Sample NFA Trust

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  • Maryland_Shooter

    Banned
    BANNED!!!
    Feb 8, 2008
    917
    Glen Arm
    [Your Name]/Address of Trust





    [Your Name]Revocable Living Trust
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    Declaration of Trust

    Your Name, grantor, declares that he has transferred and delivered to the trust all his interest in the property described in Schedule A attached to this Declaration of Trust and included by reference.

    All property is hereby the "trust property." The trustee, [Your Name], hereby acknowledges receipt of the trust property and agrees to hold said property in accordance with this Declaration of Trust.

    The grantor may add property to the trust by adding said property to Schedule A, attached, and included by reference, thereby any additions become property of the [Your Name] Revocable Living Trust.

    This Declaration of Trust may from time to time and as the need arises, be amended only by the grantor, [Your Name].

    I Amendment and Revocation
    A. Amendment or Revocation by Grantor

    The grantor may amend or revoke this trust at any time, without notifying any beneficiary. An amendment must be made in writing, signed and notarized by the grantor.


    B. No Amendment or Revocation by Other Person

    The power to revoke or amend this trust is personal to the grantor, [Your Name]. No conservator, guardian or other person(s) shall exercise it on behalf of the grantor, unless grantor expressly grants power to revoke or amend this trust in writing or by Power of Attorney specifically naming the trust.

    C. Payments From Trust During Grantor's Lifetime

    The trustee shall, at his sole discretion, pay to or use for the benefit of the grantor and or beneficiaries, as much of any net income and principal of the trust property as he deems reasonable.

    II Trustees
    [Your Name] shall be the Trustee.

    A. Trustee's Responsibilities
    [Your Name] (hereinafter “trustee”) shall serve as trustee and has sole and absolute discretion, pursuant to the laws of the State of Maryland and the United States of America.

    B. Terminology
    The term "trustee" includes successor trustees or alternate successor trustees serving as trustee of this trust. The singular "trustee" also includes the plural where applicable.

    C. Successor Trustee
    Each successor trustee has full, independent and absolute discretion in acting for and representing the trust.

    Upon the death or incapacity of [Your Name], the trustee shall be my wife [Spouse Name].

    If [Spouse Name] is unable or unwilling to serve as successor trustee, my children [Child’s Name] and [Child’s Name] shall serve as co-trustees.

    In the event [Child’s Name] or [Child’s Name], are not 21 years of age, [Custodian/Alternate Trustee] shall serve as trustee.
    In the event of death or incapacity of both [Your Name] and [Spouse Name], my daughter, [Child’s Name], shall become the sole trustee upon reaching the age of twenty-one (21).

    Upon reaching the age of twenty-one (21) [Child’s Name], both [Child’s Name] and [Child’s Name] shall serve as co-trustees.

    D. Resignation of Trustee
    Any trustee in office may resign at any time by signing a notice of resignation, which shall be effective when delivered to the person whom is named as a successor trustee or appointed by the trustee under § II C.

    E. Power to Appoint Successor Trustee
    If no one named in this Declaration of Trust as a successor trustee or alternate successor trustee is willing or able to serve as trustee, the last acting trustee may appoint a successor trustee. The appointment must be made in writing, signed by the trustee and notarized.

    F. Bond
    No bond shall be required for any trustee named in this Declaration of Trust.
    G. Compensation
    No trustee shall receive any compensation for serving as trustee.

    H. Liability of Trustee
    With respect to the exercise or non-exercise of discretionary powers granted by this Declaration of Trust, the trustee shall not be liable for actions taken in good faith. Such actions shall be binding on all persons interested in the trust property.

    III Trustee's Management Powers and Duties
    A. Powers Under State Law
    The trustee shall have all authority and powers allowed or conferred on a trustee under Maryland law, subject to the trustee's fiduciary duty to the grantors and the beneficiaries.
    B. Specified Powers

    The trustee's powers are discretionary. They include, but are not limited to:

    1. The power to sell trust property, to borrow money and to encumber trust property, including trust real estate, by mortgage, deed of trust or other method.

