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 Gun Trust - Criminal / Financial Liability For Crimes? 
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Committed with trust property?

I haven't seen this question answered in any of the online research I have been doing. Does anyone know if a trustee or co-trustees can be held liable for a crime committed with trust-owned property?

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Last edited by Chip on Mon Jul 04, 2016 4:00 pm, edited 2 times in total.



Mon Jul 04, 2016 3:19 pm
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Crime committed by whom? By a Trustee, a Beneficiary, the Grantor or by someone who isn't listed in the trust documents such as a thief?


Mon Jul 04, 2016 3:31 pm
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Well, I hadn't thought of the thief angle. Maybe not impossible, but I'd think it would be pretty hard to be liable in that scenario, just like it is for privately owned firearms. I was thinking of a crime committed by a trustee / co-trustee, and either criminal or financial liabilities that could arise.

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Mon Jul 04, 2016 3:59 pm
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If a person who was permitted to use the NFA weapon by the Trust used it in a crime, the Trust would be potentially be liable for providing the weapon, especially if the person in question would have otherwise been prohibited from lawful possession. Just like you , individually, would have the potential to be criminally and civilly liable for providing someone else a Title1 firearm from your personal collection if they went and used it in a crime.

Creating a separate Trust for each NFA item would limit the Trust's liability. They're free to create so why not?

Also....don't put people on your Trust whom you wouldn't trust with all your worldly possessions and finances if you're going to be allowing them use of your NFA weapons.

I have family members listed on mine and trustees, primarily to execute the trust if I pass away. They also have no clue what my Trusts own nor do I plan to ever let them borrow any NFA weapons.


Mon Jul 04, 2016 4:13 pm
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Interesting idea, separate trust for each item...

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Mon Jul 04, 2016 5:12 pm
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lamrith wrote:
Interesting idea, separate trust for each item...


Im up to 6 trusts :thumbsup2:


Mon Jul 04, 2016 5:40 pm
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Thanks for the feedback. I agree about the trust level required.... before I put someone in my trust!

In my situation I might consider appointing someone as a trustee that other trustees are not closely acquainted with. So I don't expect my level of trust to be immediately granted by the others. If they want to know what a worst case scenario would be, I'm trying to figure out if any/all trustees could be personally liable for any/all actions undertaken by the trust. Or is the limit of the liability held to the assets of the trust?

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Mon Jul 04, 2016 7:58 pm
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Chip wrote:
Thanks for the feedback. I agree about the trust level required.... before I put someone in my trust!

In my situation I might consider appointing someone as a trustee that other trustees are not closely acquainted with. So I don't expect my level of trust to be immediately granted by the others. If they want to know what a worst case scenario would be, I'm trying to figure out if any/all trustees could be personally liable for any/all actions undertaken by the trust. Or is the limit of the liability held to the assets of the trust?


In theory, the liability would be in the trust and the responsible individual who provided the weapon/access to the weapon to the other trustee IF they were aware there may be criminal intent , and not on the other appointed trustees. Who may not even know the grantor, theres no requirement that you list people you know as trustees, they could be random people you pulled from facebook or yelp reviewers you like. Any attorney listing all the trustees in a suit based on the actions of one trustee would look like an imbecile in front of a jury/judge if they were just randon names :ROFLMAO: But Im not a legal professional or sitting on the jury at the trial so ......who knows how itd pan out. Lots of variables .


Mon Jul 04, 2016 10:28 pm
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My main theoretical scenario might be more like an accidental shooting / death, could even be at a range like what just happened with a father & son. But if the injured party, or their family, was to go after the owner of the weapon, which could include the trust, could my aging father co-trustee end up financially responsible for my accident? I am the grantor / trustee, and the person who has a potential issue with use of trust property, but can the co-trustees end up on the hook? I'm not sure I want to put anyone in that position for the small advantage of being able to possess / use the trust property once in a great while.

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Tue Jul 05, 2016 7:44 pm
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I had the chance to consult with an attorney as I set up my trust today. His take on the liability issue I described of an accidental injury or death caused by trust-owned property, and a resulting lawsuit against co-trustees, was that:

1. He had not heard of any instance where something like that had happened. Not saying it couldn't, but there's no history to look at.

2. It would be very difficult to hold co-trustees accountable for how trust property is handled, especially since in many states a co-trustee can be added to the trust without the knowledge or consent of the co-trustee.

So liability should only rest on the grantor of the trust, unless one of the other scenarios described comes into play - giving a trust item to someone who should be prohibited from having it, etc.

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Wed Jul 06, 2016 9:48 pm
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