Could you do this

[OARNGESI]

is this possible? set up a trust buy a nfa item then when you sell the item add the new owner to the trust and remove yourself. Basically no need for another stamp.

 

[MachIVshooter]

You could, but it would be a mess and potential legal minefield.

 

[pdsmith505]

 

[AlexanderA]

is this possible? set up a trust buy a nfa item then when you sell the item add the new owner to the trust and remove yourself. Basically no need for another stamp.

This would make more sense for high-priced items such as machine guns or artillery pieces, than for suppressors or SBR's.

An even better idea would be to set up a corporation to hold ownership of each item. The interest in the corporation could pass with no "transfer" of the gun.

There are costs and complications involved with such arrangements, which is probably why they are not used more often. Theoretically, the whole NFA regulatory regime could be made moot. As transfer-processing times go up, I can see this becoming more commonplace.

 

[OARNGESI]

Yeah but you set up a trust for each gun it’ll turn months into minutes imagine if a dealer would transfer items into there own trust then buying a nfa item will be almost as easy as any other item in the shop. How much is it really worth not to have to wait a month

 

[Ryanxia]

I don't think you could "remove yourself" as Grantor of the Trust. You could add someone as a trustee but you would still be the Grantor. The address is yours, the person who notarized it notarized YOUR signature, and the Successor Trustees (if you are incapacitated) generally have instructions if YOU are incapacitated. All that would have to be changed, not sure if that is possible. (Of course I could be wrong.)

If you just added them as a Trustee and left yourself the Grantor, the biggest drawback is that the Trust only exists to transfer your listed possessions to your beneficiary when you die, so if you die in a car accident the property legally goes to your beneficiary and they would not be able to maintain possession of the item(s).

 

[AlexanderA]

I don't think you could "remove yourself" as Grantor of the Trust. You could add someone as a trustee but you would still be the Grantor. The address is yours, the person who notarized it notarized YOUR signature, and the Successor Trustees (if you are incapacitated) generally have instructions if YOU are incapacitated. All that would have to be changed, not sure if that is possible. (Of course I could be wrong.)

The problem is that a trust is not a legal entity, but a relationship between three parties -- the grantor, the trustee, and the beneficiary. Trustees and beneficiaries can be changed, depending on the type of trust. Guns and other NFA items were shoehorned into trusts, as a workaround for non-signing CLEO's, even though trusts were originally meant for other purposes. This was, and remains, awkward. Seek legal advice.

Corporations, on the other hand, are legal entities, and they last forever (provided the state franchise fees are paid). Transferring an interest in a corporation is as simple as selling its stock.