Ok, so I have established a Trust

[pneuby]

The regular kind, not just for the purpose of Title II fun.
But, I just now recalled there is some advantage in doing this?
Is it for any kind of fun? Cans, FA, SBR/S, etc?

Enlighten me. Thanks.

 

[TacMedic]

I think one of the greatest benefits is that the NFA items are not assigned to a specific individual but to everyone who is in the trust. This allows that if something happens to one individual in the trust, the other members are allowed to maintain the weapons, cans etc. in the trust.

I’m sure there are many other benefits but this was my main reason.

 

[mock0013]

if you pass, the trustees can take possession of the items without having to apply for new tax stamps and the wait while you pay a gun shop to store them. The new silencer shop Kiosks can make single trusts for NFA items and you might find that a better option than your regular trust. If you do any Form 1 you will have to have items engraved with trust name. Best to keep that simple with Gun in the trust name. I'm not a lawyer so contact one before heading my advice.

 

[AZ Husker]

There is a difference between a family trust and an NFA trust. You cannot include NFA items in your regular trust. I tried. Everything I own is in my family trust, including firearms, except NFA items. I'd strongly suggest if you get an NFA trust you name your loved ones as Trustees, not Beneficiaries. They will have to be fingerprinted and have the same power as you. Later after your death they can add Trustees of their own. If you do only name them as Beneficiaries and something happens to them, it is no longer valid.

 

[YNOTAZ]

YES, as people have said keep NFA item out of your family trust and start a trust for NFA items only.

Keep in mind with the new rule, 41F (if I recall correctly) you have to supply a fingerprint card and passport photo for all “responsible” Parties. Those are people named individually or particularly in the trust who have control of NFA items while in the trust. Depending on how the trust is written that would be all co-trustees and anyone defined in the trust to handle trust assets.

Two tricks, and #1 is important

1. keep the name of the trust simple, especially if you are doing any Form 1 items like SBR, SBS, Suppressors. You have to have the items engraved and it is a lot easier and neater to engrave an SBR TJT NFA RLT rather than Thomas, James, Thompson Revocable Living Trust, but use the initial RLT in the trust name so the ATF doesn’t go crazy over you using an unapproved abbreviation.

2. If you don’t want to go through the hassle of multi-fingerprint and multi-passport or maybe your relatives live in other states and it’s just hard to do. This is a trick that suppressor manufacturer’s are doing:

Make a master NFA trust with all the trustee you want, your wife, your 5 children, your 7 grandchildren, etc, with all normal NFA restrictions.

Then use the same template to set up sub trusts, one for each item, naming the trust, the manufacturer/serial number of the item, like Colt123456 and another trust named Silencerco98765. This trust has only 1 trustee, you. When you die anything in this trust is left to the master trust. That way each of your NFA items has it’s own trust and the master trust is the beneficiary. All you need is one fingerprint cart and one passport photo. There is no expense when you copy/paste the trust documents, just changing the name and the asset and you don't have to file anywhere except sending a copy in with your form 4 or form 1.

I’ve seen item 2 done hundreds of times to get around the 41f rule about responsible parties but I’m not a lawyer, just advising on something that is working so far.

 

[pneuby]

Well, since I got the good-ole RLT , family-type, I guess it's a moot point now. Thanks for the fantastic breakdown, all.

 

[YNOTAZ]

You can set up a second trust for the NFA items. That's very common and what I did. As you can see by my example above some people have a trust for each NFA item, so having several trusts is not a bad thing.

 

[Geekmedic]

I hadn't heard that strategy before. Great stuff YNOTAZ thanks!

YES, as people have said keep NFA item out of your family trust and start a trust for NFA items only.

Keep in mind with the new rule, 41F (if I recall correctly) you have to supply a fingerprint card and passport photo for all “responsible” Parties. Those are people named individually or particularly in the trust who have control of NFA items while in the trust. Depending on how the trust is written that would be all co-trustees and anyone defined in the trust to handle trust assets.

Two tricks, and #1 is important

1. keep the name of the trust simple, especially if you are doing any Form 1 items like SBR, SBS, Suppressors. You have to have the items engraved and it is a lot easier and neater to engrave an SBR TJT NFA RLT rather than Thomas, James, Thompson Revocable Living Trust, but use the initial RLT in the trust name so the ATF doesn’t go crazy over you using an unapproved abbreviation.

2. If you don’t want to go through the hassle of multi-fingerprint and multi-passport or maybe your relatives live in other states and it’s just hard to do. This is a trick that suppressor manufacturer’s are doing:

Make a master NFA trust with all the trustee you want, your wife, your 5 children, your 7 grandchildren, etc, with all normal NFA restrictions.

Then use the same template to set up sub trusts, one for each item, naming the trust, the manufacturer/serial number of the item, like Colt123456 and another trust named Silencerco98765. This trust has only 1 trustee, you. When you die anything in this trust is left to the master trust. That way each of your NFA items has it’s own trust and the master trust is the beneficiary. All you need is one fingerprint cart and one passport photo. There is no expense when you copy/paste the trust documents, just changing the name and the asset and you don't have to file anywhere except sending a copy in with your form 4 or form 1.

I’ve seen item 2 done hundreds of times to get around the 41f rule about responsible parties but I’m not a lawyer, just advising on something that is working so far.