A Texas Gun Trust is a revocable trust formed under section 112.001 et. seq. of the Texas Property Code. The primary objective of the trust is to maintain continuity of ownership through several generations, thus avoiding unnecessary transfers upon the deaths of the grantor and some of the beneficiaries.
There are many benefits to a Texas Gun Trust:
NFA-restricted firearms are not permitted to be transported or handled by any other individual unless the registered owner is present. However, when owned by a properly drafted gun trust, these weapons may be legally possessed by the trustee, and any beneficiary may use the firearm under the authority of, or in the presence of, the trustee. This greatly simplifies and expedites the transfer, and saves your beneficiaries from any unintended violations of the National Firearms Act. Furthermore, these trusts are not subject to many of the application requirements of the ATF.
Many individuals choose to use a corporate entity to own their firearm collection. However, many corporate documents are a matter of public record. Trust documents are generally not recorded, thus protecting your family’s confidentiality. Finally, a spendthrift clause can be used to shield a beneficiary’s interest in a trust from his or her creditors, including a spouse in a divorce proceeding or a bankruptcy trustee. Corporations do not enjoy the protection offered by a properly drafted spendthrift clause.
If your family heirlooms include firearms, particularly Title 2 weapons, you should discuss a Texas Gun Trust with a legal professional.