    2. The power to manage trust real estate as if the trustee were the absolute owner of it, including the power to lease (even if the lease term may extend beyond the period of any trust) or grant options to lease the property, to make repairs or alterations and to insure against loss.

    3. The power to sell or grant options for the sale or exchange of any trust property, including stocks, bonds, debentures and any other form of security or security account, at public or private sale for cash or on credit.

    4. The power to invest trust property in every kind of property and every kind of investment, including but not limited to bonds, debentures, notes, mortgages, stock options, futures and stocks, but expressly excludes buying on margin.

    5. The power to receive additional property from any source and add it to any trust created by this Declaration of Trust.

    6. The power to employ and pay reasonable fees to accountants, lawyers or investment experts for information or advice relating to the trust.

    7. The power to deposit and hold trust funds in both interest-bearing and non-interest bearing accounts.

    8. The power to deposit funds in bank or other accounts, insured by the FDIC.

    9. The power to enter into electronic fund transfers or safe deposit arrangements with financial institutions.

    10. The power to institute or defend legal actions concerning this trust or the grantor's affairs.

    11. The power to execute any documents necessary to administer any trust created by this Declaration of Trust.

    12. The power to diversify investments, including authority to decide that some or all of the trust property need not produce income.
    C. Incapacity of Grantor

    1. If the grantor becomes physically or mentally incapacitated, whether or not a court has declared the grantor incompetent or in need of a conservator or guardian, the successor trustee named in § II C shall be trustee.

    D. Method of Determination

    1. The determination of the grantor's physical capacity to manage this trust shall be made by no less than two (2) licensed physicians if a successor trustee requests their opinion.

    2. The determination of the grantor's psychological capacity this trust shall be made by no less than two (2) licensed psychiatrists if a successor trustee requests their opinion.

    3. In that event, the trustee shall manage the trust property and shall use any amount of trust income or trust property necessary for the grantor's proper health care, support, maintenance, comfort and welfare, in accordance with the grantor's accustomed manner of living.

    4. Any income not spent for the benefit of the grantor shall be accumulated and added to the trust property. Income shall be paid to the grantor at least annually.

    5. Income accruing in or paid to trust accounts shall be deemed to have been paid to the grantor.
    6. The successor trustee shall manage the trust until the grantor is again able to manage his affairs. The determination of the grantor's capacity to again manage this trust shall be made in the manner specified just above.

    E. Death of a Grantor
    1. When the grantor dies, this trust shall become irrevocable. It may not be amended or altered except as provided for by this Declaration of Trust. It may be terminated only by the distributions authorized by this Declaration of Trust.

    F. Beneficiaries
    1. Upon death of the grantor, the trustee shall distribute the trust property as follows:

    2. All interest shall pass to [Spouse Name].

    3. In the event that [Spouse Name] is incapacitated or deceased, [Child’s Name] and [Child’s Name], shall divide all trust property per stirpes.

    4. All distributions are subject to any provision in this Declaration of Trust that creates a child's subtrust or a custodianship under the Uniform Transfers to Minors Act.

    5. A beneficiary must survive the grantor for 7 days to receive property under this Declaration of Trust. All personal and real property left through this trust shall pass subject to any encumbrances or liens placed on the property as security for the repayment of a loan or debt.

    IV. Custodianships Under the Uniform Transfers to Minors Act
    Any property to which any minor beneficiary is entitled, shall be held by a custodian under the Maryland Uniform Transfers to Minors Act.

    The custodial chain shall be the same as the chain of Trustees in § II C
    (Successor Trustee).

