How to convert current NFA items into a Trust?

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  • turnerdye1

    Master
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    60   0   0
    Dec 26, 2010
    2,090
    63
    North Central IN
    I have 3 silencers already that I've purchased in the past couple years. Two of them were done on paper forms as an individual. One of them was done on a SilencerCo Kiosk as an individual.

    I am looking at adding two SBR's to the collection and wondered if it would be easier to do a trust at this point. Mainly for passing the items on to the wife or kiddo's if something were to happen to me.

    Would I have to pay the tax stamp again on the three silencer's I already have when moving them into a trust?
     

    Scuba591

    Expert
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    16   0   0
    Jan 22, 2013
    936
    43
    Noblesville
    I have limited knowledge on this; but, yes. That is my understanding that tax stamps will have to be paid to move them all into a trust.
    Mine are complicated since one of my trusts has multiple co- trustees that will need additional fingerprinting done in order to keep them on the newly created trust.
     

    EOD Guy

    Sharpshooter
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    20   0   0
    Mar 8, 2012
    553
    43
    Carroll County
    I believe Scuba is correct. Transferring from you into a trust is transferring the “ownership”, costing you $200 per item. You can always keep them as-is and place any new items on the trust. If anything happens to you, any items in your name is allowed to pass to an estate heir tax free. Just direct them to place these items on the family trust as your successor.

    The biggest benefit of a trust allows multiple people access to NFA items along with protecting any item “outlawed”, yet grandfathered. Kind like full autos….nothing past 86 can be transferable to normal folks not licensed as a FFL with NFA powers.
     

    amafrank

    Marksman
    Rating - 0%
    0   0   0
    Jan 18, 2012
    217
    18
    Hagerstown
    A trust is a legal entity and anything you transfer to a trust will require a tax paid transfer. That means if you want all your stuff in the trust you're going to pay the $200 or $5 tax on every item you transfer to it. Even if the items belong to you personally they will require the tax paid transfer to go to the trust, you're not your trust, you're just a member.
    It can be very costly to have a trust and you need to decide if it is really worth it before you go that route. Its something to discuss with your estate planner or accountant. Unless you've got a kid or two who you really want to set loose unsupervised with your suppressors and stuff I don't see a good reason for the trust. They no longer get you any advantage on transfers and if you're worried about transferring stuff to your heirs you can do that with form 5's tax exempt to any legal heir, family or otherwise.
    Think carefully and do some research.

    Frank
     

    MCgrease08

    Grandmaster
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    37   0   0
    Mar 14, 2013
    14,373
    149
    Earth

    I used Marc Halata to help me set up my trust. I don't have anything in it yet :(, but the process was easy, inexpensive, and he was easy to work with.
     

    100 bullets

    Plinker
    Rating - 100%
    2   0   0
    Aug 6, 2010
    85
    6
    Georgia
    Yeah I know the answer sucks, but if you want to switch transferable items from yourself to your trust you would have to pay the tax again. You are transferring the item.
     
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