used very carefully and reviewed every couple of years because each institution’s rules about what happens if one of those named beneficiaries dies before inheriting is different. Never assume anything. And meet with an estate planning attorney to make sure you have an actual plan, not just a bunch of random documents that may work at cross purposes to each other.
What’s the Difference? Living Will, Health Care Surrogate, DNR
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