FAQs About Colorado NFA Trusts
In reviewing our FAQ pages, please keep in mind that we are talking specifically about our Colorado NFA trust and not a trust off the Internet, drafted by another lawyer or another company. Also keep in mind that answers to your specific questions are very specific to your particular situation and facts surrounding that situation. FAQs should be considered general background information. Access to this website does not create an attorney-client relationship. Consult legal counsel before acting on any information contained in an FAQ or anywhere else on our website.
Note. This is Part I of the Colorado NFA Trust FAQs series. Part II is here, while Part III is here. Last updated 7 May, 2015.
How do I add items to my Colorado NFA Gun Trust as time goes on?
Answer: By either transferring the item to the Colorado NFA Gun Trust or purchasing the item in the name of the trust – this is explained in detail in our trust supporting documents and assignment form which come with all our Colorado NFA Trusts.
Can I remove items from my Colorado NFA Gun Trust?
Answer: Yes, our Colorado NFA Trust is designed to allow you to remove Title II or Title I firearms from the trust. However if it is a Title II firearm, a new tax stamp is required. In addition, starting July 1 2013 there will be a background check requirement for all firearm transfers out of the trust.
What is the difference between a Title II weapon and a Class III weapon.
Answer: Nothing. The problem is the term Class III is being used incorrectly. Class III refers to the type of dealer license necessary to sell Title II firearms. So, when a person refers to a “Class III” or “Type III” firearm, they are technically incorrect. What they really mean is a Title II firearm. We have given up trying to correct people on this point because the terms get used interchangeably.
Another family member is a resident of Colorado and has existing firearms. Can he and I put all our firearms in the Colorado NFA trust yet designate different beneficiaries?
Answer: Can he list one gun as being willed to son 1 and another gun as begin willed to son 2 and so on? Yes, but we bill by the hour for that type of custom work. Frankly, we do not suggest this technique. The better option is separate gun trusts.
Can I name my Colorado gun trust anything I want? I want something without my name in it for privacy.
Answer: Yes, you can make the Colorado NFA Gun Trust name just about anything within reason. We suggest keeping the Colorado NFA trust name short just in case you ever manufacture an item (ATF Form 1) and have to engrave the Colorado NFA Gun Trust name on the item. Our trust supporting documents cover this issue in great detail.
I have access to a notary on the military base here in Iraq, but he is not from Colorado, does that matter? My brother who I want as co-trustee is in Washington state — can he use the notary in his home state?
Answer: Yes, we have structured our copyrighted Colorado NFA Gun Trust so that you can use the notary on your military base in Iraq or anywhere else in the world. Your co-trustee can use the notary in Washington state or any other state.
How vital is having a separate checking account? I am on a military base and this may be a problem for me to accomplish remotely — setting up a checking account.
Answer: We really prefer that a checking account be created for the Colorado NFA Gun Trust and purchases of all firearms occur from the gun trust checking account. If that is not possible, please see the supporting materials for your Colorado NFA Gun Trust – the supporting materials explain how to document a transfer when you do not use a Colorado NFA Gun Trust checking account. Long term, we strongly recommend that all purchases be paid for out of the Colorado NFA Gun Trust financial account. There are numerous online checking account options available, and the account can be created from anywhere in the world.
Do all the trustees have to sign on the same day at the same time?
Answer: No, the NFA trustees do not all have to sign on the same day. We have specifically designed our Colorado NFA Gun Trust so that the Settlor and primary trustee can sign on day one and the co-trustees can sign on day 2 or day 20 for that matter.
Should I notify the BATF when I add co-trustees? I have been told I do not have to. After all, as Settlor, aren’t I the “face” of the trust?
Answer: We prefer that the BATF be notified.
FYI: The Settlor is not the face of the Colorado Gun Trust – at least our trust. The TRUSTEE and the other co-trustees are the face of the trust. This is a common point of confusion. Under our standard gun trusts, it is the trustees who have the right to be in possession of title II items – NOT the settlor, the beneficiaries or the successor trustees. It just so happens that the settlor is often a trustee or co-trustee and lifetime beneficiary, but it does not have to be so. This is a very important point. Many people believe that by being the settlor and/or a beneficiary, they can legally be in possession of title II firearms. Not true. It depends on the trust terms.
Should I, the primary trustee and Settlor, get the original signature pages from my co-trustees?
Answer: Yes. The co-trustees should send their notarized copies to you and you should send them back a COMPLETE copy of the trust with all executed pages.
Do I need to list all the trustees on the checking account or can I only list one mainly for succession?
Answer: That depends on what the Colorado NFA Gun Trust says. We design most of our Colorado NFA Gun Trusts so that when the Settlor is acting as a co-trustee, he/she can be the only signatory on the trust checking account. In that situation, you can list all the trustees on the checking account, but you do not have to.
The bank/credit union is requesting a copy of the legal trust pages that “provide the signatures that established the trust” and the “trustee designation”. Does the 4 page copy of the certification of trust usually satisfy bank requirements?
Answer: The certification of trust that comes with our standard gun trust should satisfy the bank/credit union, but it may not. Most banks just want the first couple pages and the signature pages. Some will accept a certification of trust. Others require a complete copy of the trust. In all cases, we suggest including the section of your trust that clearly states when you (the Settlor and trust creator) are trustee you can act alone. In most cases, the first couple pages of the trust, the page showing your right to act alone and the signature page of your trust (not the trust amendment) will be enough.
FYI: Do not confuse the Certification of Trust with the term Declaration of Trust. They mean different things.