NFA trust?

[Irishshooter]

What is a NFA trust? What are the benefits? Costs? Do you still have to pay $200 per item if you have one?

 

[jmemmert]

Benefits- Don't have to wait for officer to sign off/fingerprints, anyone in the trust may have access to the items. Easier transfer upon the death of "owner"

Cons: Cost more up front

Yes, still have to pay the $200 tax.

 

[twfshelton]

I'm sure this has been flogged like a dead mule, but couldn't find info in the FAQ. So if I list my wife and son in the trust, any one of us may own the NFA item? Is the trust specific to NFA items or can anything be included like a regular trust? Sorry, I should probably call a lawyer but I have already typed out the questions.

 

[xryan.jacksonx]

When it comes to NFA "ownership" is irreverent. Possession is what matters. If all three of you are listed on the trust, than any of the three of you may posses it.

 

[1371MARINE]

Benefits- Don't have to wait for officer to sign off/fingerprints, anyone in the trust may have access to the items. Easier transfer upon the death of "owner"

Cons: Cost more up front

Yes, still have to pay the $200 tax.

How's the transfer easier upon death? Is it different from the tax exempt heir transfer on form 5?

 

[DownByTheTracks]

How's the transfer easier upon death? Is it different from the tax exempt heir transfer on form 5?

Here's an illustration:

INGO NFA Trust

• Officers:
  • Fenway
  • Que
  • Scutter01

• Property:
  • Huntertown Arms Guardian 22
  • Huntertown Arms Kestrel 556

Legally, Fenway, Que, and Scutter01 can have in their possession either of the silencers listed, because the INGO NFA Trust "owns" the suppressors. So if Fenway dies, the Trust still "owns" the suppressors and Que and Scutter01 can still legally posses them.


If there were not a trust, Fenway would have to personally own each suppressor, and nobody else could "possess" the silencers without Fenway being there. When Fenway dies the Form 5 has to be filed to transfer the can to an heir.

 

[052.5GT]

what are the liabilities? Can a trust be shut down if someone in the trust breaks the law. Obviously you should only have people you trust(lol) on your trust, but things do happen. If not, and the trust is free of liabilities of its members, why not create a huge trust. This would prevent any of the members from having pictures, and fingerprints.

 

[boozoo]

Do trust members all need to reside in the same state? All of the family members that I would name on mine live in Texas.

 

[JoshuaW]

The answer I was given by Grant Liston was "No". I think there is language in there about what to do if a trustee or beneficiary lives in a state where an item is illegal, but you should be good to go to add your out of state family members.

 

[boozoo]

Thanks!


Crap, that means I better go ahead and get one going before my next can gets off of backorder. LOL

I also have my sights set on an MP44 someday when I win the lottery.

 

[CountryBoy19]

I'll try to answer some Q's to the best of my knowledge.

Benefits- Don't have to wait for officer to sign off/fingerprints, anyone in the trust may have access to the items. Easier transfer upon the death of "owner"

Cons: Cost more up front

Yes, still have to pay the $200 tax.

Other benefits:
No certificate of compliance required (minor issue)
No photos required
At one time trusts were being processed faster because the fingerprint didn't need sent to FBI for processing
Can "change" who can possess the items at any time by changing the trustees. So if I my son turns 18 and can possess them now, I just have to add him as a trustee and he can take them without me being present.

I'm sure this has been flogged like a dead mule, but couldn't find info in the FAQ. So if I list my wife and son in the trust, any one of us may own the NFA item? Is the trust specific to NFA items or can anything be included like a regular trust? Sorry, I should probably call a lawyer but I have already typed out the questions.

I would recommend you have a separate trust dedicated to NFA firearms because of the sensitive nature of them.

Here's an illustration:

INGO NFA Trust

• Officers:
  • Fenway
  • Que
  • Scutter01

• Property:
  • Huntertown Arms Guardian 22
  • Huntertown Arms Kestrel 556

Legally, Fenway, Que, and Scutter01 can have in their possession either of the silencers listed, because the INGO NFA Trust "owns" the suppressors. So if Fenway dies, the Trust still "owns" the suppressors and Que and Scutter01 can still legally posses them.


If there were not a trust, Fenway would have to personally own each suppressor, and nobody else could "possess" the silencers without Fenway being there. When Fenway dies the Form 5 has to be filed to transfer the can to an heir.

Not always. If Fenway is the grantor and the trust isn't set up for perpetuity then the trust assets must be distributed to the beneficiarys "in a reasonable amount of time". In that case you still have to do a tax free Form 5.

Now, if Fenway isn't the grantor, then it can remain in place. If the Fenway is the grantor but the trust is set up for perpetuity then even though he has died the trust can continue. Disclaimer: I do not know if IN state trust law allows a trust to be set up for perpetuity.

BTW, should we really be talking about Fenway like this?

Do trust members all need to reside in the same state? All of the family members that I would name on mine live in Texas.

No, they can be in any state. As long as the trust complies with the laws of the state the trust "resides" in the trustees and beneficiaries can be from anywhere.