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NFA Trusts. Why? What are the benefits?
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Author:  Polka_Dot [ Mon Mar 20, 2017 4:50 pm ]
Post subject:  NFA Trusts. Why? What are the benefits?

Hello!
I have a simple question - why would one want to establish an NFA Trust?
I am aware that it simplifies some activities/actions for other named-Trustees, but what else?
In a situation of buying a new firearm, and if one has a trust set up, does the Trust "buy" the firearm? Who is the background check performed against?
Just trying to understand the Pros/Cons of an NFA Trust.
Thanks!

Author:  chowser51 [ Wed Mar 22, 2017 4:26 pm ]
Post subject:  Re: NFA Trusts. Why? What are the benefits?

I will give this a shot. Someone will come along and correct my inaccuracies.

For me, an NFA Trust (pre-41F) was easiest for me to get suppressors and sbrs. The chief LEO of the city I lived in would not sign off and I'm not allowed to use my own chief (and I would never reside in the town I work for).

So the NFA trust allowed me to buy suppressors and make SBRs. As the trustee, I would still do the form 4473 when the item transfers to me.
The trust also allowed cotrustees to have access to my stuff without me being present. My brother is a cotrustee. He can come and take my suppressors or sbrs and use them without me being there. If one of my coworkers wanted to try one, I (or my brother) would have to be present.

My kids are in my trust as beneficiaries and all my items will transfer to them upon my death.

So pre-41F, the NFA Trust allowed you to skip fingerprinting and CLEO signoff.

Post 41F, trustees must send in fingerprints and there is no CLEO signoff, just a notification. I moved recently and the chief of my new residence city is more gun friendly and has signed off for others but I already had the trust so I kept using it to buy stuff. I got stamp #14 in a week before 41F went into effect.


Also sort of related, a trust is also a nice place to put your assests into. After my last lawsuit, (we won, but still) everything I own will be in a trust. My next house, my cars, etc. I will not be easily found or have people coming after my assests if I'm sued again.

Author:  pps_dad [ Fri Mar 24, 2017 2:05 pm ]
Post subject:  Re: NFA Trusts. Why? What are the benefits?

Biggest thing for me is the beneficiaries...if you don't have a trust anything that falls under the NFA weapons can not be transferred to your children, spouse, etc...upon your death.

Author:  JustaShooter [ Fri Mar 24, 2017 2:17 pm ]
Post subject:  Re: NFA Trusts. Why? What are the benefits?

pps_dad wrote:
Biggest thing for me is the beneficiaries...if you don't have a trust anything that falls under the NFA weapons can not be transferred to your children, spouse, etc...upon your death.

As I understand it, you actually can with the proper forms.

Quote:
firearms may be transferred on a tax-exempt basis to a lawful heir. The executor would apply on ATF Form 5, Application for Tax Exempt Transfer and Registration of a Firearm, for a tax-exempt transfer to a lawful heir. A lawful heir is anyone named in the decedent’s will or, in the absence of a will, anyone entitled to inherit under the laws of the State in which the decedent last resided. NFA firearms may be transferred directly interstate to a beneficiary of the estate.


https://www.atf.gov/firearms/docs/trans ... s/download

Author:  JediSkipdogg [ Wed Mar 29, 2017 2:03 am ]
Post subject:  Re: NFA Trusts. Why? What are the benefits?

pps_dad wrote:
Biggest thing for me is the beneficiaries...if you don't have a trust anything that falls under the NFA weapons can not be transferred to your children, spouse, etc...upon your death.


You can do it with an LLC as well. With an LLC as long as the children/spouse have the power to modify the LLC (written in the bylaws) then they can just remove you and add their children. With a trust, they would need to set up a new trust as once you are dead, the trust does not continue on forever.

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