While we recommend revocable gun trusts in most situations, there are situations where an irrevocable gun trust might be the best option for a client. Specifically, with a revocable trust, a judgment creditor can attach to the assets of a revocable trust because the settlor/grantor can revoke the trust at any time. However, with an irrevocable trust, the settlor/grantor, alone, cannot revoke the trust. Hence, the assets are protected from judgment, which may be beneficial to professionals who are exposed to malpractice suits and other judgments.
So when can an irrevocable trust be modified? Per 20 Pa.C.S. 7740.1, “A noncharitable irrevocable trust may be modified or terminated upon consent of the settlor and all beneficiaries even if modification or termination is inconsistent with a material purpose of the trust.” (emphasis added). Unlike in a revocable trust, a irrevocable trust requires that the beneficiary(ies) agree to the modification or dissolution of the trust. Hence, where a judgment creditor proceeds against a settlor/grantor, the settlor/grantor’s consent is not solely sufficient to modify the trust. (For those who don’t understand the interplay, a judgment creditor can enforce his/her/its judgment against the settlor by forcing the settlor to consent to the modification in a revocable trust, because the Court’s view the settlor/grantor’s revocable control as the assets still belonging to the grantor/settlor. However, the judgment creditor cannot force the beneficiary(ies) to consent. Thus, an irrevocable trust will protect the assets).
HOWEVER, in opting for an irrevocable trust, you must be cognizant that your beneficiary(ies) may not agree with your future modifications. In that scenario, you will be unable to modify your trust. Even in scenarios where your current spouse is the beneficiary (or even child for that matter), please remember that 50%+ of marriages end in divorce and some children do grow up to resent their parents. The decision to use a irrevocable trust should not be decided in haste.
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Published by Joshua Prince, Esq.
With our 2nd Amendment rights being attacked at both the Federal and State level, and the ATF (Burea of Alcohol, Tobacco, Firearms, and Explosives) trying to close down FFLs (Federal Firearms Licensees) for minor infractions while making FFLs the scapegoat when the ATF's records are inaccurate, I want to taking this opportunity to introduce myself. I am one of only a handful of attorneys across the US that practices in the niche area of law known as firearms law. I decided to concentrate my legal practice on firearms law not only because I am a shooter and firearms enthusiast, but also to ensure that our inalienable Right to Keep and Bear Arms is never encroached upon.
I handle cases at the Federal and State level for both FFLs and individuals. At the federal and state levels for individuals, I actively defend the 2nd Amendment of the US Constitution and Section 21 of the PA Constitution, as well as, help individuals with:
- License to Carry Firearms Denials;
- Challenges to Erroneous PICS Denials;
- Relief from Firearms Disabilities;
- Estate Planning Advice;
- Gun/NFA Trusts; and
- 42 USC 1983 Actions for Deprivation of Civil Rights
At both the state and federal levels, I represent FFLs and SOTs throughout Pennsylvania and the US regarding:
- ATF Compliance Inspections;
- Warning Letters and Hearings;
- FFL Revocations;
- Corporate Structure Advice
- Indoor/Outdoor Range Implementation; and
- Forfeiture Proceedings
In following my love for firearms and firearms law, I have taught several Continuing Legal Education (CLE) seminars on Firearms in Estates and Trusts and Firearms Law 101 for several Bar Associations, including Berks, Cumberland, and Dauphin Counties. I also planned and taught several Firearms in Estates CLE classes for the Pennsylvania Bar Institute (PBI).
While at Widener Law School, I was a member of the Widener Law Journal. I wrote an article on the Inaccuracy of the National Firearms Registration and Transfer Record (NFRTR). I also had an article published on Fee Disputes in Workers Compensation cases in the Widener Law Journal, Volume 18, No. 2.
You can often find me posting on several internet forums, including Subguns, Uzitalk, AR15, and PAFOA. I also hold PA Firearms Law classes for local ranges to inform the public on the firearm laws of the Commonwealth.
Following in my father's footsteps, I am also a Board member for the Pottstown Police Athletic League (PAL).
View all posts by Joshua Prince, Esq.
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