    V. Grantor's Right to Homestead Tax Exemption
    If the grantor's principal residence is held in trust, the grantor has the right to possess and occupy it for life, rent-free and without charge except for taxes, insurance, maintenance and related costs and expenses. This right is intended to give the grantor a beneficial interest in the property and to ensure that the grantor does not lose eligibility for a state homestead tax exemption for which he otherwise qualifies.

    VI. Severability of Clauses
    If any provision of this Declaration of Trust is ruled unenforceable, the remaining provisions shall have their full force and effect.

    Certification of Grantor
    I certify that I have read this Declaration of Trust and that it correctly states the terms and conditions under which the trust property is to be held, managed and disposed of by the trustee, and I approve the Declaration of Trust.

    _____________________________________Dated: ______________
    Your name, Grantor and Trustee



    CERTIFICATE OF ACKNOWLEDGMENT OF NOTARY PUBLIC

    (State of Maryland)
    County of Baltimore)
    On ___________________________, _______________________ before me, _____________________, a notary public in and for said state, personally appeared [Your Name], proved on the basis of satisfactory evidence (drivers License and Social Security Administration Identification) to be the person whose name is subscribed to the within instrument, and acknowledged to me that he executed the same in his authorized capacity, and that by his signature on the instrument the person, or the entity upon behalf of which the person acted, executed the instrument.

    WITNESS my hand and official seal.

    Notary Public for the State of Maryland







    My commission expires:


    ____/___/______





    [Your Name] Revocable Living Trust

    SCHEDULE A

    Assignment of Property

    I, [Your Name], as Grantor of the [Your Name] Revocable Living Trust, dated ____/____/______, hereby assign and transfer all of my rights, title and interest in the following property:

    1. NFA Item Description (TAC 65 Silencer/Suppressor) & Serial # XXXX



    To [Your Name], as trustee of the Name [Your Name] Revocable Living Trust

    dated ____/____/2009,

    Executed at ____|____|____, on ____/____/2009.



    ___________________________________________
    [Your Name], Grantor and Trustee






    Copies in MS Word available - email me.
     

    Boondock Saint

    Ultimate Member
    Dec 11, 2008
    24,365
    White Marsh
    "We were just outside of Barstow when the drugs began to kick in..."

    A completely irrelevant response, but I love your avatar. The document looks solid to me, though. Thanks for posting this.
     

    JeepDriver

    Self confessed gun snob
    Aug 28, 2006
    5,193
    White Marsh
    Looks good.

    I got your email, sorry I haven't responded yet.

    You'll need the Decleration & Certification of Trust as well as the Schedule of Property. Make copies of all of it and send in the copies. ATF will not return the Trust documents to you with the approved Form 4.

    I'll be at hte range tomorrow if you want to stop by and I'll get it all sorted out for you and ready to got to the ATF.
     

    Maryland_Shooter

    Banned
    BANNED!!!
    Feb 8, 2008
    917
    Glen Arm
    Looks good.

    I got your email, sorry I haven't responded yet.

    You'll need the Decleration & Certification of Trust as well as the Schedule of Property. Make copies of all of it and send in the copies. ATF will not return the Trust documents to you with the approved Form 4.

    I'll be at hte range tomorrow if you want to stop by and I'll get it all sorted out for you and ready to got to the ATF.

    I am hitting the gun show at 9:30 and then will stop by to try out the pistol. I'll have to put on the adapter.

    I have everything copied, notarized and filled out. Just give it the once over. I should be GTG.

    I'll see you there.

    I'll be wearing a LaRue Tactical hat.

    Thanks!
     

    Maryland_Shooter

    Banned
    BANNED!!!
    Feb 8, 2008
    917
    Glen Arm
    From a Trust Blog from a lawyer

    1. When must a trustee record a new asset on the Assignment of Property or Schedule A? A trustee must record any and all firearms that are transferred to the trust on the day that they are transferred. Since the firearm is not “transferred” until the BATFE approves the transfer, upon receipt of the approved Form 1 or Form 4, the trustee should immediately add the newly transferred firearm to the Assignment of Property or Schedule A and include the serial number of the weapon.

