Q My uncle has tapped me to be his trustee when he goes. I feel confident about most of what I will need to do but have some concerns about his “collectibles.” Uncle Marty has a gun collection, a wine cellar with what I understand are super expensive bottles, “trophies” of animals and an ivory collection. I can’t get into some of the other stuff because I think it might be illegal. What is a good approach to deal with this stuff? What should I do now to prepare for later?

A Uncle Marty sounds like a unique and interesting guy! You are smart to begin to explore how his unique personal property should best be handled when the time comes. You have time to prepare for the transfer or sale and collect the necessary paperwork and information to put you in the best position to handle items properly. Remember, you as trustee can be held personally liable should you make a mistake in how and to whom you distribute certain items.

The first thing to do about the gun collection is to check the registrations. Ask your uncle for the registrations for any weapons that must be licensed. If a gun is unregistered or if a firearm is considered “exotic” according to federal law, you will need to meet current state and federal requirements which may include registering the weapons or surrendering them to law enforcement. Exotic guns can include machine guns, “sawed off” guns, silencers, mortars and “pen” guns.

Once the registration question has been addressed, you have additional issues to consider. Will you be giving the gun to a beneficiary of the trust? Does the beneficiary live in another state and, if so, what are the laws of the beneficiary’s own state and what laws pertain to transporting the gun across state lines? You also need to confirm the intended recipient of the gun has the legal right to receive or own a weapon. Finally, work with a Federal Firearms License holder (FFL) to legally transfer a registered weapon. Gun shops are FFL locations.

When a decedent is leaving a collection of rare wine or only a few special bottles, special consideration should be given to how these will be handled after death. For example, if a bottle of Borges Sercial Madeira is to go to a favorite niece, make sure of two things; First, is the niece of legal age to receive alcohol and second, is it legal to distribute alcohol without a license. If your niece is not of age, consider placing that outstanding bottle in the custody of a trusted adult who will pass it on to her when she reaches the appropriate age. Some states prohibit the transfer or distribution of alcoholic beverages without a license and the definition of “distribute” can be vague so check with your attorney to see if there are any restrictions in gifting alcohol from your uncle’s estate.

The Endangered Species Act of 1973 along with other laws and treaties restrict ownership and trade in products derived from endangered species which can include ivory, mounted birds or animals, feathers, eggs and nests. Check with your uncle to see if he has paperwork establishing the legal provenance for artifacts that are on the endangered list. With legal provenance, you can (usually) transfer these types of property to beneficiaries.

Because it violates federal law to “deliver, receive, carry, transport or ship” plants or animals that are protected, absent clear documentation, you should use caution in handling such items. Consult with a qualified expert to determine whether they should be distributed to beneficiaries or surrendered to authorities.

Trustees or executors can encounter illegal drugs or other contraband when attending to the personal property of a decedent. Normally, the appropriate course of action would be to immediately report the find to the police but a trustee needs to be careful. Some federal and state laws allow for the seizure not only of contraband but of the property containing the contraband, as well. So, if you were to report it to law enforcement, you could endanger the other assets of the estate. A trustee has a duty to protect trust assets so consult with your legal counsel should you find contraband.

Finally, because of strict money laundering laws in our country, large cash transactions can come under scrutiny and banks are required to report cash deposits in excess of a certain amount. In no way, however, should this deter a trustee from depositing the cash immediately nor should the trustee consider breaking up the cash and making smaller deposits over a period of time. This latter activity is called “structuring” or “smurfing” and is in direct violation of the United States Bank Secrecy Act. If the trustee makes a large deposit of cash and fully answers any questions the bank officer may have, all should be fine.

Most trustees will not encounter large amounts of cash, artifacts or illegal drugs but, if you do, handle them carefully — California prisons are overcrowded as it is!

Liza Horvath has more than 30 years of experience in the estate planning and trust fields and is the president of Monterey Trust Management, a financial and trust Management Company. This is not intended to be legal or tax advice. If you have a question call (831) 646-5262 or email liza@montereytrust.com