Thread: How To Set Up A Trust For NFA

Disclaimer: I am not a bloodsucking lawyer and don't ever plan on being one, so use my information at your own risk.


Now that I got that out of the way, this is what I did and it has worked well for me. Since I have been asked so many times how to set up a trust like I did, I'll tell you how. This hopefully will show you step by step what you need to do to set up a Revocable Living Trust so you can bypass the Sheriff of the county you live in.

Step 1: Go to the store and buy Quicken Will Maker. My desktop came with Quicken Will Maker 2004, so that's what I use. Once you get it home look at the box for a while, study the corners, and when you can't stand it any more, open the box and install the software.

Step 2: Once it's installed go to "Create Document" and select "living trust". It will then ask what state you live in. If you live in Oregon, select Oregon. If you live in Washington, don't select Oregon. If you're unfortunate enough to live in Alaska.......You're on your own.

Step 3: Fill in the blanks. I'm not going to tell you how to type your name or your family member's names so you're on your own for this one. It will also ask if you are male or female. If you have made it this far in life and don't know yet....you're screwed.

Step 4: Name a successor trustee. This person will be in charge of giving away your stuff when you die.

Step 4: Name an alternate successor. Somebody that you didn't pick in the last step.

Step 5: Name property. This will be entered on the "Assignment of property" which actually puts the trust in ownership of the firearm. Be specific. If it's a Mega Model "Gator" Serial Number "1234567" enter "Mega Gator Serial Number: 1234567"

Step 6: Name your beneficiaries. Pick someone you plan on knowing as long as you live and would want your NFA stuff going to if/when you die. This person has no authority over your trust items while you're alive but once you're dead, it goes to them (in theory).

Step 7: Name A Residuary Beneficiary. Name somebody else who will get your stuff if both you and your primary beneficiary die. For example, you name your wife as your primary beneficiary, and you both die in a car accident....who would the next choice be for your stuff to go to?

Step 8: Property Management For Young Beneficiaries: If you picked a beneficiary that is under the legal age to own an NFA firearm, pick someone who is old enough.

Once you have that done, it will show you a preview of the trust document. Review it and make sure all information is correct. If it's correct, print it out. You will get a "Declaration Of Trust", "Schedule A" and "Assignment of Property"

Fill out the assignment of property and put it in a folder with the Schedule A.

Take the Declaration of Trust to your bank and have it notarized.

Once you do that, print out a "Certification of Trust" and keep all information in a folder in a safe place.


You're almost done. All you need to do now is Get to work on your Form 1 or hound your dealer about the Form 4. On the form 1, instead of checking the "individual" box, check the "Corporation or other business entity box" In name, enter the name of your trust, not just your name. So if my name is John Q. Public. On the Form 1, it says John Q. Public Revokable Living Trust.

Fill out the front page down to box 11. print it out so it's a double sided page and leave the back blank. There's spots for pictures and for your CLEO to sign, but that's not needed with a trust.

Take the Form 1, Form 4, whatever and put it in a folder. Make copies of your entire trust (Cert. of Trust, Declaration of Trust, Schedule A, Assignment of Property, etc.) and put it in the packet. Some people say the ATF doesn't need all that information, but I have heard of people having to fax in more paperwork, so I just send it all in at once.

Write a check for $200 and put it in the packet. Take it to the Post Office and send it in....then just wait.....and wait.....and wait......and wait......and wait.

Once you get the tax stamp, make copies.....lots of copies. I made a binder with all my tax stamps and all my trust documents in it (DO NOT CARRY THE ORIGINALS AROUND WITH YOU) and any time I go to the range with any NFA items, the binder comes too. Anywhere the NFA items are, there should be a tax stamp.

Forgot one thing: When you get your receiver engraved for SBR/SBS/AOW, it needs to be engraved with the trust name (John Q. Public RLT Salem,OR)

OK, I think I have covered everything....if I missed anything, I'll edit and post it up.

Good Writeup.

Tag (just to keep track if this changes)

Just filled out my trust documents today going to get it signed soon.

Steven

So, do you repeat all the steps above for each NFA device? I mean, do you create a new Trust each time, or you update the "inventory"? And how does the notary public keeps track of the updates?