    Again, IMO - the ATF is not really up to par on processing these Trust related documents.

    Chad says put it on, the article says leave it off.

    Common sense (not very useful dealing with gun laws) tells me the latter should be the case. It's not my property to transfer until after the ATF approves the transfer to me as an individual, so I can then transfer my property to the Trust; consequently, it should be added to schedule A after the receipt of the approved Form 4 and tax stamp.

    http://blog.princelaw.com/2009/1/21/recordkeeping-and-identification-of-trust-property-in-a-gun-nfa-trust
     

    Calengor

    wishes he were spike
    Apr 13, 2009
    2,158
    Frederick, MD
    Maryland Shooter, it looks like the .doc link is no longer available. Do you think you could repost the .doc or e-mail it (if so PM me for my email address)?

    Also, anyone else use this template successfully?
     

    md_rick_o

    Ultimate Member
    MDS Supporter
    Sep 30, 2008
    5,112
    Severn Md.
    Since this popped back up i'll ask my questions too:

    1. How do you actually start this for the first item. I mean do you enact a trust then apply for the item (ie suppressor). How can you apply for the tax stamp using the trust if there isn't one right? But do you start the trust as empty (nothing in schedule A) i'm going in a circle with this question and probably missed a simple answer.

    2. Using the trust basically lets you bypass the fingerprints, but is there anything else that it really does for you?

    3. Is there some kind of background, NICS, or other investigation conducted on the trustees?

    Sorry if these questions have already been answered somewhere but when this thread popped back up i just don't understand how to get it started.
     

    boatbod

    Ultimate Member
    Nov 30, 2007
    3,827
    Talbot Co
    2. Using the trust basically lets you bypass the fingerprints, but is there anything else that it really does for you?

    It's my understanding that you can designate additional trustees who would then have the ability to possess the assigned trust items (e.g. NFA goodies) in your absence. Whilst you might argue that nobody else would be using the item, it is possible for a domestic partner to be charged with constructive possession if they physically have access to an NFA device (i.e. your spouse knows the combination to your safe).

    Related to this, is my current lack of clarity whether an individual named as a beneficiary (e.g. my wife) explicitly also needs to be named as a trustee in order to be covered under these circumstances? I suppose the simple answer would be to set up a joint trust, or pay a visit to an estate planning lawyer, but I'd like to avoid both of those if possible.
     

    snavematt

    say what?
    May 19, 2009
    5,075
    Stafford, VA as of 5/7/13
    Since this popped back up i'll ask my questions too:

    1. How do you actually start this for the first item. I mean do you enact a trust then apply for the item (ie suppressor). How can you apply for the tax stamp using the trust if there isn't one right? But do you start the trust as empty (nothing in schedule A) i'm going in a circle with this question and probably missed a simple answer.

    2. Using the trust basically lets you bypass the fingerprints, but is there anything else that it really does for you?

    3. Is there some kind of background, NICS, or other investigation conducted on the trustees?

    Sorry if these questions have already been answered somewhere but when this thread popped back up i just don't understand how to get it started.

    1. You have to have the serial number of the surpressor to put into the trust, when you apply for the tax stamp you send the trust. For example, Im waiting for my surpressor to get to GC, once there, I enter the serial number into my trust, get it notorized, go to GC do the rest of the paperwork, GC holds the surpressor till its approved, then I get it transferred to me
     

    md_rick_o

    Ultimate Member
    MDS Supporter
    Sep 30, 2008
    5,112
    Severn Md.
    1. You have to have the serial number of the surpressor to put into the trust, when you apply for the tax stamp you send the trust. For example, Im waiting for my surpressor to get to GC, once there, I enter the serial number into my trust, get it notorized, go to GC do the rest of the paperwork, GC holds the surpressor till its approved, then I get it transferred to me

    Aha, thanks i was going round in circles with that and just got fed up.
     

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