So here is my scenario: I currently posses 2 stamps submitted by me as an individual. I plan on submitting several form 1’s for diy cans and a few sbr’s in the very near future. I would like to setup an NFA Gun Trust for use/access by multiple users and for ease of passing the items on when I die.

My questions:

  1. I’ve read you don’t want to add trustees until after your forms have been approved, otherwise ALL trustees have to submit paperwork, prints etc for each form. Is this accurate?
  2. If Q1 above is accurate, can you establish a trust with just yourself on it, no trustees?
  3. If the answer to Q2 is yes, it would seam the easiest course of action would be to setup my trust with just myself, once that’s complete submit two form 4’s to transfer my existing items into the trust, submit my flurry of form 1’s through the trust (not as an individual), wait for all approvals to come through, then when I’m satisfied I am done submitting forms (for the time being of course) amend the trust to add my trustees. Does that sound accurate?
  4. If the answer to Q2 above is no, then what is the best course of action to accomplish my end goal?
  5. I have read that to establish the trust I will have to file for a EIN from the IRS, and that I will need to open a bank account to fund the trust. Is that accurate?
  6. I have read that you shouldn’t purchase NFA items that are being added to the trust with your own money, you should only use the bank account which was opened by the trust. Is that accurate?
  7. What kind of tax filing is required once a trust has been established? Or is there any tax filing required?
  8. What else do I need to know or keep in mind for this venture?

Thanks in advance for your help!

  • ClemensXIV@forum.guncadindex.comEnglish
    3·
    1 month ago
    1. Correct. They will all have to submit forms for any future purchases.
    2. Yes, you can set up a gun trust with yourself as the only individual on it.
    3. N/a see above
    4. N/a see above
    5. Not necessary with a revocable trust. https://budgeting.thenest.com/need-tax-id-number-trust-grantor-dies-24838.html
    6. Please use your own money and don’t set up a bank account. https://nfalawyers.com/myth-bank-accounts-gun-trusts/
    7. If you set up the trust, any taxable events will be reported on your 1040. If you get an EIN and set up a set up a bank account, you will file a 1041 instead. The only taxable events I can think of would be from a sale of an item from the trust. That doesn’t normally happen with NFA. If you do sell something, then I would investigate the potential tax burden for it.
    8. Don’t overthink it and have fun