Individual Ownership Vs. NFA Trust

Discussion in 'NFA/Class 3 & FFL Discussion' started by 1911love, May 7, 2013.

  1. 1911love

    1911love New Member

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    I've heard a lot about these NFA trusts and some of the benefits. My question is, are there any benefits by owning NFA weapons as an individual instead of through an NFA trust?
     
  2. clr8ter

    clr8ter New Member

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    I looked into this. A trust is definitely more money. $600-800 if done right. Only reason I haven't done it yet. But it seems to me the benefits are more, too.
     

  3. danf_fl

    danf_fl Retired Supporter

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    Have you looked into LLC?

    As an individual, What happens to the firearm upon your demise?
    As an LLC, it does not belong to one individual, but members of LLC.
     
  4. clr8ter

    clr8ter New Member

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    Kinda the same thing with the trust. You can have more than one person listed as trustee. Say you & your wife. When you die, all the items in the trust fall to her control, immediately, and with no hassle. Also, if she is named on the trust, you do not have to secure the items from her, if owned individually, you would.
    But, no, I have not looked into an LLC.
     
  5. nitestalker

    nitestalker New Member

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    Hunting with a suppressor is legal in my state. The cost however is incredible. A suppressor can cost $1,000 dollars and a 6 mos wait. The legal aspects another $1,000 dollars. This also allows the BATF to regulate your ownership and disposal of the suppressor. :confused:
     
  6. JonM

    JonM Moderator

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    the trust is the way to go. you can add people when you want (depending on state trust law) you can add inheritance for people underage. there is no yearly fees or meetings needed as with an llc. you own the trust the trust owns the item. with a llc your under incorporation laws which can change yearly at the whim of the government.

    as an individual you cannot let anyone but you utilize it outside your immediate control. if you expire it gets inherited out by your local laws on inheritance and the batfe is immediately involved similar but slightly different issues are involed with the llc.

    the big differences are ease of the application proccess and inheritance possession rules all of which favor the trust.
     
  7. clr8ter

    clr8ter New Member

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    And, don't forget, if individually owned it has to be secured (locked up) from everyone in the house, including your wife.
     
  8. Car54

    Car54 New Member

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    The trust is the way to go. No CLEO sign off, no prints, no photo, transfer to trustees without ATF, IRS, or Probate hassles. You can add or change trustees, and beneficiaries any time you want, trustees can lawfully possess items listed in the trust.

    It's well worth the cost.
     
  9. DavidB

    DavidB New Member

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    My trust (in Florida) cost $175. I don't know about other states, but $600-$800 seems very unreasonable. Shop around a little.
     
  10. 1911love

    1911love New Member

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    Thanks for all the info guys! I've never heard of any advantages to the individual possession, I just wanted to see what others had to say. Looks like there are no disadvantages to the trust route, correct?

    David, I'd be interested in your experience since I live in Florida. Any other info you would like to share would be very helpful, thanks.
     
  11. clr8ter

    clr8ter New Member

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    One of the possible disadvantages is that apparently, the ATF (or anyone else), has not challenged it. Supposedly, they could, and supposedly, the trust would hold. No one seems to know, though. That and the cost.

    As far as the 6-800 I quoted - that's in NH, and by an actual attorney that specializes very specifically in gun law. I think this is one of those times it would behove you to go find the best. No need to take chances with legal zoom or anything, right?
     
  12. robocop10mm

    robocop10mm Lifetime Supporting Member Lifetime Supporter

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    The Trust is very viable for my home County. The Sheriff will not sign off on individual applications for suppressors. Machine guns, no problem. SBR's no problem. He has heart burn with supressors for some reason
     
  13. DavidB

    DavidB New Member

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    I sent you a PM with her contact info. She did my trust in less than 48 hours, and I misspoke. She only charged me $125.00.
     
  14. 1911love

    1911love New Member

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    Just got the PM David, thanks! Well, apparently there are no advantages to going the individual route so I'll be getting a trust set up in the near future. Thanks everybody for clearing my question up.
     
  15. Doc3402

    Doc3402 New Member

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    Assuming that you are not a Florida attorney, and assuming that you may not even be an attorney, could you either be more specific or rephrase the part about inheritance for underage?

    Here is why I'm asking. The trust owns the firearm, not me. I die. The trust still owns the firearm. From this point it's getting fuzzy to me. If the child I want the gun to go to is still not old to own a firearm, what happens to the firearm? Do I need to appoint or hire a trustee to administer the trust until the child comes of age? Does the responsibility fall to the trust attorney? And the last question. When I die, does ownership transfer to the child even though possession can't?

    If you're not comfortable with even a vague answer I fully understand.
     
  16. GunAtty

    GunAtty New Member

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    The trust will have to have a trustee and will continue to own the NFA item(s) until such time as the beneficiary can legally take possession. A properly executed trust will have appropriate provisions in the trust to ensure that the trust remains in tact and has a trustee or provision to appoint a new trustee until such time as your child can take possession of the item.
     
  17. Doc3402

    Doc3402 New Member

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    That's exactly what I wanted to know. Thank you very much. That answered the last question I had about trusts.
     
  18. purehavoc

    purehavoc New Member

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    I have all individuals, no trust here . My understanding is if I pass , my spouse and or kids have to call the BATFE and get the proper forms for the transfer , no extra cost like reapplying for another stamp . They arent going to storm the house looking for the guns when I pass . Not to mention if something did happen my local CLEO that signs off on all my stuff anyway would help take care of it . If there was any issues with this Im sure they would gladly hang on to the stuff until all the proper paperwork came back . My wife knows if the boys or her decide they dont want them I already have a class 7 dealer lined up that would gladly buy them at a fair market price . To me if the lawyer doesnt deal with this kind of trust there is a fine line of not getting it done properly . Im perfectly fine doing the individual . Nobody is going to go out and shoot them without me being present anyway.
     
    Last edited: May 13, 2013