imported post
More info on the Trust route here:
http://floridashootersnetwork.com/phpbb/viewtopic.php?t=17743&sid=041b303b37a4ce85396c240616f37eec
Firearms Trust FAQs
What is a trust:
A Trust is a legal entity and can own both real and personal property in its own name (at least in Florida) and as such is no different than a Corporation holding NFA items. Under the United States Department of the Treasury, Bureau of Alcohol, Tobacco and Firearms, Federal Firearms Regulations, Part 179 “Machine Guns, Destructive Devices and Certain Other Firearms”, Section 179.11 specifically defines a Person (i.e. someone who is authorized to purchase NFA) to include Trusts as well as Corporations. If someone does not want to deal with signoff or cant get it, the corporate or trust route is the only answer.
Does the Trust require separate tax numbers/returns:
A Revocable Trust does not need a separate tax ID (you use your own SSN) and gains/losses are passed through on the grantor’s taxes and taxed to the grantor
Can I make changes to my Trust:
The trustee has the power to amend or revoke the trust or the power to reach the assets at will.
Will the Trust prevent creditors from reaching my NFA iems:
A Revocable Trust will not generally provide any more protection of the assets from creditors than a owning them individually. I say generally since the assets are held in the name of the trust and not your individual name so a creditor may have trouble finding them. A smart litigator may be able to find and reach the trust assets or at least the proceeds from their sale. An irrevocable trust may offer some protection in this regard. However, I generally am against using an irrevocable trust (except in certain situations where it is necessary i.e to hold life insurance for purposes of avoiding estate tax) simply because it is irrevocable and in the event of a change in circumstances/law/finances/ etc., you cannot make any changes to the trust or reach the assets (i.e you are screwed). That being said, if you set up a corporation just to hold the NFA items, then there is a very good chance that a good litigation attorney may be able to pierce the corporate veil and reach the assets anyway. I don’t advocate the use of the trust for purposes of asset/liability protection. Many of the asset protection schemes I have run across over the years have seemed less that concrete in their protection and some downright shady. If you are worried about asset protection you might want to consider good insurance. I advocate the Trust simply as an alternative to a corporate vehicle for those who want NFA and can’t get LE signoff or don’t want to bother with it, or who want to save money in the long run.
You mentioned saving money, can a Trust save money:
In addition to the set up costs, a Corporation costs $150 per year (the fee for filing the Florida Corporate Annual Report). This fee, which is subject to increase as the state sees fit, must be paid every year to keep the corporation active. This can get expensive in the long run and failure to pay the annual fee will result in the corporation being administratively dissolved. If this happens and the corporation owns NFA items then you have a serious legal problem. Reinstating the dissolved corporation, if possible, would incur a $500.00 filing fee. A Trust has no requirement for annual fees and is not registered with the state, so the savings is a minimum of $150 a year. Here is a good example. I sold a .22 suppressor to a customer for $300.00 He had already set up a corporation (he paid $250.00 to set up the corporation). He has had the suppressor now for 5 years. With the annual fees and set up cost he has paid $1,000.00 and will continue to pay $150 a year as long as he wants to keep the suppressor. A lot of money for a $300 suppressor.
How about Privacy:
A Trust is not registered with the Secretary of State like a corporation. The address of a corporation and its officers names and addresses are available on the internet from the State of Florida Division of Corporations. So if you set up a corp to buy an NFA item and use your home address and keep the item at home, conceiveably someone could look up your name and see the address you use for the corp and figure out where the NFA items are kept. Maybe a longshot, but when dealing with NFA, my belief is you can never be too careful.
What happens to the NFA items in the trust when I die:
The standard trust I prepare provides for the assets to be liquidated by the successor trustee and the proceeds to be distributed to the beneficiary or beneficiaries as the case may be, that you designate. You can provide for the items to be distributed directly to the beneficiaries at your death as well, but there are other considerations that should be discussed with any attorney before completing the trust documents.
Are Transfers for Trusts faster or slower than individual or corporate transfers:
With a transfer to a legal entities (like trusts or corps) there are no fingerprints or photos submitted with a transfer of an NFA item so “theoretically” the transfers should go a "little" faster (but I have gotten individual Form 4 transfers sometimes quicker than Form 3s submitted on the same date so who knows what to expect with the ATF)
Which way should I go:
Well review the above and make your own decision. If you already have a corporation that you are using for other business and you have no problems with other partners, liability, corporate creditors, etc., then that may be the way to go. If you don't already have a corp, then depending on your situation and the above matters, a Trust may be the way to go.
An Attorney can Draft one up for anywhere from a few hundread bucks to 1,000's.
OR
you can buy Quicken Willmaker 2006 and make one yourself for 50 bucks.
More info here as well:
http://sigforum.com/groupee/forums/a/tpc/f/630601935/m/669101014/p/1