Gun trusts have become an increasingly popular tool for gun owners in North Carolina. These legal entities are designed to hold firearms and related assets, and they can provide a variety of benefits. However, they also have some potential drawbacks that gun owners should be aware of. In this article, we will explore the advantages and disadvantages of gun trusts in North Carolina.

Advantages of Gun Trusts in North Carolina

1. Multiple trustees: A gun trust can have multiple trustees, which means that more than one person can legally possess and use the firearms held by the trust. This can be helpful for families who want to ensure that their firearms are passed down to future generations or for friends who want to jointly own firearms.
2. Easy transfer of firearms: When a gun owner dies, their firearms can be difficult to transfer to the next generation. A gun trust can simplify this process, allowing the firearms to be passed on to the beneficiaries of the trust without having to go through the probate process.
3. Privacy: Gun trusts are not public record, so they can provide some privacy for gun owners who may not want their firearm ownership to be publicly known. This can be especially important for high-profile individuals or those who want to keep their gun ownership private for personal reasons.
4. NFA compliance: If you own certain firearms that fall under the National Firearms Act (NFA), such as suppressors or machine guns, a gun trust can help you comply with the regulations related to those firearms. A gun trust can allow multiple people to legally possess these firearms and can also make it easier to transfer them to future generations.

Disadvantages of Gun Trusts in North Carolina

1. Cost: Setting up a gun trust can be expensive, and ongoing maintenance can also incur additional costs. This can be a significant barrier for some gun owners who may not want to invest the time and money required to set up and maintain a gun trust.
2. Complexity: Gun trusts can be complex legal entities, and they may require ongoing legal advice and guidance. This can be especially true for gun owners who are not familiar with estate planning or trust law.
3. Lack of control: When firearms are held in a gun trust, the trustee(s) have control over them, rather than the individual gun owner. This can be a disadvantage if you want complete control over your firearms or if you do not trust the trustee(s) to make decisions about your firearms.
4. Liability: If a trustee misuses a firearm or violates any gun laws, the gun trust , and its beneficiaries could be held liable. This means that gun owners need to carefully consider who they appoint as trustees and ensure that they are trustworthy and responsible individuals.

Conclusion

In conclusion, gun trusts can be a useful tool for gun owners in North Carolina, but they also have some potential drawbacks that should be carefully considered. Before setting up a gun trust, gun owners should consider the costs, complexity, and potential loss of control over their firearms. They should also carefully select trustees who are trustworthy and responsible individuals. By weighing the advantages and disadvantages of gun trusts, gun owners can make an informed decision about whether a gun trust is right for them.

Greg McIntyre
Estate Planning & Elder Law Attorney

I am frequently asked the following question: “I have a [insert legal document] that was drafted for me out of state. Is it valid in North Carolina?” The answer? It depends. Legal documents like wills, trusts, and powers of attorney are typically set up to be valid in any state. However, there are further considerations to … well consider.

If the document was drafted by an attorney in another state, then it will likely be valid and usable in NC. If it was a fillable form or something you got off a website, then you’re rolling the dice as to whether it’s valid in ANY state.

If the document was drafted by an attorney, different states have different laws. While the requirements for a valid estate planning documents are pretty consistent among the states, there are some differences of which to be wary.

The general requirements for wills are as follows. Wills must be signed, witnessed, and attested. The testator (creator of the will) must be of legal age, have the intent to create the will, and be of sound mind.  Most states have similar definitions of these requirements, but they can differ. For example, the legal age for most states is 18. However, in Louisiana, a person as young as 14 can create a will. Another example is the witness requirements. Most states require a minimum of 2 witnesses to be present and observe the testator signing the will. However, good ol’ Vermont requires a minimum of three witnesses (which is surprising for a state with such a small population).

Other estate planning documents are similar to wills in that most require a witness. Some just require a signature and a notary. However, each state may differ in their requirements. Most states tend to have some sort of law that basically says that if a legal document was validly created under the laws of another state, the new state will accept it notwithstanding the different standards.

There is also the fact that the legal document itself might be valid but certain provisions in the legal document may not be. This is especially true if you are moving from a community property state to a state that does not have community property laws. Furthermore, in some states you can disinherit your spouse. In NC, for example, there are laws that protect surviving spouses.

Beyond validity, the document might need to be updated for practical purposes. Let’s say you moved from New York to North Carolina. You had a will drafted in NY and you named your sister who also lives in NY as your executor. Now that you have moved to NC, your will may still be valid, but your executor now lives more than twelve hours away from you.

         Moreover, when you move, you make changes. Typically, you buy or sell real or personal property, you make new relationships, you become a part of new groups, etc. Your estate plan should be able to account for these changes. If it does not, then it should be updated to fit your new life.

         The best thing to do, if you are moving to a different state, is to have an attorney evaluate your estate plan and make sure it works for you.

Brenton Begley
Elder Law Attorney

As an Estate Planning & Elder Law attorney, I cannot overstate the importance of regular reviews of your estate plan. Many people think of estate planning as a one-time event, something to be done and then forgotten. But in reality, your estate plan should be a living, breathing document that changes and evolves with your life circumstances.

An estate plan is a legal document that outlines your wishes for how your assets will be distributed after you pass away. It can also include provisions for how you want to be cared for in case you become incapacitated, as well as who should make important decisions for you if you cannot make them for yourself.

But even the most well-crafted estate plan can become outdated if you don’t review and update it regularly. Life is full of changes, both big and small, that can impact your estate plan. Here are just a few examples:

• If a loved one dies: If a beneficiary or executor named in your estate plan passes away, you’ll need to update your plan accordingly.
• If you lose, sell, or acquire assets: Changes in your financial situation can have a significant impact on your estate plan. If you sell an asset, you may need to revise your plan to reflect the loss of that asset. On the other hand, if you acquire new assets, you may need to update your plan to include them.
• Birth of new family members: The birth of a child or grandchild is a joyous occasion, but it also means that you may need to revise your estate plan to ensure that your new family members are included.
• Divorce: If you get divorced, you’ll need to update your estate plan to reflect the change in your marital status.
• Changes in tax laws: Tax laws are constantly changing, and these changes can have a big impact on your estate plan. Regular reviews can ensure that your plan is still tax-efficient.

These are just a few examples of the many changes that can impact your estate plan. By reviewing your plan annually (at a minimum), you can ensure that it still meets your needs and reflects your current circumstances.

During your review, be sure to consider the following:

• Are your beneficiaries still accurate?
• Do your estate planning documents still reflect your wishes?
• Have there been any significant changes in your assets or liabilities?
• Are your financial and healthcare powers of attorney still accurate?
• Do you need to make any changes to your tax planning strategies?

If you’re not sure where to start, I encourage you to reach out to an estate planning attorney for help. A knowledgeable attorney can help you navigate the complexities of estate planning and ensure that your plan is up-to-date and meets your needs.

In conclusion, regular reviews of your estate plan are crucial to ensure that it still reflects your wishes and meets your needs. By taking the time to review your plan annually and make any necessary updates, you can have peace of mind knowing that your loved ones will be taken care of according to your wishes.

Greg McIntyre
Estate Planning & Elder Law Attorney