Firearms in Estate Administration: Legal Issues, Executor Liability, Transferring Title I and II Guns, Penalties

The administration of an estate holding firearms can cause increased expenses, fees, taxes, and potential liability if mishandled. Managing guns within an estate requires an in-depth knowledge of various federal and state regulations to avoid excessive fines and criminal liability.

The National Firearms Act encompasses strict prohibitions and restrictions on the transfer of certain firearms. Prohibited possession can be actual or constructive, with zero tolerance for inadequate processes in the acquisition. Also, state laws will apply to transfers or sales of firearms within their jurisdictions. Compliance with federal and state laws becomes more complicated if there is an out-of-state transfer or sale of a gun.

Estate planners and executors must be mindful that some beneficiaries may be ineligible to receive firearms and consider alternative methods to align with a client's intent, such as naming alternate recipients or creating a gun trust. Trusts can legally hold firearms, allow a trustee to lawfully possess firearms, and minimize administration issues regarding the transfer or sale of firearms during probate.

Listen as our panel discusses the classification, ownership, and transfer rules applicable to firearms, the creation and use of gun trusts, and other planning methods to ensure the proper administration of an estate holding firearms.