NFA Trust: Securing Non-NFA items for an AWB?

[Car Ramrod]

Not exactly a Class III question, but I figured this would be the place to ask.

If an AWB was enacted that prohibited the sale/transfer of certain firearms and magazines (Dianne Feinstein Officially Announces Provisions of Upcoming Assault Weapons Ban Bill | The Truth About Guns), would I be able to add my non-NFA items to my NFA Trust to insure they would be able to be transferred to a family member in the event I die, or is this something that would be in the fine print of the AWB? Obviously they would need to be added to the Trust before the enactment date of the AWB.

This is presuming you would not be able to private sale, basically you are stuck with what you have.

 

[CountryBoy19]

That is a very good question. One that ultimatley, cannot be answered until we read the bill. And we have to pass the bill quick so we can read it.

I think it's a very good point, however, there is one problem. You would have to have your trust set up for perpetuity (I think thats the word). IE, it continues long after you're gone. Most trusts don't work that way. Once the grantor dies the trust becomes non-revocable (can't be changed or modified at all) and the assets are to be distributed to the heirs as soon as possible. In that case, I believe the distribution of trust assets to the heirs would be consider a transfer of possession/ownership. In the case of a perpetual trust, when the grantor dies, the trustees can still modify the trust, including the trustees so that new, current trustees are added and old, deceased trustees are removed etc.

 

[CampingJosh]

This would be an instance where it would be better to have a corporation own the firearms. The corporation can be transferred (bought, sold, inherited, etc.) without the owner of the firearm changing.

 

[Dave-O]

If i transfer my class 3 personally owned items to my existing business corporation what tax fees are incurred and what time expectations ? Would it be the same tax per item as when purchased and would it take the same 6 months ? Anyone have experience in this area ?

 

[CampingJosh]

If i transfer my class 3 personally owned items to my existing business corporation what tax fees are incurred and what time expectations ? Would it be the same tax per item as when purchased and would it take the same 6 months ? Anyone have experience in this area ?

Form 4 transfer. $5 per AOW, $200 per for everything else. Supposedly that six months is supposed to be dropping, but I can't verify that.

 

[Dave-O]

So it is your understanding that transfering them from my personal possesion to my corporation entails the same fees and wait as the initial purchase of the item.

 

[CampingJosh]

So it is your understanding that transfering them from my personal possesion to my corporation entails the same fees and wait as the initial purchase of the item.

Yes. Except that you personally own them the whole time you are waiting, so it's not like it's sitting in a dealer's safe somewhere. You can still use it. Then when you get the stamp back, it belongs to the corporation.