Funding for a NFA trust

[Rate_of_Twist]

There are two common options from what I have seen for funding a NFA trust... the Checking account and the Dollar bill method.

I'll say, I'm not asking for legal advice just opion and personal experience. I'll also say, my trust will be for SBR's and perhaps suppressors when I'm in a free state. I have no plans to add any real high dollar investments such as machine guns.

The dollar bill method seems to be the easiestas the two credit unions I belong to don't do accounts for trusts (not sure why, I didn't mention anything about firearms) thus brings up the question of how to fund and pay for items held within the trust.... how does this work (correctly) without a checking account?

If checking account is really the way to go, any places in North Central Mass that don't have a problem opening one?

drb

 

[Romokid]

I believe someone in one of the NFA threads mentioned wrote the serial numbers off of a $5.00 bill on there assignment sheet(if my memory serves me) and then they paper clipped it to the trust. Or like most, I believe once you assign your SBR to the trust, it is then funded.

**I believe that is how the discussion went in the NFA thread, I could also be totally wrong.

 

[ScottS]

Remember that "funding" a trust simply means assigning something to the trust. It can be anything, including the lower you plan to SBR. It doesn't have to be money.

"Funding" is a confusing term, but all you have to do is assign something to the trust.

 

[Rate_of_Twist]

Remember that "funding" a trust simply means assigning something to the trust. It can be anything, including the lower you plan to SBR. It doesn't have to be money.

"Funding" is a confusing term, but all you have to do is assign something to the trust.

Interesting, thank you.

Ok, what about "paying for" items held by the trust (ie firearms and tax stamps )

 

[ScottS]

Interesting, thank you.

Ok, what about "paying for" items held by the trust (ie firearms and tax stamps )

First, I'm not a lawyer, right? And I don't know how your trust is written.

There are two schools of thought on paying for stuff in an NFA Trust. The by-far-widest held position is there is no need to have a separate checking account to buy "stuff" for the trust. Trustees (should) have the ability to acquire assets for the trust and dispose of trust assets.

A smaller group holds the opinion you should set up an account in the Trust's name, and buy stuff through that account. I don't profess to understand the reasoning, since you (the Trustee) will be putting the money into the account, and then writing checks, so I don't see the difference. But, as I said, I'm not a lawyer.

That said, I've researched this pretty heavily, have had my NFA Trust for almost 10 years now, and the Trust owns far more shit than my wife will ever really know about until I'm dead (and she's a trustee!)

 

[drgrant]

From a practical "getting stuff done" point of view the trust doesn't have to fund the purchases.

Form a "you paid a lawyer $250 for an hour of advice" matter the lawyer is might tell you to wash everything in the trust through the trust. EG, funds from the trust should pay for the stamps, should pay for the guns, blah blah blah.... to enhance the presentation and the validity of the trust.... which can be helpful if its validity is ever challenged. (which is pretty much unheard of in most cases. )

I personally think the latter opinion is overkill.

-Mike

 

[Kevin_NH]

There's nothing wrong with having a checking account for the trust, it's a small expense compared to the tax stamps, once you no longer expect to be writing more $200 checks, close the account.

If checking account is really the way to go, any places in North Central Mass that don't have a problem opening one?

TD Bank was happy to open a checking account for my trust, even provided the notary and witnesses to finalize the trust paperwork.

 

[SemiAutoSam]

I fund all of my trusts that require funding with 21 silver dollars.

 

[Rate_of_Twist]

I fund all of my trusts that require funding with 21 silver dollars.

Ok, I'll bite....

Why 21 silver dollars?

 

[SemiAutoSam]

Its the only lawful money that is still in circulation, Title 12 section 152.

IE: Lawful money has intrinsic value, IMO a trust cant be funded with fiat or debt money.

Another question do any of you have a settler or protector in mind?

Ok, I'll bite....

Why 21 silver dollars?

 

[atilla]

i "funded" my trust with the first SBR i made. no checking accounts, no savings accounts, no serial numbers of bills, and no silver. i paid for the tax stamp on a hilarious internet meme personal check which isn't funny anymore and i never got an image back from my bank--which is too bad, because a check with trollface on it to the DoJ is good for the lulz.

this stuff really isn't as complicated as the internet would lead you to believe.

