Is Your Gun Collection a Legacy or a Liability?
You’ve spent years collecting the best firearms available, in the best condition, with the most desirable features you could find. You have learned the true values, sometimes the hard way, of most of the firearms in your collection. You may even remember what you paid for these items in the past. Several collectors may even know the current market for the firearms in their collection and/or some local collectors who may be interested in certain guns…but does your spouse or family have this same knowledge? Generally, it’s rare to find both spouse and/or family members that have the same level of knowledge and understanding of gun values.
The Thrill of Collecting vs. Family Realities
While building a nice gun collection can be very enjoyable, it does require a lot of money, time, patience and sometimes-sheer luck to find just the right firearm. During this process most serious collectors spend hours researching the various models, calibers, rarity, collectability and learn gun values. We do this because this is all part of the hobby and the thrill of the chase. We enjoy finding that one rare gun that fits perfectly in our collection. While we enjoy these things and seem to intuitively remember the various models and caliber variations, our spouse or family may not. They may not have any more interest in this, than I do collecting dolls or watching paint dry.
Firearms as a Financial Investment
Why do we collect anything? While I enjoy the thrill of the chase and appreciate fine firearms, I also collect firearms to be a sounds financial investment. I try to collect guns that keep up with inflation and sometimes exceed it. As with any investment, we want to see it grow into a larger value…becoming a Legacy.
What Is Your Plan for Tomorrow?
To keep your gun collection from being a Liability, what is your plan if you were to die tomorrow? Do you even have a written plan, Will, gun log with the various firearms, serial numbers and values listed? Have you discussed this plan with your spouse, family and Executor of your Estate? We all hope that we will live forever, but none of us are getting out of this alive.
While I’m no lawyer, I’d recommend getting a Will completed by one. Find a lawyer that specializes in Estate Planning and Wills. They can help you navigate the system and ensure that there is an easy transition for your Executor, Spouse, Friends and/or Family when you pass on. They can help you figure out what fits your life situation the best and guide you to get things handled after you die.
Key Estate Planning Questions for Collectors
For example, do you want the collection to be kept intact? Is there someone in your family that appreciates your collection as much as you do? Is there someone that can maintain your collection when you pass away? Do you want to sell off or give away the collection before you die? Should the entire collection be sold off, to be converted into cash for the Estate? Is there a specific firearm that is a family heirloom; that needs to be passed onto the next generation? These are all questions I would want answered before I no longer have the ability to make them with a clear-thinking brain.
The Essential Role of a Will
What does a Will do? It establishes who will be the Executor of your Estate, to handle your personal business after you pass. The Will also says Who will get What, When and How. This provides you a way to speak and control your personal business when you’re gone.
Documenting Your Collection: Creating a Firearm Log
If you have not done so already, start a log of your firearm collection. The log should indicate the make, model, serial number, caliber, rarity and any unusual accessories that go with the firearm like scopes, tools and cases. It is also helpful if you note what was paid for the item when you purchased it, the date when you purchased the firearm and from whom you purchased it from. This helps to guide others as to values when you are gone.
While you are documenting your collection, think about those firearms that have a sentimental value to you. Write these details down now, while you have a clear mind. Was this a firearm that has been passed down through 4-5 generations of your family? If so, it would be nice to document everything you know about the gun so that other family members could truly understand the personal value that the gun has. Is the firearm a personal gift, law enforcement or military duty gun, match winning rifle, etc.? Your family can better understand your connections with these items, if they know more about them.
When and How to Sell Off Your Collection
If you decide to sell off your collection, when is the best time? Generally, I recommend selling off or giving away those firearms that you want to part with before you cannot handle it on your own. Many collectors know who’s interested in like type firearms in their area, understand the legalities of the transfer, know market values of their guns and overall will do a better job of getting the most out of their collections. Further, I get to experience the joy of the gift giving and know that the person who I wanted to see inherit my gun/s have actually received them.
The Risk of Leaving the Burden to Your Family
Some collectors do not want to be bothered with this and plan on allowing their family to deal with this after they are gone. This creates a Liability and burdens the family. In most cases, the family gets 10-50 cents on the dollar when this occurs. These families often fall victim to unscrupulous dealers, collectors and “friends”. Is this a “National Match” M1 Garand or a standard service grade M1? Though they are both M1 rifles, there’s a large variation in value between the two.
Relying on a Trusted Collector Friend
Other collectors sometimes appoint one of their closest collector friends to oversee the selling off or disposing of their firearms. This works well as long as the person is honest, knowledgeable, has the time and ability to manage the collection. Depending on the size of the collection, this can be very time-consuming. Even friends should be compensated for this service due to the time involved.
Using Gun Dealer Consignment Services
In the event that the collector doesn’t make their own arrangements before death, or they do not want the hassle of selling everything off, some gun dealers offer a consignment service. The dealer inspects and examines the firearm/s, conducts light cleaning and minor repairs, appraises the gun for what they believe the firearm will sell for, markets and sells the gun, completing the necessary paperwork and background checks. Generally, the dealer collects a fee for this service. Most dealers charge around 20%, of the selling price, for this service.
The advantage of the dealer/consignment arrangement are numerous. The firearm is inspected and evaluated by someone who is knowledgeable in the firearm function and current market pricing. The dealer has a steady flow of customers coming into their store, looking for guns to buy every day. The dealer has a vested interest in getting the most out of the item/s being sold because of the commission, yet they still have to keep in mind a fair price for their customer…otherwise the item does not sell. It’s convenient for the person who consigns the firearm, saving them time. The owner or Executor no longer has a responsibility legally or criminally, since it was left with an FFL dealer who is required to properly transfer the firearms.
Final Thoughts: Legacy or Liability?
Hopefully, this has given you some things to think about in regards to your gun collection and overall Estate Plan. Since everyone’s situation is different, there are no absolutes. Only you can decide whether your collection will be a Legacy or a Liability.
