Separate trusts should be created for the protection of one's home and any firearms owned.
A separate trust established just for holding firearms is a great idea because guns and vehicles are the deadliest and lawsuit heavy assets anyone can own. All weapons can go into a standard Bulletproof Trust, setup as an Operating Trust. It is a good idea to separate non-NFA and NFA firearms into separate trusts.
The same is done for one's home. **It should be noted that one will also need to apply for a new EIN for one's home trust if one's property is mortgaged. One will need to use a new bank account to make the mortgage payments out of. A new operating trust account will need to be opened in the home trust name with this newly established EIN. This is not needed for the gun trust as no banking transactions will occur. This process should be repeated for any additional properties one may own. It is recommended that each property has a separate trust established.
One will also need to prepare a Private
Security Agreement and a UCC-1 (non-filed) stating that the operating trust is a debtor
to the pass-through trust in order to fully protect these assets. This
way one is "transferring" the guns and home out of the public
entity (operating trust) into the pass-through trust.
Keep the UCC-1 and PSA with the trust docs for safekeeping.
In conclusion, the steps are as follows:
1. Print/sign firearms trust document (use operating trust
template in Sec. 2 of BPTS)
2. Print/sign home trust document (use operating trust
template in Sect. 2 of BPTS)
3. Apply for a new EIN for the home trust only.
An EIN is not necessary for the gun trust as it has no banking transactions
are required.
4. Print/sign Private Security Agreement and UCC-1 stating
that the firearms trust is a debtor to the pass-through trust (already
created). Keep both documents with all trust paperwork for safekeeping. Do NOT
file the UCC-1 with the state at this time.
5. Print/sign Private Security Agreement and UCC-1 stating
that the home trust is a debtor to the pass-through trust. Keep both documents
with all trust paperwork for safekeeping. Do NOT file the UCC-1 with the state
at this time.
6. Open a new bank account for the home trust to continue to make the mortgage payments. One will need to apply for a new EIN with the IRS under the name of the home trust.
7. Prepare a Quit Claim Deed transferring the real property to the home trust and record in the public records.