Many people mistakenly assume that the Revocable Living Trust is only for the very wealthy. However, in Arizona, a probate action is required whenever someone dies with more than $100,000 of equity in real estate or more than $75,000 in personal property. Anyone with assets titled in personal name valued higher than these amounts should consider the potential benefits of a Revocable Living Trust versus the costs of establishing one.
The best candidates for a Revocable Living Trust are:
There are several arguments against the use of Beneficiary Deeds:
As of today - July 13, 2016 - rule 41F goes into effect for purchases of NFA firearms such as suppressors (silencers) and SBRs. For purchases going forward the process is essentially the same for individuals and trustees of gun trusts. So one of the key benefits of using a gun trust is now lost: simpler registration process. But there are still benefits to using a gun trust rather purchasing a NFA firearm individually.
No. In Arizona, a Pre-hospital Medical Care Directive (aka “Do-Not-Resuscitate Order” or “DNR”) deals exclusively with response by medical personnel to cardiac or respiratory arrest. The directive must be printed on orange paper and signed by the patient’s doctor and an independent witness. It is recommended that the patient wear a bracelet to alert paramedics to the existence of a DNR Order.
A DNR Order is a medical document. A Living Will declaration is a legal document. In effect, a Living Will declaration authorizes the implementation of a DNR Order by the patient's health care agent, or if none, by the patient's health care surrogate as determined by Arizona law.
After identifying the NFA firearm to be purchased, the trustee sends Form 4 (in duplicate) to the ATF with payment of the transfer tax (usually $200 per firearm) and a copy of the entire trust document. The trustee must also include a Form 5320.23 (“Responsible Person Questionnaire”), two Form FD-258 fingerprint cards, and one passport-type photograph for each responsible person (any current trustee). The trustee must also send a copy of Form 4 and a duplicate Form 5320.23 to the chief law enforcement officer (usually the sheriff) in the place where the trustee resides. Other responsible persons for the trust (any other current trustees) must also send a duplicate Form 5320.23 to the chief law enforcement officer where they reside. If purchasing from a dealer or broker, they should help complete this process as part of the sale. It is important not to list the NFA firearm on a list of trust property (some trust forms use a Schedule A) until after the ATF has issued the tax-paid stamp approving the transfer.
A new draft version of Form 4 for transfer of a NFA firearm was released by the ATF. The new form includes reference to the definition of responsible person. I interpret the definition to include current trustees, not successor trustees or beneficiaries. If your NFA gun trust was prepared prior to release of the new Rule 41F in January 2016, I suggest you have your document reviewed to see whether it unintentionally expands the definition of responsible person to more than just current trustees. Although not urgent, this issue should be reviewed prior to purchasing a new NFA firearm.
Rule 41F goes into effect July 13 regarding purchase of NFA firearms. After July 13 both individuals and responsible persons for trusts (current trustees) will have to undergo background check, photograph, fingerprints, and send form to CLEO.
Thomas J. Bouman