Wills, Trusts & Estates Prof Blog

Editor: Gerry W. Beyer
Texas Tech Univ. School of Law

Sunday, April 7, 2019

Court Holds That a “Gun Trust” can Hold Other Assets

GuntrustIn Estate of Keener, a Texas court of appeals in Corpus Christi found that a trust created under the National Firearms Act can hold and transfer other assets besides guns, silencers, and other gun accessories. The court found that "trust documents also did not limit the purpose of the trust or state that it was intended to only hold firearm-related property."

Two heirs to a testator had filed for heirship and the beneficiary of a gun trust established by the testator had filed for an intervention. The trial court denied the plea for intervention and the beneficiary appealed. The beneficiary alleged that he was the owner of the property that the heirs sought to inherit because the settlor placed the disputed property in the trust and pointed to Schedule A of the trust. 

The appeals court found that the lower court had erred by not following controlling precedent. The higher court also found that there was a fact issue pertaining to the overall property in the trust and whether Schedule A added any property to the trust. As a beneficiary of the trust, the appellant was an interested person under Texas Estate’s Code and had a justiciable interest in the proceeding.

See David Fowler Johnson, Court Holds That a “Gun Trust” can Hold Other Assets, Texas Fiduciary Litigator, March 21, 2019.

Special thanks to Jim Hillhouse (Professional Legal Marketing (PLM, Inc.) for bringing this article to my attention.

https://lawprofessors.typepad.com/trusts_estates_prof/2019/04/court-holds-that-a-gun-trust-can-hold-other-assets.html

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