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setting up a trust

Discussion in 'NFA & Class III Discussion' started by dieseltech09, Jan 5, 2010.

  1. dieseltech09

    dieseltech09 Sharpshooter

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    can someone point me in the right direction on setting up a trust. Im starting an SBR build and from what im reading and what ive been told this is the best way im just not sure where to begin. I would appreciate any help.
     
  2. jbarnett

    jbarnett Sharpshooter

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    If you buy from Major Malfunction or MAS (both are OSA sponsors) they will do it for you.
     
  3. dieseltech09

    dieseltech09 Sharpshooter

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    Ive already bought the lower and waiting for it to come in.
     
  4. 338Shooter

    338Shooter Sharpshooter

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    Maj Malfunction did the trust and paperwork on my first form 1.
     
  5. dieseltech09

    dieseltech09 Sharpshooter

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    anyone out there who has done it themselves?
     
  6. tyromeo55

    tyromeo55 Sharpshooter

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    Yup, It's super easy. Willmaker is what I used and I would venture a guess that is what the dealers would use to make yours. The newer versions of the program do not include trust making. you will need to go online and buy the special trust only version for like 20 something bucks. Do you have any specific questions? PM me if you want
     
  7. jerryr98

    jerryr98 New to the site!

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    Has anyone that has chosen the dealer trust route had an attorney review it? I really want to do this as an added benfit to my family but I can not help but be fearful of having an invalid trust and face penalties from the rath of the ATF and our government.
     
  8. CAR-AR-M16

    CAR-AR-M16 Sharpshooter

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    Have you checked to see if your CLEO will signoff and skip the trust altogether? I can certainly understand folks going the trust route if they cannot get a signoff, but most folks don't even bother checking with their CLEO.
     
  9. jerryr98

    jerryr98 New to the site!

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    CLEO signoff is not even an issue as I am affiliated in LE. My interest in a trust keeps coming back to other beneifits such as what happens to the NFA item when I pass. With a trust I can address these issues without surrendering of the item(s).

    Jerryr
     
  10. CAR-AR-M16

    CAR-AR-M16 Sharpshooter

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    If your NFA items are owned individually they would transfer tax free on an ATF Form 5 to your heirs. It is not any kind of hassle and there is no "surrendering of the item(s)".

    From the ATF NFA Handbook: (http://www.atf.gov/publications/download/p/atf-p-5320-8/atf-p-5320-8-chapter-9.pdf)

    9.5.3 Distribution of estate firearms. A decedent’s registered NFA firearms may be conveyed taxexempt
    to lawful heirs. These distributions are not treated as voluntary “transfers” under the NFA.
    Rather, they are considered to be involuntary “transfers by operation of law.” Under this concept, ATF
    will honor State court decisions relative to the ownership and right to possess NFA firearms. So, when
    State courts authorize the distribution of estate firearms to decedents’ lawful heirs, ATF will approve the
    distribution and registration to the heirs if the transactions are otherwise lawful. A lawful heir is anyone
    named in the decedent’s will or, in the absence of a will, anyone entitled to inherit under the laws of the
    State in which the decedent last resided.

    9.5.3.1 Distributions to heirs. Although these distributions are not treated as “transfers” for
    purposes of the NFA, Form 5 must be filed by an executor or administrator to register a firearm
    to a lawful heir and the form must be approved by ATF prior to distribution to the heir. The
    form should be filed as soon as possible. However, ATF will allow a reasonable time to arrange
    for the transfer. This generally should be done before probate is closed. When a firearm is being
    transferred to an individual heir, his or her fingerprints on FBI Forms FD-258 must accompany
    the transfer application. The application will be denied if the heir’s receipt or possession of the
    firearm would violate Federal, State, or local law. The law enforcement certification on the form
    need not be completed. The form should also be accompanied by documentation showing the
    executor’s or administrator’s authority to distribute the firearm as well as the heir’s entitlement
    to the firearm. Distributions to heirs should not be made until Forms 5 are approved. Executors
    and administrators are not required to have estate firearms registered to them prior to distribution
    to lawful heirs.


    Another ATF Letter about this is available here: http://www.atf.gov/press/releases/1999/09/090599-openletter-nfa-estate-transfers.html
     

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