FAQs About Colorado NFA Trusts – Part II
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 II of the Colorado NFA Trust FAQs series. Part I is here, while Part III is here. Last updated 7 May, 2015.
I have heard that as long as I am present when my Title II firearm is being used, I can let someone other than myself be in actual possession of the Title II item. Is that true?
Answer: We have heard that, too. Our position is that only trustees of our NFA trust can be in actual or constructive possession of a Title II item. Just because the holder of the tax stamp is present does not mean that it is OK to share, for example, your suppressor. If you want somebody to be able to possess and use the Title II item, make them a co-trustee and inform the ATF of the change. Our NFA Trust is designed so that you can easily add/remove co-Trustees. It is not worth the risk to allow a non-trustee to be in possession of a Title II item.
I have a couple of process questions regarding the firearm I want to build and how I should pay with the NFA trust. For example, should I have the NFA trust buy the original (unaltered) rifle from me?
Answer: No. Please see our Memorandum Regarding NFA Specific Issues that came with our NFA Trust for instructions on how to assign the rifle to the NFA Trust.
Should I update my will once the NFA trust is effective?
Answer: In most cases, no. Our copyrighted NFA Trust is designed to operate independently of your primary estate plan. If your NFA Trust will hold firearms of substantial value and you are a high net worth individual, you may want to coordinate the NFA Trust with your primary estate planning documents. This usually entails an additional fee.
Does the trust need to be registered with the secretary of state like a corporation or LLC?
Answer: No. Our copyrighted NFA Trust is not required to be registered with the state of Colorado or the Colorado courts.
Sir or Ma’am,
I am interested in setting up an NFA trust. My major concern is being in the military, will the trust be valid or accepted in other states that the Army to which the Army may assign me? Also, how long would it take to set up and what are the expenses (both yours, and set up fees, and annual payments)?
Answer: Our NFA trust is valid in all 50 states. However, please keep in mind that certain states effectively prohibit the possession of Title II items within the state (California, for example). The trust does not allow you to possess a Title II item in such a state. In general a trust will not allow you to circumvent any of the laws regarding who can or cannot possess a Title II item.
Our copyrighted NFA Trust is designed so that there are no continuing fees/annual fees. We send an invoice by email and you can pay (electronically) by credit card, echeck, PayPal transfer, etc. Once payment is received, we arrange a time to take the information over the phone/skype/chat or we can send you a form to fill out.
Sir:
I am currently serving in Iraq. Can you set up an NFA Trust for me? Or do I have to wait until I come home?
Answer: We have created many trusts for men and women on active duty in the military and currently deployed. This includes creating NFA trusts for individuals in Iraq. We can usually get the trust set up within 3-7 business days. We can email the paperwork, talk by phone/Skype, chat using Gmail, etc. Not a problem. No reason to wait.
Do you foresee any problems updating beneficiaries or settlors with the BATFE?
Answer: No.
I read about the use of a bank account in the name of the trust, I’m guessing you recommend this, can you elaborate?
Answer: Yes, you should create a bank account in the primary trustee’s name. We have specifically designed our copyrighted NFA trust to allow the primary trustee (who is usually the Settlor a/k/a creator of the trust) to be the only necessary signature on the bank account. This is covered in depth in the Memorandum of NFA Specific Issues that comes with our NFA Trust. Please refer to the memorandum.
Could there be problems if I pay for my first NFA item personally?
Answer: Yes. Please see the Memorandum Regarding NFA Specific Issues that comes with our NFA Trust.
If you don’t find the answer to your question here, you might want to check out FAQs About Colorado NFA Trusts – Part I, or Contact Us with your specific question(s).