got my NFA Trust set up...now what?

[Hiker 1]

Hi all,

I have my NFA Trust set up but I am uncertain as to what to do next. Do I go ahead and acquire my first NFA item and list in on my Schedule A? After the first item clears ATF do subsequent items move through the process more quickly?

Thanks!

[Tom Servo]

You'll need to list some sort of property on Schedule A. Do not list the NFA item, as it has not been approved for ownership on the trust yet.

As for subsequent approvals, there's no guarantee they'll be quicker.

[Hiker 1]

I do have separate property listed on the Schedule A so I can start looking for an NFA item now?

[rjrivero]

Go get your NFA item. Then submit the paperwork and wait. Or sign up at www.atfonline.gov and do the "paperwork" electronically.

The subsequent items take just as long as the original.

Get what you want before the required CLEO sign off comes through for Trusts/LLC/Corps.

If you "believe" such change is coming.


My understanding is that you can list the NFA item in the trust once the trust owns it, but you can't take possession of it until the transfer tax stamp comes in. I thought folks listed the item in their schedule A once they have the receipt that shows it is paid for. At that point, I *thought* the trust owned the property even though the trust couldn't take possession of it until the stamp gets approved.

I could be wrong, so I'm interested to read other's comments. How did you do your trust's schedule A? Did you list your item before you got your transfer tax stamp, or did you list it after you got your transfer tax stamp?

[tmorone]

Interesting topic about the Schedule A's. I've got five NFA items in my trust and have yet to send the ATF anything but a blank Schedule A.

Based on that experience I'd say it's easy to just leave it blank, but betting there's a downside to that plan somewhere. The shop that usually transfers my suppressors just said to leave it blank and I took their advice without too much thought...

[Hiker 1]

If you "believe" such change is coming.

Oh, I believe in change

[balyon85]

I just put "sum of ten dollars" on line 1 of my schedule A and sent it off. On my revised, which I kept, I have the info for my SBR. As I'm "manufacturing" it myself, its already in my possession.

[tgreening]

I'm no trust expert or I wouldn't have needed a lawyer, and I may be misinterpreting the language in my trust, but here goes.....

It was my understanding that in order for the trust to be valid it has to be "funded", and in this case funded doesn't mean money, it means you have to something listed on the assignment sheet, as in firearm.


@tmorone: How can you have 5 nfa items in your trust unless you listed them on the assignment sheet and sent that to the batf? Isn't that paperwork required, along with the form 1/4?


It was my understanding if you are buying an nfa item, you list it and sned in your paperwork. You just cant take possession of it till the stamp comes through. And also this is where your trust issupposed to have its own bank account. It is supposed to purchase the nfa item, not you.

Here again, I'm going from memory and dont have my trust and the "crib notes" they provided along with it. I do know they were pretty specific about what "funding" actually meant, and the purchase procedure for the already made type nfa item. According to the lawyer when most people purchase them, they do it all wrong and leave themselves open to potential trouble.

[Tom Servo]

It was my understanding that in order for the trust to be valid it has to be "funded"

Yes, but you can list anything. Most folks list an innocuous possession, like a small amount of money.

How can you have 5 nfa items in your trust unless you listed them on the assignment sheet and sent that to the batf? Isn't that paperwork required, along with the form 1/4?

The registered NFA item will be listed on the Form 1/4. It isn't necessary or desirable to list it on the copy of the Schedule A sent to the ATF. As long as you have an updated Schedule A in your possession, you're OK.

[Bartholomew Roberts]

Based on that experience I'd say it's easy to just leave it blank, but betting there's a downside to that plan somewhere.

Since ATF has been looking more closely at trusts, one of the things they look for is evidence that the trust was funded when created. The Schedule A helps show that. Some people have had blank Schedule As approved. Some have not.

[Hiker 1]

My trust is funded with a $10 bill listed on my Schd A, so I'm good there.

Now for an Osprey...

[rjrivero]

I have a 9mm Osprey and a .45 Osprey. Fine can. However, Consider the Octane. It's user serviceable, quiet, and well built. Uses the same pistons as the Osprey as well so you have the same mounting options.

[tgreening]

Well, they cashed my checks so apparently the shutdown didn't extend to the check cashing people. Gotsta keep that cash rolling I guess.

And where else do you get to pay 6-8 months in advance for a service that you may or may not receive?

[Willie Lowman]

After the first item clears ATF do subsequent items move through the process more quickly?

BAHAHAHHHAHAHAHAAHAAH! No. Not at all.

[boltomatic]

I highly suggest opening a bank account in the name of the trust and paying for all NFA items and tax stamps with that bank account. Right now, its not really an issue, but if liberals crack down on NFA items in the future and start auditing past purchases, they might consider paying for an NFA item personally, when its registered to the trust, an "unapproved transfer" and possible confiscate the item and put you in jail.

That's of course the worst case scenario, its more likely that it would just be a headache while you cleared things up, by why even take the risk?

For me it was great, my local bank was running a promotion where you got $200 cash for opening up an new account so not only did I make the trust and NFA purchase rock solid, I covered the cost of the tax stamp!

So again, opening a bank account for the trust isn't strictly necessary, but its so easy and provides another layer of protection. If you do pay with your own money, you can attach a letter to the trust stating you contributed the purchase price to the trust by paying for the item with your money on behalf of the trust, but its easier and more legit to write a check from a bank account in the name of your trust, that way there is no doubt that the trust is paying for the item.

[Elkins45]

When I bought my first item and submitted the trust I sent along a Schedule A that listed the item I had just purchased followed by the parenthetical (pending BATFE approval). My attorney advised me that my trust was, in fact already the owner of the item...just not able to legally possess it yet.

[Theohazard]

^^^ Did the ATF approve it? Because I've heard from many sources that if you put the suppressor that you're currently buying on your Schedule A when you send in your paperwork, the BATFE will send it back and make you correct it.

I bought two suppressors about a month apart and I left both off of my Schedule A. All I had on my Schedule A was $10. And both were approved. Now that I've got both tax stamps back I took the $10 off and put both cans on my Schedule A.

[Elkins45]

Yes, times three. I have two paper apps (1 and 4) and an e-filed 1. I did the same thing for each and they were approved without correction.

[Theohazard]

Interesting. Maybe the "pending BATFE approval" part is what did it? Who knows. All I can say is that I just had $10 on my Schedule A and both my Form 4s got accepted.

Honestly, all this does is show was a convoluted process this is; almost nobody outside the BATFE fully understands how the process works from start to finish.

[Elkins45]

It probably depends to some degree on who you have as an examiner. Both of my paper forms were approved by the same person but my e-file was done by someone else.