Welcome to MGO's Internet Discussion Forums…Please Consider Becoming a Dues-Paying Member of the ORG…Click >>>>>HERE<<<<< for more info…………****DONATIONS**** can also be made toward MGO's Legal Defense Fund and/or MGO's Forums >>>>>HERE<<<<<

AmazonSmile

Page 1 of 8 12345 ... LastLast
Results 1 to 10 of 74
  1. #1
    Legal Forum Contributor / Super Moderator Shyster's Avatar
    Join Date
    Aug 2008
    Location
    Riverview
    Posts
    8,809

    NFA Trusts by Makowski Legal Group, PLC

    Well, there was a 20+ page thread on this that unfortunately was posted in a subforum that auto-deletes so here is a repost. Please feel free to ask any questions. Here is how the thread started lo these many months ago.



    I have had several inquiries over the last few days about NFA Trusts. I posted most of this last night but it disappeared with the server issues we had.

    If you are interested in purchasing a NFA device (SBR/SBS, machine gun or silencer) it is a poor idea to do so in an individual capacity. An NFA Trust or Corporation allows far greater flexibility and may in fact save you money in the long run. The NFA Trust is the preferred vehicle since there are annual fees and reporting requirements for LLCs that are not associated with NFA Trusts. The following is an excellent explanation as to why one would wish to establish such a trust:


    An NFA trust is a legal instrument which must be properly drafted to be valid. It is an estate planning tool which can be used to acquire NFA (Class 3) weapons, suppressors and destructive devices. The trust instrument is usually a revocable trust which can be changed or modified at any time before the maker's death. This form provides flexibility. Trustees or beneficiaries can be added or deleted. Property can be transferred to or from the Trust. Such transfers must be documented in writing. A gun trust may own many NFA items. There is no need to set up a separate trust for each NFA item acquired. NFA items are transferred into the trust by means of an ATF Form 4. Non-NFA item such as paintings, collectables, rifles, pistols and shotguns are transferred to or from the trust by means of a bill of sale. The Form 4 and bill of sale document the transfers of property to and from the trust. This is very important as the Trustee who eventually distributes the trust assets upon its termination needs to know what the trust owns at a time when there is no one left alive to ask. It is these documents which provide a legal chain of title and evidence of ownership in the Trust.

    Class 3 Gun Trusts Can Last Several Generations

    Unless the trust property is transferred out of the Trust it remains a trust asset until the trust terminates. This provides a continuity of ownership for several generations. A gun trust usually provides for disposition of property much like a will but the assets remain in the trust for several generations. A typical well written NFA gun trust will last years after those who created it have passed away as well as the initial beneficiaries.

    NFA Trust Property Distributed When Trust Terminates

    When the trust terminates, typically about 70 years after it is formed, the assets on hand are distributed by the trustee to the beneficiaries. These are usually the grantor's grandchildren. NFA items distributed at the end of the trust are taxed. Each transferee must pay the $200.00 transfer tax for each Class 3 item. This is different from a decedent's estate where Class 3 items pass tax free to one's heirs. The heirs (or their transferees) must pay the $200.00 transfer tax when they sell or transfer their inherited NFA item.

    Trustee Administers Trust Assets for Trust Beneficiaries

    Trustee(s) administer the trust's assets for the benefit of the beneficiaries. When the Trustor/Grantor (creator of the Trust) dies the trust usually continues with a successor Trustee administering the trust for the remaining beneficiaries. Because the trust lasts such a long time, successor Trustees and contingent beneficiaries should also be designated. Such trusts are often used when the Chief Law Enforcement Officer (CLEO) of an NFA buyer's home city refuses to sign a Form 4 authorizing the transfer of an NFA weapon. CLEO signoffs have become an ever increasing problem in today's security conscious world. An NFA trust or corporation is a separate legal entity. It is the actual purchaser of the NFA item and not an individual. Since an individual is not the purchaser (transferee) on the Form 4 (NFA transfer document) no CLEO approval is required. No fingerprint cards or photographs are required for transfers of Class 3 items to a trust.

    You must establish the Trust prior to submitting your Form 4 for the purchase.



    I will prepare the Revocable Trust and all related documents necessary to establish a NFA trust in the State of Michigan. The client will receive all necessary documents with instructions on how to complete the necessary paperwork.

    FEE: My fee for this will be $400.00. If you are an MGO Member or become one at the time I prepare the Trust my fee will be $350.00. PLEASE NOTE THIS IS FOR A STANDARD NFA TRUST. IF FOR SOME REASON YOU NEED A CUSTOM TRUST DRAFTED THE FEE WILL BE MORE.

    Why choose me? Since suppressors have been legalized in Michigan, I have prepared over a hundred without any issues with the BATFE. The documentation you receive is rock solid and I am more than happy to assist people if they have any questions throughout the process.

    If you are interested in this service please contact me via PM or at NFATrust@makowskilegal.com and we can get the ball rolling. While I always welcome meeting people there is no need to do so in this case and everything can be handled online.
    Last edited by Shyster; 03-27-2014 at 02:08 PM.
    DISCLAIMER: The opinions expressed in my posts are my own and do not necessarily reflect the opinions, views, or official policies of Michigan Gun Owners. Any opinion I express on an issue should not be considered legal advice.

