• ODT Gun Show & Swap Meet - May 4, 2024! - Click here for info

Why use a trust?

Lightsped

Default rank <100 posts
Hunter
3   0
Joined
Jun 30, 2012
Messages
96
Reaction score
14
Location
Acworth, GA
I haven't purchased any NFA stuff since the 2016 rule changes. Currently have several toys on a trust.

With current ATF regulations, what is the advantage of using a trust? I currently have several items on a trust, but this was before the rule changes in 2016. Now, would it be better (or quicker) to register the items to the individual?
 
The main advantage of a trust is still the same as pre 41F, multiple people can use the NFA item by themselves. Nothing has changed there. This is still the #1 reason to use a trust. If you have family members or friends who will have a reasonable need/desire to use the NFA item without YOU being there, then you should use a trust to register your item. Yes it requires a little more work now, but that main benefit is still intact.

If you do not fit into that category, then the individual route is the way to go in my opinion. Yes it is much faster now to just register as an individual, but you lose the multiple ownership option. That is the main choice you need to make.

Succession planning is relatively simple even as an individual now as the ATF did clarify that the executor of your estate can handle disposing of the item without needing to form 5 it to themselves or to the heir immediately.
 
You can "buy" ( select and pay for) an NFA weapon as an individual, but if you want it to go in your trust you'd better make sure the Form 4 says so, and you sign it as Trustee.

Otherwise, you'll have to do it all over again later with another $200 stamp and another year of waiting to switch it from individual ownership to Trust ownership.
 
Is it possible to remove all of the other trustees from your trust, purchase a new item, and re-add the trustees after the paperwork clears? If so, how would I go about doing this? Can I do it on my own, or does the attorney have to do it?
 
Back
Top Bottom