NFA Trust Changing/Adding/Removing Settlor

[khanguyen519]

This is an unusual case and it's been tough to find answers. I am a trustee on a buddy's trust but he's looking forward to moving to a restricted state for a career. He wants to hand over all the items to me and we agree I should be the grantor to modify the trust as I want in future. I just want to the ability to amend the trust if I need to add or remove trustees without him having to worry about it. I'm leaving him as a trustee in case he wants to come back and use them.

Can I generate an amendment to change him to a trustee(among others) and myself into the grantor? Is that legally accepted By the ATF? Does changing the original grantor/settlor nullify the trust? Has anyone made this change?Thanks in advance.

 

[Red Dawn]

@heavyd GAgunLAWbooklet
Can prolly answer this issue no prob. Seems to me no change is necessary. You keep everything there with you and the current grantor can make changes and email to you to print a copy. Just me thinking out loud.

 

[Apollo]

I would think he would always be the grantor and you the trustee. You'll prolly take over the responsibilities of the grantor but he will always be the owner/client of the trust

Sent from my SM-G950U using Tapatalk

 

[HydroAuto]

Just spitballing with the rest of the non-attorneys here... but I think this is where something called "restating" the trust comes into play.

 

[GAgunLAWbooklet]

What does the Trust itself say?

Generally, the Grantor /Settler has inherent (presumed) power to give as much authority to a Trustee as the Settler himself has (which, for a revokable trust, is a huge set of powers).

Most of my trusts say this explicitly, unless the client wants to reserve some powers only for himself, leaving the co-trustee as a subordinate.

What is the reason that you would want to be considered the grantor -settlor rather than just being a fully-empowered trustee with authority to do pretty much anything with the items held in trust ?

If you're considering this like a sale, where your buddy sells you his NFA weapons collection, and instead of doing a bunch of Form 4 transfers you just pay for the right to become the grantor or settler of his trust, that's sketchy.
I wouldn't do that.

 

[khanguyen519]

What does the Trust itself say?

Generally, the Grantor /Settler has inherent (presumed) power to give as much authority to a Trustee as the Settler himself has (which, for a revokable trust, is a huge set of powers).

Most of my trusts say this explicitly, unless the client wants to reserve some powers only for himself, leaving the co-trustee as a subordinate.

What is the reason that you would want to be considered the grantor -settlor rather than just being a fully-empowered trustee with authority to do pretty much anything with the items held in trust ?

If you're considering this like a sale, where your buddy sells you his NFA weapons collection, and instead of doing a bunch of Form 4 transfers you just pay for the right to become the grantor or settler of his trust, that's sketchy.
I wouldn't do that.

The trust states the powers of the trustee but the trustee does not appear to have the power to remove other trustees or beneficiaries. Would an amendment be sufficient to create a fully empowered trustee?

He'll have to leave all the items in Georgia for me to manage as a trustee so I want to be the Settlor to have the power to add/remove trustees and beneficiaries without having to bother him for an amendment. He will be a trustee and can come back to grab them as he likes. There is no money involved so I wouldn't say this is a sale.

If he moves to a restricted state, can the trust remain in Georgia and be valid? Worst case, we'll leave the trust as it is and I'll manage the properties as the Trustee and beneficiary(I am both).