Gun Trust Issues Using Quicken Willmaker

Possible Problems Using Quicken Willmaker For A NFA Gun Trust

Below are some issues that can arise from using Quicken Willmaker to create a gun trust for NFA purposes. Although many have successfully used Quicken Willmaker to create a NFA Gun Trust subsequently approved by the BATFE, potential flaws can still exist. Most of these potential problems can arise at the time of distribution, not when the trust is initially submitted to the BATFE.

Quicken Willmaker Trust Issue Consequences
1 The software lacks free updates to address new laws or changes in trust laws. Up to date information is necessary to create a valid, viable trust. Invalid trust could be created, thereby opening up for potential civil and criminal liability.
2 There is no attorney to review the final product to ensure it meets the creator’s requirements. This puts the onus on a layperson to understand what the trust says and does, without a legal education or experience. This can result in an invalid trust or illegal transfers.
3 Quicken can often require you to register your trust with the court. There is no need for this. This can result in wasted time and money for something that isn’t necessary or even possible.
4 Quicken’s software does not and cannot provide legal advice. No two people are in the same situation or circumstances. Don’t trust your expensive Class III firearms and items to a cookie-cutter program designed for the lowest common denominator. Get custom legal advice from an experienced lawyer. Quicken has ZERO provisions for dealing with possession and transfers under the NFA. Failure to comply with the NFA’s and BATFE’s requirements can result in civil and criminal liability.
5 Quicken can require that the trustors take income from the trust annually. This is unnecessary in an NFA trust. This creates a potential probate issue subject to taxation.
6 Successor trustee provisions are limited, especially for the last successor trustee who wishes to appoint someone new. The court can appoint a trustee, but this can result in someone not acquainted with Class III/NFA issues. A trustee not aware of NFA issues could illegally transfer NFA items, thereby resulting in forfeiture and possible civil and criminal penalties.
7 Incapacity. Quicken allows a person to decide incapacity instead of a doctor, conservator, or guardian. This makes it easy to declare you incapacitated and remove you from the trust. Trustor could be removed from trust and not able to use NFA items.
8 Quicken does check the names of the beneficiaries versus the trustor/trustees, but this is usually only the exact names. Failure to properly identify the right parties can result in an invalid trust.
9 A Quicken trust can void a gift to a beneficiary if that beneficiary dies within 120 hours. This may not be a desired result. A minor issue, but a voided gift can occur when not intended.
10 Quicken allows for the revocation of the trust if one of the trustors dies. A properly formed revocable living trust becomes irrevocable when the trustor dies. But Quicken can allow amendments after the death of a trustor. This makes no sense and can result in illegal possession or transfer of NFA firearms. Illegal possession or transfer of NFA items can occur.
11 The trustee is not permitted to use the assets of the trust. A trustee who uses the Class III NFA firearms would be devaluing the trust property and creating civil liability. A custom trust can address this issue. Beneficiaries could potentially sue trustees for devaluing the trust property by using it.
12 If there is a combination of trusts, Quicken fails to make the trust the surviving instrument. A custom trust can assure that the NRA trust and language survives if it is combined with another trust. NFA Trust language removed when combined with other trust(s), thereby removing important information and opening up liability.
13 If you die with debts, a Quicken trust will permit the sale of your Class III firearms to pay the debts. This may not be a desired result. A custom trust can address this issue. NFA Trust items sold off to pay debts, instead of going to beneficiaries.