NFA Trust

[themalicious0ne]

Can someone please explain to me how the nfa trusts are affected this July 1st. I thought the cleo sign off will be gotten rid of and a guy just told me that trusts will be grandfathered in before that date.

Should I get a suppressor and or trust before this goes into effect or will it be better or easier to wait. He told me the time was now and I am confused because I thought after this goes through it will be easier.

 

[Sharkbite]

After 41f takes effect all members of the trust will need to submit fingerprints and do a backgroung check to add NEW NFA items onto the trust.

Getting your trust done before that will only prevent that from happening with items ALREADY in the trust before 41F takes effect.

What is made easier after 41f goes into effect is the ability to file as an individual and not need to get a CLEO signoff. Some areas (mine) the CLEO refused to sign any form 1 or 4's. Just flat out said "NO".

A trust sidestepped this roadblock and allowed me to start my stamp collection. Up to 9 now!!!

 

[James K]

Correct. With a very few exceptions, the only reason for a trust was to bypass the CLEO sign-off, which too many CLEO's refused, misinterpreting it as an approval or a license. By making that a CLEO notification only, the reason for the trust goes away.

Anyone considering buying should wait until the regulations are finalized, and the trust not needed. All trustees of new trusts will have to have the same ID check as individual gun owners. Those who already own guns under trusts will not be affected unless they add new guns to the trust holdings, in which case the new rules apply. If the trust proves cumbersome, AFAIK, an established trust can sell its gun(s) to a trustee (or any other non-prohibited person), then the trust can be dissolved, but that would follow the same rules and taxes as any other transfer.

Jim

 

[themalicious0ne]

So I should wait instead of trying to set up a trust now for 1 purchase. Also if not grandfathered in you will need to get fingerprinted every 2 years. What are the ramifications of that. Say you are a week late?

I want to get a suppressor in the near future and don't know if I should do it right now through a trust or do it after it goes through. I guess my question would be for one purchase, should I set up a trust for it or not?

 

[Bill DeShivs]

A trust has other benefits than avoiding CLEO sign off. Trustees can possess the NFA item. If an individual owns an NFA item, only that individual can possess the gun. So, If you want your wife, children, buddies, etc. to be able to use the gun, a trust is the way to go.

 

[Theohazard]

Also if not grandfathered in you will need to get fingerprinted every 2 years. What are the ramifications of that. Say you are a week late?

You're a little confused here. There's no "trust grandfathering" going on here. Also you don't need to do it every two years unless you're buying another NFA item.

Setting up an NFA trust will be the same after 41F goes into effect as it is now. However, if you're using a trust to buy an NFA item and your Form 1 or Form 4 is postmarked after 7/13/2016, every "responsible person" on the trust will have to submit their fingerprints, a photo, and an NFA Responsible Person Questionnaire to both your CLEO and the ATF when you buy an NFA item. This is good for two years.

But you only need to do this extra process when you're buying an NFA item: Submitting the fingerprints, a photo, and an NFA Responsible Person Questionnaire once lets you submit as many Form 1s and Form 4s in a two-year period as you want. After the two years is over, you have to send in another set of fingerprints, a photos, and NFA Responsible Person Questionnaires ONLY if you're buying another NFA item. So if you don't buy any NFA items after that two-year period is up, you never have to do it again.

Here's a good overview that SilencerCo wrote up:

https://silencerco.com/blog/2016/02/11/buying-a-silencer-6-things-you-need-to-know-about-atf-41f/

 

[themalicious0ne]

So there is no longer any cleo sign off. Now it is just informing them not getting approved by them correct?

 

[Theohazard]

Correct. So if you want other people to be able to possess your NFA items when you're not around, use a trust. Also a trust can make it a little easier to pass on your NFA items after you die. Otherwise, I can't think of any good reason to use a trust after July 13th.

 

[themalicious0ne]

Understood. Thanks for the help. That's exactly what I thought it was but a guy I work with just got one and we were bickering and he was telling me otherwise.