I think once you have the trust set up all you have to do is adjust your scuedual A as NFA items are moved into the trust. Again I think that the act of filling out your form1 form? will affectivly give the item to the trust.

Please correct me if I am wrong

Steven

Ok got the trust signed and all, but to make it affective it says I have to transfer my items into the trust. How do I transfer my AR into the trust? How do you transfer anything into the trust?

Do I just put in on scuedual A and it is not magically given to the trust and is no longer mine as an individual?

Thanks for any help!
Steven

any time you go through a transfer (person to person, person to FFL, trust
to person, person to corp, etc) a Form 4 is required, ergo $200 ($5 for AOW)
...for each firearm

Originally Posted by waltermitty

any time you go through a transfer (person to person, person to FFL, trust
to person, person to corp, etc) a Form 4 is required, ergo $200 ($5 for AOW)
...for each firearm

I think aquariumjunky is asking the question within the context of the thread. How does anyone can add a new NFA device to the Trust after it has been notarized. I originally raised the question, he responded. but then, he is not so sure of his response. Neither am I. I've been waiting for someone with actual experience updating his Trust to respond. I have purchased several devices w/o a trust. BATFE processing takes longer 'cuase each time the its gotta got to the FBI. For future purchases thats a step I hope to save once I create a Trust.

Also, when a NFA device is on your name, only you can use it. But, once it is on a Trust, trustees can use them w/o your direct immediate supervision. But I am no lawyer. Check this out before anyone goes off half cocked.

understood....now. half on nyquil

Originally Posted by onearmedswordsman

I think aquariumjunky is asking the question within the context of the thread. How does anyone can add a new NFA device to the Trust after it has been notarized. I originally raised the question, he responded. but then, he is not so sure of his response. Neither am I. I've been waiting for someone with actual experience updating his Trust to respond. I have purchased several devices w/o a trust. BATFE processing takes longer 'cuase each time the its gotta got to the FBI. For future purchases thats a step I hope to save once I create a Trust.

You dont have to put anything in the trust except what you want to be there and what is owned by the trust. A silencer purchased by the trust will be there but you do have to add it and you don't have to do anything but amend the schedule A to include it. You as the trustee can add or remove items at will . Hence the name "revocable living trust".

This thread should be a sticky.

Also, I have a question. When you buy an NFA item, do you buy the item FIRST and then it sits at your dealer waiting for the paperwork to go through, or do you pay for the tax stamp first, wait for the paperwork to go through, and then after you have a stamp go buy the NFA item? Also, can you get like, a tax stamp for an SBR, but then wait a few months before using it to actually buy an SBR?

Originally Posted by spengo

This thread should be a sticky.

Also, I have a question. When you buy an NFA item, do you buy the item FIRST and then it sits at your dealer waiting for the paperwork to go through, or do you pay for the tax stamp first, wait for the paperwork to go through, and then after you have a stamp go buy the NFA item? Also, can you get like, a tax stamp for an SBR, but then wait a few months before using it to actually buy an SBR?

Depends on your dealer but the custom is to pay the money for the item to your dealer. Not always the case. My dealer wants half up front usually. Also pay your dealer the $200 tax. He sends the tax money in to the ATF with the form 4. Then you wait. The tax is for one item and one item only and the form 4 needs that item listed when its sent in.

Nvm

Question..... can you add a "partner" as a residuary beneficiary AFTER your primary beneficiaries ...in order to allow him to possess the "items" on the Schedule A....ie..... NFA items that are shared in the Trust? OR do you need to form a Corporation instead and make him an Officer to achieve this ability to Share "entity" owned items.?

They'd have to be added as a co trustee.

So do you think that is the best way to set the "shared" items idea up?....... I am the FFL holder and he is my Manufacturing assistant etc..... but it's me on the licenses......

so I can make him a Co-trustee along with my wife?

You can add anyone as a co-trustee who is legally entitled to possess an NFA item EXCEPT beneficiaries of the trust. They can be added after the trust has been submitted to the ATF.

Beneficiaries cannot be trustees and do not have the right to possess the NFA item unless they are in the presence of a trustee.

So....... I think I am understanding....... the Trustee and/or Co-trustee are "in charge" of items in the trust...... the beneficiaries ONLY gain right of ownership AFTER the demise of the principal?