Suppressors NFA trust questions

[Ape_Factory]

Trying to wrap my head around a trust and make sure I understand it correctly. I currently own an SBR and silencer both with their individual tax stamps. I'm adding two more suppressors soon. I do not have any sort of trust.

Is it correct to say, in a nutshell, a trust allows trustees listed to take possession of NFA items if something should happen to me, correct? Theoretically, what about a scenario where I am not home, a trustee is, and I've forgotten to lock up said NFA item? Are they covered?

Additionally, if I purchase a trust, am I able to add all NFA items I may currently have or may add in the future or is it best to purchase the new items, receive them and then do a trust? I saw a reference to the "down time" where it's safe to add additional items but I'm not clear how that actually works.

I'd like to add my wife and an out of state family member to the trust. From what I've read, they do not need to provide fingerprints. Does that change if I add new items?

Thanks in advance.

 

[alamo5000]

Think of a trust as a company. Anyone that is listed as an officer of the company has authority to do stuff. Otherwise no.

If the CEO dies he can be replaced to carry on the functions of the company.

If the CEO dies the corporation cannot take his personal belongings though.

If you have a suppressor under your personal name a trust won't have anything to do with it.

 

[Ape_Factory]

I can't transfer existing items under my name to the trust? I need to create the trust first? And if I create a trust, all new items can be added to the trust if they are purchase after the trust's creation?

 

[hlee]

An heir can use a form5 to transfer an NFA item into their name- tax free.

You can transfer an item from you to your trust, but will incur a $200 transfer tax.

Everyone on the trust must submit fingerprints for every new addition to the trust.

 

[Zak Smith]

I can't transfer existing items under my name to the trust?

You can for $200 each and a Form 4.

 

[Ape_Factory]

You can for $200 each and a Form 4.

Thanks Zak and glee, appreciate the answer, that clear it up for me. Not a fan of paying an additional $200 stamp! So lesson learned, get trust first THEN purchase NFA items.

 

[Crabcore]

also, every trustee will need fingerprints. If you read old discussions about this, that was not the case. The rule changed a couple years back. Definitely buy the new cans with the trust. Otherwise, you have to pay another tax stamp to transfer them from you to your trust.

 

[Ape_Factory]

I should have clarified that, purchasing the two new ones with the trust instead of individual.

 

[Snuby642]

Yes to first 3 questions.
The last out of state question is not as simple you have to notify nfa of out of state travele.

We use law shield for legal protection and trust matinence

 

[Snuby642]

Also I don't remember doing additional form 4 or form one to add interest to trust.

 

[db2000]

An heir can use a form5 to transfer an NFA item into their name- tax free.

You can transfer an item from you to your trust, but will incur a $200 transfer tax.

Everyone on the trust must submit fingerprints for every new addition to the trust.

You can amend the trust and remove their names prior to adding items to avoid everyone having to be fingerprinted. They can be added back later. This is what I was told and did through my attorney. I haven’t actually added them back yet though.

 

[Fred @ Bison Tactical]

I like a single trust per item these days. It makes management of individual NFA items a lot easier over the longer term - rather than lots of NFA items in a single trust.

So:

NFA Item 1 = Trust 1 = Trustee 1, Trustee 2, Trustee NNN
NFA Item 2 = Trust 2 = Trustee 1, Trustee 2, Trustee NNN

This way its very easy to distribute the NFA items later with little impact to other NFA items. If you always submit the trust first with just (1) responsible person, then there is never a need to fingerprint anyone besides the responsible person, and the process of Trust background checks at the ATF is always just (1) background check, so no different than an individual (time wise).

With Silencer Shop doing the Single Shot Trust for $25, its also pretty inexpensive....

 

[mewillis]

Don't forget also, every time you re-state your trust by adding/removing co-trustee's ie; "responsible persons" you must submit the entire trust to the ATFE including the Schedule A. So adding co-trustee's and removing them each time you put an NFA item in your trust may become a pain in the ass. But you have 24 months to do it so not as bad as it may seem.

Page 6 of the form 4 as example;

(4) Documentation of entity existence:
(a) If the transferee is other than an individual, the transferee must
attach documentation evidencing the existence and validity of
the entity, which includes complete and unredacted copies of
partnership agreements, articles of incorporation, corporate
registration, declarations of trust with any trust schedules,
attachments, exhibits, and enclosures.
(b) If the transferee entity has had an application approved as a
maker or transferee within the preceding 24 months of the date
of filing this application, and there has been no change to the
documentation evidencing the existence and validity of the entity
previously provided, the entity may provide a certification that
the information has not been changed since the prior approval and
shall identify the application for which the documentation had
been submitted by form number, serial number, and date
approved.
(5) If the transferee is other than an individual, each responsible person of
the trust or legal entity (see definition 1e) must include a completed
ATF Form 5320.23, National Firearms Act (NFA) Responsible Person
Questionnaire, with the submitted Form 4.