FormerNavy wrote:I am finalizing my NFA Trust and have a few questions I'm hoping some experienced folks can help with...
1) How does one prove funding of the trust? Is a statement in the trust that $10 has been conveyed/tranferred/assigned to the trust sufficient? Do I need the funding listed on my Schedule A or is that only for NFA items?
2) When filing a Form 1/Form 4 using the trust, do I need to also include a Certification of Compliance (ATF Form 5330.20)? I've read things stating the ATF was now requiring this for trusts as well, but those postings are several years old.
3) Anyone have any recommendations where I can get the stripped lower engraved to ATF specifications?
4) Is it true that anyone with access to the NFA items needs to be a trustee?
I'm in the middle of researching myself and can only answer question 4. The answer is yes. I believe that's the major benefit of setting up the trust and why I'm planning on doing it no matter if any rule changes pass. If the nfa item isn't under your control/sole access then it has to be under the control of another "responsible" person.
Of course if it was in a safe where other people didn't have the key then you'd be fine because technically they don't have access.
FormerNavy wrote:I am finalizing my NFA Trust and have a few questions I'm hoping some experienced folks can help with...
1) How does one prove funding of the trust? Is a statement in the trust that $10 has been conveyed/tranferred/assigned to the trust sufficient? Do I need the funding listed on my Schedule A or is that only for NFA items?
2) When filing a Form 1/Form 4 using the trust, do I need to also include a Certification of Compliance (ATF Form 5330.20)? I've read things stating the ATF was now requiring this for trusts as well, but those postings are several years old.
3) Anyone have any recommendations where I can get the stripped lower engraved to ATF specifications?
4) Is it true that anyone with access to the NFA items needs to be a trustee?
Not sure on 1, i have seen the parts of the trusts that come through here have a funding part for a dollar etc. Personally I use an LLC for all of mine, cheaper to setup
We do not have to send in the Certificate when its a trust or LLC. The online system does not need it, however individuals must have it.
We can engrave for $40
Item 4, well basically anyone who has possession of it must be a trustee (or officer when its a corporation, or authorized employee etc). Possession is the word they like to use.
Does anyone have updates on their personal experience or recommendations for future consideration?
“It’s not that we don’t have enough scoundrels to curse; it’s that we don’t have enough good men to curse them.”–G.K. Chesterton-Illustrated London News, 3-14-1908
Republicans.Hate.You. See2020.
"Avarice, ambition, revenge and licentiousness would break the strongest cords of our Constitution, as a whale goes through a net. Our Constitution was made only for a moral and religious people. It is wholly inadequate to the government of any other." John Adams to Mass Militia 10-11-1798
“It’s not that we don’t have enough scoundrels to curse; it’s that we don’t have enough good men to curse them.”–G.K. Chesterton-Illustrated London News, 3-14-1908
Republicans.Hate.You. See2020.
"Avarice, ambition, revenge and licentiousness would break the strongest cords of our Constitution, as a whale goes through a net. Our Constitution was made only for a moral and religious people. It is wholly inadequate to the government of any other." John Adams to Mass Militia 10-11-1798
Klingon00 wrote:Are there advantages to going with a Trust over going the direct route and obtaining CLEO sign off? Would it help with probate issues?
It can. A well written trust will function as an estate planning tool while allowing you to avoid the hassle of the CLEO signoff. A poorly written, but passable trust will allow you to avoid the hassle of the CLEO signoff only.
The other advantage is that any trustee may have exclusive physical possession of the trust assets without you having to be around. Most commonly a husband and wife will both be trustees so that way there is never any question about possession or even constructive possession for what is in the house. I've also added my retired father as a trustee so if he wants to go to the range one day while I'm at work and take some toys he can.
Most of the time I keep all of my firearms in my NFA trust for inheritance purposes although sometimes I take all my NFA items out of the trust.
From my experience, do NOT use KeyBank to fund your trust. They closed my account without warning, claiming that a trust cannot own firearms, guns are bad, blah blah blah.
NRA Certified Pistol Instructor
NRA Certified Range Safety Officer