FAQs About Colorado NFA Trusts – Part III
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 III of the Colorado NFA Trust FAQs series. Part I is here, and Part II is here.
Q: I wanted to know about possibly moving to other states with your Colorado NFA trust / title II firearms. I understand that the Colorado NFA trust will not provide any legality in terms of owning title II items if a state prohibits them, but say I move to a state that does allow title II. How difficult would it be to amend or file?
A: Moving to another state should not be a problem. Maine is the only state I am aware of that mandates an amendment to a firearms trust to make Maine law apply. Sometimes, a dealer will balk even though they should not. In that situation, we suggest a minor amendment to make that the law of state XX apply.
If you do move to a state that prohibits title II firearms (or other firearms and accessories), your Colorado NFA trust allows you to appoint a co-trustee in a state where the firearms are legal; and then the title II firearms can be stored in that state with that co-trustee.
Q: Can an NFA trust be used for non-NFA items if needed? Meaning other personal possessions?
A: Our trust is specifically designed to hold firearms AND allow the trustees to possess and use the firearms. Our trust should be used for firearms and firearm related accessories. We do not recommend using the trust for anything else because it is not your typical estate planning trust.
Q: Can I meet with you before deciding whether to proceed with the trust?
A: Sure. Keep in mind that brief phone consults are free. That said, I am happy to meet with you.
However, I do bill for my time when we meet prior to executing the trust. My current hourly rate is $375/hr.
The investment in your trust is based upon (a) an initial conference by telephone, (b) review of the initial drafts and memo by telephone, and then (c) an in person meeting where we execute the documents, scan them to file for you, email you a soft copy and prepare a binder complete with subsections to hold your trust and related documents. Quite a deal, if you ask me.
Q: When I go to the class 3 dealer, do I bring my original Colorado NFA Trust?
A: This is covered in the detailed memorandum that comes with your Colorado NFA Trust. A copy should be fine.
Q: I have an existing S-Corporation. Can I use it to hold my title II firearms?
A: It would be unwise to use an S-Corporation or other entity (LLC, Partnership, etc.) not specifically designed to (a) possess firearms and (b) comply with Colorado law.
Q: Can I create a Colorado NFA trust with my spouse/friend? A “joint trust” with joint settlors?
A: You can and we have; but we try to deter people from doing so. The issue (we have found) is if a joint settlor dies or parts ways, it becomes very difficult (translated – $$$$$) to amend the trust. Plus, the beneficiaries are not always the same for both settlors. By the time we are done, the cost is about the same as doing two, separate trusts. Each of you can be co-trustee on the other’s trust.
Q: Can I create a Colorado NFA trust and let a co-trustee buy title II firearms and put them in the trust?
A: Sure. Keep in mind, whoever is the trust maker/settlor is in COMPLETE control; so if a co-trustee buys a firearm in the name of the trust, the trust maker / settlor can exclude the co-trustee at any time. At the death of the trust maker / settlor, the trust property will pass to the trust beneficiaries and successor trustee(s).
Q: Should I transfer all my firearms to your Colorado NFA Trust?
A: Keeping in mind that we are talking in general and that we are talking about our Colorado NFA trust (and not a trust drafted by another lawyer, law firm or company), it is typically a good idea. I waffled on this issue until I read a couple recent cases where the police confiscated firearms of an individual who became a prohibited person. Went something like this. Gun owner charged with domestic violence.
Police showed up and confiscated all firearms. Charges dropped. Guns already destroyed or in general police refuse to return the guns. With our trust, the co-trustees could keep possession and, in theory, the police should not be able to confiscate.
