Schedule A question

banger · August 13, 2013, 08:55 PM

On my NFA trust, I want to change the bank account funding the trust. What's the best way ? Shall I simply remove the old account and replace with the new one. Or, leave the old one on the schedule A with a comment that it is no longer valid while adding the new one ?

JustinBiscuit · August 13, 2013, 10:04 PM

I don't list or even have a "funding" account for my trust. I am not an expert or a lawyer but I think the ATF cares how you pay for your NFA items.

kimbershot · August 14, 2013, 07:13 AM

i have a trust in sc--i have no accounts associated with the trust. trust very simple and complies with state guidelines. i was approved for a sbr build--paid for tax stamp with a money order that i signed as trustee. it ain't complicated.

banger · August 14, 2013, 05:36 PM

It's my understanding, in my state, a trust must be funded to be valid. I don't have the option of my trust not being funded.

If anyone has any insight or opinion on my original question of changing bank accounts as it would be documented on my schedule A, I appreciate your comments.

Coach Z · August 14, 2013, 06:46 PM

Sorry can't say as this has come up with my trust, I'd suggest asking whomever setup the trust for you. They should be well versed in appropriate regulations etc.

It seems that if you setup the new one before canceling the original then you never would have broke the trust being funded...

Bartholomew Roberts · August 15, 2013, 03:56 PM

Banger, you are correct that trusts must possess property at the time of their creation in order to be valid. That property can be cash, ammunition, rifles, etc. the nice thing about a bank account is it offers a nice, verifiable way to prove the trust was funded at its creation in a way that is admissible.

As to what the best way would be, that is really a question for whoever drafted it. A trust is a complete document. Depending on how it is written, changes in one part of the trust may have unintended effects on the other aspects of the trust.

balyon85 · August 15, 2013, 11:28 PM

Don't you just use a "revised"schedule A as you would when the nfa item comes back approved and is added to the trust?

banger · August 17, 2013, 02:02 PM

After reviewing my original post, I see I could have been a lot clearer. Allow me to restate my question....simply put, when you remove an asset from the trust's schedule A, regardless if it is funding, a rifle, or etc., is it better to completely remove the item off the schedule A, or leave it on with a notation that it is has been removed from the trust ?

boltomatic · June 20, 2014, 09:01 AM

Please don't listen to what others are saying about not needing a bank account. Just because people aren't getting in trouble for it now doesn't mean they won't in the future. All we need is some psycho to shoot up a school with a suppressed gun and the NFA will come under intense scrutiny and that's when all those minor violations people have made will be discovered.

Considering how easy it is to open the account, there is really no reason not to do it.

As for your original question, schedule A's are not ideal, if possible you should contact your lawyer and have the schedule A removed and use assignment sheets instead. But for the new account, you will need to update the schedule A to reflect the new account.

Willie Lowman · June 20, 2014, 10:46 AM

My attorney told me to open a bank account in my trust's name before doing anything else. I pay for all the trust's purchases and tax stamps with it's account. When not about to buy another suppressor + stamp I keep a few dollars in the account.

August 13, 2013, 08:55 PM	#1
banger Member Join Date: December 31, 2009 Location: Alabama Posts: 21	Schedule A question On my NFA trust, I want to change the bank account funding the trust. What's the best way ? Shall I simply remove the old account and replace with the new one. Or, leave the old one on the schedule A with a comment that it is no longer valid while adding the new one ?

August 14, 2013, 06:46 PM	#5
Coach Z Senior Member Join Date: February 18, 2011 Location: RI Posts: 795	Sorry can't say as this has come up with my trust, I'd suggest asking whomever setup the trust for you. They should be well versed in appropriate regulations etc. It seems that if you setup the new one before canceling the original then you never would have broke the trust being funded... __________________ Love my guns

August 15, 2013, 11:28 PM	#7
balyon85 Senior Member Join Date: February 13, 2013 Location: Lochbuie, CO Posts: 140	Re: Schedule A question Don't you just use a "revised"schedule A as you would when the nfa item comes back approved and is added to the trust?

Thread Tools	Search this Thread
Show Printable Version Email this Page	Search this Thread: Advanced Search

August 13, 2013, 10:04 PM	#2
JustinBiscuit Senior Member Join Date: September 18, 2011 Location: Wisconsin Posts: 184	I don't list or even have a "funding" account for my trust. I am not an expert or a lawyer but I think the ATF cares how you pay for your NFA items.

August 14, 2013, 07:13 AM	#3
kimbershot Senior Member Join Date: September 27, 2008 Posts: 121	i have a trust in sc--i have no accounts associated with the trust. trust very simple and complies with state guidelines. i was approved for a sbr build--paid for tax stamp with a money order that i signed as trustee. it ain't complicated.

August 14, 2013, 05:36 PM	#4
banger Member Join Date: December 31, 2009 Location: Alabama Posts: 21	It's my understanding, in my state, a trust must be funded to be valid. I don't have the option of my trust not being funded. If anyone has any insight or opinion on my original question of changing bank accounts as it would be documented on my schedule A, I appreciate your comments.

August 15, 2013, 03:56 PM	#6
Bartholomew Roberts member Join Date: June 12, 2000 Location: Texas and Oklahoma area Posts: 8,462	Banger, you are correct that trusts must possess property at the time of their creation in order to be valid. That property can be cash, ammunition, rifles, etc. the nice thing about a bank account is it offers a nice, verifiable way to prove the trust was funded at its creation in a way that is admissible. As to what the best way would be, that is really a question for whoever drafted it. A trust is a complete document. Depending on how it is written, changes in one part of the trust may have unintended effects on the other aspects of the trust.

August 17, 2013, 02:02 PM	#8
banger Member Join Date: December 31, 2009 Location: Alabama Posts: 21	After reviewing my original post, I see I could have been a lot clearer. Allow me to restate my question....simply put, when you remove an asset from the trust's schedule A, regardless if it is funding, a rifle, or etc., is it better to completely remove the item off the schedule A, or leave it on with a notation that it is has been removed from the trust ?

June 20, 2014, 09:01 AM	#9
boltomatic Member Join Date: March 25, 2014 Posts: 98	Please don't listen to what others are saying about not needing a bank account. Just because people aren't getting in trouble for it now doesn't mean they won't in the future. All we need is some psycho to shoot up a school with a suppressed gun and the NFA will come under intense scrutiny and that's when all those minor violations people have made will be discovered. Considering how easy it is to open the account, there is really no reason not to do it. As for your original question, schedule A's are not ideal, if possible you should contact your lawyer and have the schedule A removed and use assignment sheets instead. But for the new account, you will need to update the schedule A to reflect the new account.

June 20, 2014, 10:46 AM	#10
Willie Lowman Senior Member Join Date: March 5, 2009 Location: Uh-Hi-O Posts: 3,006	My attorney told me to open a bank account in my trust's name before doing anything else. I pay for all the trust's purchases and tax stamps with it's account. When not about to buy another suppressor + stamp I keep a few dollars in the account.