Thread: A Trust
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Old January 5, 2011, 04:06 PM   #7
Poodleshooter
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Join Date: August 7, 2000
Location: Floating down the James River in VA
Posts: 2,599
I'm not a lawyer, so take this with a grain of salt...

Downsides include the fact that you're likely going to be hauling around trust paperwork to prove that you're a trustee or grantor of the trust. Naming it after yourself can be an easy way to mitigate this problem. It also sucks if you name your trust the "Hiram G. Whifflesnafferupagus Revocable Living Trust",and have to engrave that whole thing on your new form 1'd SBR rather than your name "John Doe".

State trust laws vary, but in my state, a successor trustee can be named. Since the NFA item doesn't "leave" the trust until it passes to the beneficiary, there is no transfer needed and no additional Form 4 for it to go to the successor trustee. In theory, when the beneficiary receives the NFA item, it transfers out of the trust on a tax free Form 5 as with any other action of a will from an estate. At that point, the trust ceases to exist. Until that time, the item can remain in the possession of the trust grantor or trustees.
So a trust is a very good mechanism to allow others to inherit your NFA firearms in a legally "safe" manner, provided your state has good laws on trust "self dealing", allowing you to use the NFA item for your own purposes.
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