Ive been interested in forming a trust to get nfa items. Ive read on the ar15/silencertalk forums, and googled as much as I could about this, but most of the info ive found has been regarding one person using/owning the nfa items. In my situation, i'm trying to set it up so that the trust includes 2 people (non married) owning the nfa items. Im aware of the chance of falling out, and them being able to sell the items, this is not an issue to me.
So far, what it seems that im after is a Revocable shared living trust. This is for Texas. My partner and I are the grantors/trustees. His spouse is the beneficiary, and a mutual friend of the grantors is the successor trustee. The property in this trust at this time is just the nfa item.
Here is a basic copy of the trust. I replaced our names with initials. I dont know the details of the suppressor yet so i just put "suppressor make model serial" (until that info is known?)
http://www.fileden.com/files/2006/11/13/375402/testtrust.rtf
Due to this being more than a typical one person, one nfa item setup, I first doubted being able to do this without a lawyer, however, after more research it seems this should be possible. Am i going in the right general direction by choosing a shared living revocable trust? Ive heard its not possible to set this up correctly with quicken, is that true? I also heard that its not possible to have 2 people as grantors/owners of an nfa item per:
"See 26 U.S.C. section 5841, as
implemented by 27 C.F.R. section 179.101. For purposes of these
statutory provisions, the term "person" is defined as "[a]
partnership, company, association, trust, estate, or corporation,
as well as a natural person. See 27 C.F.R. section 179.11. This
definition does not include married couple or, for that matter, any
other dual or multi-party entities with the exception of formally
established partnerships, companies, associations, and
corporations. Indeed, there exists no statutory or regulatory
authority that can be construed to permit the transfer or
registration of an NFA firearm, on a joint basis, to two or more
natural persons, including two natural persons constituting a
married couple. Accordingly, such transfers and registrations
cannot be approved."
Additionally, i found that per texas law:
"Sec. 112.001. METHODS OF CREATING TRUST. A trust may be created by:
(1) a property owner's declaration that the owner holds the property as trustee for another person;
(2) a property owner's inter vivos transfer of the property to another person as trustee for the transferor or a third person;
(3) a property owner's testamentary transfer to another person as trustee for a third person;
(4) an appointment under a power of appointment to another person as trustee for the donee of the power or for a third person; or
(5) a promise to another person whose rights under the promise are to be held in trust for a third person."
So im guessing I fall under either 1 or 2 on that list?
Thanks to all who took the time to read this. I have a bad habit of making things more complicated than they are, I think this may be the case here.
So far, what it seems that im after is a Revocable shared living trust. This is for Texas. My partner and I are the grantors/trustees. His spouse is the beneficiary, and a mutual friend of the grantors is the successor trustee. The property in this trust at this time is just the nfa item.
Here is a basic copy of the trust. I replaced our names with initials. I dont know the details of the suppressor yet so i just put "suppressor make model serial" (until that info is known?)
http://www.fileden.com/files/2006/11/13/375402/testtrust.rtf
Due to this being more than a typical one person, one nfa item setup, I first doubted being able to do this without a lawyer, however, after more research it seems this should be possible. Am i going in the right general direction by choosing a shared living revocable trust? Ive heard its not possible to set this up correctly with quicken, is that true? I also heard that its not possible to have 2 people as grantors/owners of an nfa item per:
"See 26 U.S.C. section 5841, as
implemented by 27 C.F.R. section 179.101. For purposes of these
statutory provisions, the term "person" is defined as "[a]
partnership, company, association, trust, estate, or corporation,
as well as a natural person. See 27 C.F.R. section 179.11. This
definition does not include married couple or, for that matter, any
other dual or multi-party entities with the exception of formally
established partnerships, companies, associations, and
corporations. Indeed, there exists no statutory or regulatory
authority that can be construed to permit the transfer or
registration of an NFA firearm, on a joint basis, to two or more
natural persons, including two natural persons constituting a
married couple. Accordingly, such transfers and registrations
cannot be approved."
Additionally, i found that per texas law:
"Sec. 112.001. METHODS OF CREATING TRUST. A trust may be created by:
(1) a property owner's declaration that the owner holds the property as trustee for another person;
(2) a property owner's inter vivos transfer of the property to another person as trustee for the transferor or a third person;
(3) a property owner's testamentary transfer to another person as trustee for a third person;
(4) an appointment under a power of appointment to another person as trustee for the donee of the power or for a third person; or
(5) a promise to another person whose rights under the promise are to be held in trust for a third person."
So im guessing I fall under either 1 or 2 on that list?
Thanks to all who took the time to read this. I have a bad habit of making things more complicated than they are, I think this may be the case here.