 

[Rate_of_Twist]

This was my curiosity.... why can't I "fund" the trust with the lower or upper being used fo a sbr?

 

[Romokid]

This was my curiosity.... why can't I "fund" the trust with the lower or upper being used fo a sbr?

You can. That is what most of us do, at least that is what I did with mine.

 

[Rate_of_Twist]

In thinking further, my trust is dated to utilize either a bank account or $1.... I already have the paperwork so I migjt as well just use the $1 option

 

[Asaltweapon]

My trust opened a checking account because it was 100% free.

I did it that way only to make it look cleaner and I have co-trustees from out of state with the plan to obtain free state items.

I really need to get my ass in gear and finalize a few lowers.

 

[Rate_of_Twist]

My trust opened a checking account because it was 100% free.

I did it that way only to make it look cleaner and I have co-trustees from out of state with the plan to obtain free state items.

I really need to get my ass in gear and finalize a few lowers.

Hmm, something in your post doesn't quite add up....

I was under the impression any items on you submit an application for need to be legal in the state of residence of all trustees... but, perhaps I'm missing something

 

[atilla]

Hmm, something in your post doesn't quite add up....

I was under the impression any items on you submit an application for need to be legal in the state of residence of all trustees... but, perhaps I'm missing something

i've never heard this. the way it's been explained to me is that it's property of the trust, not the individuals. it's not bound to any laws other than the NFA. if one of the trustees ****s up, well, that's on them.

 

[Kevin_NH]

I was under the impression any items on you submit an application for need to be legal in the state of residence of all trustees... but, perhaps I'm missing something

i've never heard this. the way it's been explained to me is that it's property of the trust, not the individuals. it's not bound to any laws other than the NFA. if one of the trustees ****s up, well, that's on them.

Exactly. Item being purchased needs to be legal in the state where the trust or corporation is established, not home states of every single trustee or corporate officer. If you want to take an item to another state, you file a 5320.20 "requests for interstate transportation", and that request will be denied by ATF if possession of the firearm at the destination will violate State or local law.

 

[atilla]

Exactly. Item being purchased needs to be legal in the state where the trust or corporation is established, not home states of every single trustee or corporate officer. If you want to take an item to another state, you file a 5320.20 "requests for interstate transportation", and that request will be denied by ATF if possession of the firearm at the destination will violate State or local law.

the wording of that isn't technically correct, either. by that logic my form 4 for a can would have been denied when i bought it since the trust was established in MA.

as long as it's GTG is the state which the particular trustee is who possesses the item there's nothing to worry about.

 

[bigblue]

Its the only lawful money that is still in circulation, Title 12 section 152.

IE: Lawful money has intrinsic value, IMO a trust cant be funded with fiat or debt money.

Another question do any of you have a settler or protector in mind?

The legal definition of "funding" has no direct correlation to money so whether it has intrinsic value or not is irrelevant.

as long as it's GTG in the state where the particular trustee [has possession] there's nothing to worry about.

This.

 

[ScottS]

Its the only lawful money that is still in circulation, Title 12 section 152.

IE: Lawful money has intrinsic value, IMO a trust cant be funded with fiat or debt money.

Another question do any of you have a settler or protector in mind?

Is this some kind of prepper term for cash?

 

[Rate_of_Twist]

So, what your saying is a need to go amend my trust so that it states my property in NH?

Nevermind, this was clarified in a previous post...

 

[Asaltweapon]

Hmm, something in your post doesn't quite add up....

I was under the impression any items on you submit an application for need to be legal in the state of residence of all trustees... but, perhaps I'm missing something

Any trustee can obtain/store any legal NFA items thru the trust. So in my case a trustee (him) can obtain a suppressor using the trust however that does not allow another trustee (me) to take said NFA item into a state where it would be illegal.

 

[SemiAutoSam]

As I recall only a sot can take a title II weapon in to a state where it would be illegal for an individual to do so.
The SOT's reasoning could be to show a PD or Sheriff dept a title II weapon they have shown an interest in with a letter from said LE department.

Any trustee can obtain/store any legal NFA items thru the trust. So in my case a trustee (him) can obtain a suppressor using the trust however that does not allow another trustee (me) to take said NFA item into a state where it would be illegal.