Individual versus Trust Pro/Con

9outof10mms

9outof10mms

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I never paid much attention to this corner of the CFF site as I never expected to play in the NFA arena. But my gubbermint had other ambitions for me. So now I get to crash course on this stuff before making my move.

I don't see a sticky or other post that answers registering as an individual versus a trust...or more specifically, a pro/con of the two options.

As I understand from overhearing people talk about NFA items for the past few years, it sounds like a trust is the more flexible way to go but has the con of needing to be set up. What advice would you offer on the subject?

If it matters, I'm looking to SBR a braced pistol as it appears I have no other (legal) option. I don't have any other NFA items. Perhaps there may be some more in the future (i.e. suppressor), but not at moment.
 
9outof10mms said:
I never paid much attention to this corner of the CFF site as I never expected to play in the NFA arena. But my gubbermint had other ambitions for me. So now I get to crash course on this stuff before making my move.

I don't see a sticky or other post that answers registering as an individual versus a trust...or more specifically, a pro/con of the two options.

As I understand from overhearing people talk about NFA items for the past few years, it sounds like a trust is the more flexible way to go but has the con of needing to be set up. What advice would you offer on the subject?

If it matters, I'm looking to SBR a braced pistol as it appears I have no other (legal) option. I don't have any other NFA items. Perhaps there may be some more in the future (i.e. suppressor), but not at moment.
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Well IIRC with the pistols it would have had to be in a trust already to register that way since you can’t now transfer it into a trust, so you’re registering that as an individual anyway. Others can correct me if I’m wrong.
 
Currently, you can register your Not-a-pistol-anymore tax free. Since you owned it personally when the rule took effect, you would have to register it personally.

Currently, your not-a-pistol-anymore is an unregistered SBR which you cannot legally transfer into a trust. In order for a Trust to take possession you need to register it personally (tax free) and then after that's approved you could transfer it to the trust, for $200.
 
I did 4 form 1 cans and 2 sbrs individually. Now have a trust and my first form 4 can is on it. Looking back I wish I had started a trust fir all of them.
 
Catfish said:
Currently, you can register your Not-a-pistol-anymore tax free. Since you owned it personally when the rule took effect, you would have to register it personally.

Currently, your not-a-pistol-anymore is an unregistered SBR which you cannot legally transfer into a trust. In order for a Trust to take possession you need to register it personally (tax free) and then after that's approved you could transfer it to the trust, for $200.
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Well that thar' plain engrish is what i needed to hear!

I do reserve the right to call malarkey on not being able to put it into a trust up front. I guess beggars can't be choosers. Wait...I don't remember taking the appropriate steps to become a beggar.
 
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One trust can own multiples, but you could also create one for each. Having them separate give you more flexibility down the road, flexibility that most folks don’t think they need.

You have a couple paths to choose from if you want it in a trust. File for free as an individual(free form 1), then transfer it to the trust as an NFA item (form 4), or pull the brace and transfer to the trust as a pistol and then have the trust make the NFA item(form 1). Cost is the same for both, I think, advantage to the first is very much faster and no marking requirement.

Someone correct me if I’m wrong, I’m having doubts about a person to person transfer on a form 4.
 
GymB said:
One trust can own multiples, but you could also create one for each. Having them separate give you more flexibility down the road, flexibility that most folks don’t think they need.

You have a couple paths to choose from if you want it in a trust. File for free as an individual(free form 1), then transfer it to the trust as an NFA item (form 4), or pull the brace and transfer to the trust as a pistol and then have the trust make the NFA item(form 1). Cost is the same for both, I think, advantage to the first is very much faster and no marking requirement.

Someone correct me if I’m wrong, I’m having doubts about a person to person transfer on a form 4.
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He can’t pull the brace and transfer it into the trust at this point. It had to have been there prior to 1/31. ETA: can’t do it for the free registration

Now, if the trust already existed, you could create a paper trail to show it was in there prior to the cutoff…but he’s out of luck on that because the dates on the trust being set up will be after that date.
 
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Does the individual route require engraving?

At this point I'm not even gonna apologize for my noob-tastic questions here! YOU stepped into this thread!
 
BigWaylon said:
He can’t pull the brace and transfer it into the trust at this point. It had to have been there prior to 1/31.
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Sure he can - but he won't get any of the special provisions (no marking, no tax). right?
 
9outof10mms said:
Does the individual route require engraving?

At this point I'm not even gonna apologize for my noob-tastic questions here! YOU stepped into this thread!
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No engraving needed for the amnesty affected registration
 
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df0101 said:
No engraving needed for the amnesty affected registration
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Full disclosure, there is a marking requirement for firearms not properly marked by the manufacturer. In practice this means that if you built from an 80% lower then you now have a marking requirement.
 
jjwestbrook said:
I did 4 form 1 cans and 2 sbrs individually. Now have a trust and my first form 4 can is on it. Looking back I wish I had started a trust fir all of them.
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After a lot of reading this was the path I went for my first SBR. Glad I did (even though I messed up my first application and had to refile).
 
9outof10mms said:
Does the individual route require engraving?

At this point I'm not even gonna apologize for my noob-tastic questions here! YOU stepped into this thread!
Click to expand...
Individual route normally does require engraving if you ARE NOT doing the amnesty registration. It’s just your name instead of the trust.
 
I had a Trust setup for my 1st NFA item. All my NFA items are in the Trust. The only value of having the trust for me is that I can legally let someone named in the Trust as a Responsible Person have the NFA item(s) in their possession or use without me being right next to them. Most likely I will pay the $200 to Form1 the pistol brace just so that I can have the item in the trust and be able to allow another RP use it.
 
Wasn’t there something recently that cha he’d the whole RS thing and basically did away with it?
 
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