    For those interested in establishing an NFA or Gun Trust click here. For my contact information click here. Follow me on Twitter @makowskilegal or my website www.makowskilegal.com

  2. #2
    MGO Member kryl's Avatar
    Join Date
    Apr 2013
    Location
    SE Oakland County
    Posts
    1,484
    What could cause it to be a custom trust as opposed to a standard one?
    Thanks

  3. #3
    Legal Forum Contributor / Super Moderator Shyster's Avatar
    Join Date
    Aug 2008
    Location
    Riverview
    Posts
    8,809
    Quote Originally Posted by kryl
    What could cause it to be a custom trust as opposed to a standard one?
    Thanks
    Kind of hard to say. It would have to be something seriously out of the ordinary. I have had a couple so far that I probably SHOULD have charged extra for but I didn't.
    DISCLAIMER: The opinions expressed in my posts are my own and do not necessarily reflect the opinions, views, or official policies of Michigan Gun Owners. Any opinion I express on an issue should not be considered legal advice.

    For those interested in establishing an NFA or Gun Trust click here. For my contact information click here. Follow me on Twitter @makowskilegal or my website www.makowskilegal.com

  4. #4
    I am a Forum User
    Join Date
    Mar 2012
    Location
    detroit
    Posts
    189

    Adding items to a trust

    First, thank you for the explanation of what a trust is/how it works.

    I just need clarification on a few points to help me decide whether to go this route:

    After we set up a trust, do I need to go through you to apply for/add NFA items to it or would I simply mail documentation to you after the fact to update the contents of the trust?

    Are you the trustee or can a non-attorney be designated as such?

    If attorney fees are associated with the application for/addition of new items to the trust, how much are they?

    Thanks again for your many fine posts. I've learned quite a bit here over the past couple years, and you have a well earned reputation.

  5. #5
    Legal Forum Contributor / Super Moderator Shyster's Avatar
    Join Date
    Aug 2008
    Location
    Riverview
    Posts
    8,809
    Quote Originally Posted by detroitbassist
    First, thank you for the explanation of what a trust is/how it works.

    I just need clarification on a few points to help me decide whether to go this route:

    After we set up a trust, do I need to go through you to apply for/add NFA items to it or would I simply mail documentation to you after the fact to update the contents of the trust?

    Are you the trustee or can a non-attorney be designated as such?

    If attorney fees are associated with the application for/addition of new items to the trust, how much are they?

    Thanks again for your many fine posts. I've learned quite a bit here over the past couple years, and you have a well earned reputation.
    Once the trust is set up you submit copies along with your Form 4 to the BATF for approval. I provide you with everything you need to add/change/delete the trust property--generally there is no need for reoccurring attorney fees.

    You are the Trustee not I. The only time an attorney would need to be involved after the initial setup is if you need to make significant changes to the trust requiring an Amendment, for which I charge a nominal fee.
    DISCLAIMER: The opinions expressed in my posts are my own and do not necessarily reflect the opinions, views, or official policies of Michigan Gun Owners. Any opinion I express on an issue should not be considered legal advice.

    For those interested in establishing an NFA or Gun Trust click here. For my contact information click here. Follow me on Twitter @makowskilegal or my website www.makowskilegal.com

  6. #6
    Legal Forum Contributor / Super Moderator esq_stu's Avatar
    Join Date
    Nov 2006
    Location
    West Bloomfield
    Posts
    7,627
    PM sent
    All the best,

    --esq_stu
    NRA Life Member
    NRA Certified Instructor: Basic Pistol, Personal Protection in the Home, Personal Protection Outside the Home


    The above comments are not intended to be and do not constitute legal advice to anyone.

  7. #7
    I am a Forum User
    Join Date
    Oct 2013
    Location
    Osseo, Michigan
    Posts
    10
    Your choice of forum names induces LOADS of confidence.

  8. #8
    I am a Forum User
    Join Date
    Feb 2004
    Location
    Shiawassee County
    Posts
    842
    Is a special trust for gun purchases necessary, if a family estate trust already exists? My Father and Mother created a family trust prior to her death, and my father is the trustee until his death, when I become the successor trustee. This was done in the state of Missouri. Could I use this trust for my own firearms that I currently own, in order to protect them for my grandchildren, or would I need to create my own family trust?

  9. #9
    MGO Member GreaseMonkeySRT's Avatar
    Join Date
    Jul 2009
    Location
    Brighton
    Posts
    6,024
    Quick question. If I got a trust in Michigan, and moved to another state, can it be transferred to another state? I guess....what are the options in that scenario?

  10. #10
    Legal Forum Contributor / Super Moderator Shyster's Avatar
    Join Date
    Aug 2008
    Location
    Riverview
    Posts
    8,809
    Quote Originally Posted by Big50shooter
    Your choice of forum names induces LOADS of confidence.
    I am a firm believer in never taking myself too seriously.

    Quote Originally Posted by One of Many
    Is a special trust for gun purchases necessary, if a family estate trust already exists? My Father and Mother created a family trust prior to her death, and my father is the trustee until his death, when I become the successor trustee. This was done in the state of Missouri. Could I use this trust for my own firearms that I currently own, in order to protect them for my grandchildren, or would I need to create my own family trust?
    Usually you would want a separate Trust for firearms because those you may wish to allow access to your firearms may not be the same as those you wish to inherit from you. Also, the Gun Trust contains specific language that offers legal protections not contained in a regular Trust.

    Quote Originally Posted by GreaseMonkeySRT
    Quick question. If I got a trust in Michigan, and moved to another state, can it be transferred to another state? I guess....what are the options in that scenario?
    Depending on which state there shouldn't be a problem.
    DISCLAIMER: The opinions expressed in my posts are my own and do not necessarily reflect the opinions, views, or official policies of Michigan Gun Owners. Any opinion I express on an issue should not be considered legal advice.

    For those interested in establishing an NFA or Gun Trust click here. For my contact information click here. Follow me on Twitter @makowskilegal or my website www.makowskilegal.com

Page 1 of 8 12345 ... LastLast

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •  
only search Michigan Gun Owners Forums
MGO's Facebook MGO's Twitter