Buying AR receiver with a Trust

jmaurath · Jul 5, 2016

This may be a dumb question but I've never done it so I want to verify.

I'm planning to buy an AR receiver, then turn it into an SBR. I have a trust for my other NFA items.

When I go to buy the semi receiver I have to buy it in the trusts name correct? Meaning I have to fill out the MD paperwork in the name of the trust correct? Otherwise if I buy it in my name I will need to transfer it to the trust later which will be a regulated transfer correct?

Just want a double check on this before I buy it.

Pmbspyder · Jul 5, 2016

No, you buy the receiver as an individual (like you normally would), then submit a form 1 to the ATF to build the firearm via your trust. As far as the ATF is concerned, you are creating a new firearm.

jmaurath · Jul 5, 2016

So, is this the correct logic for why I don't have to buy it in the Trust's name?

1. I purchase stripped AR receiver, this requires MD paperwork and wait period because it can be built into a pistol.
2. I build it into a AR rifle with Heavy Barrel >16" thereby making it a regular long arm
3. I transfer it to the trust as a regular long arm
4. the Trust then submits application to create SBR from long arm

Creation of SBR and transfer of long rifle does not need MD transfer paperwork so everybody is happy.

Is that about right?

Otherwise, how does the Trust come to possess the semi it uses as the host firearm that it uses to create the SBR? Since the trust is not creating the SBR from raw materials, wouldn't it have to possess the semi host firearm from which the SBR was created? If I personally own it and don't transfer it to the Trust, how is that not basically saying the trust stole the semi host firearm which it then used to create an SBR.

Sticky · Jul 5, 2016

jmaurath said:
So, is this the correct logic for why I don't have to buy it in the Trust's name?

1. I purchase stripped AR receiver, this requires MD paperwork and wait period because it can be built into a pistol.
2. I build it into a AR rifle with Heavy Barrel >16" thereby making it a regular long arm
3. I transfer it to the trust as a regular long arm
4. the Trust then submits application to create SBR from long arm

Creation of SBR and transfer of long rifle does not need MD transfer paperwork so everybody is happy.

Is that about right?

Otherwise, how does the Trust come to possess the semi it uses as the host firearm that it uses to create the SBR? Since the trust is not creating the SBR from raw materials, wouldn't it have to possess the semi host firearm from which the SBR was created? If I personally own it and don't transfer it to the Trust, how is that not basically saying the trust stole the semi host firearm which it then used to create an SBR.

Not sure about your trust, but mine has an assignment page that I would use to transfer either the stripped lower, or the completed rifle into my trust, then I would send a copy of that item on the assignment form along with my trust docs and form 1 for the SBR, just as I did for some form 1 Suppressors, showing that I put some $$ into the trust to 'fund it' properly.

Pinecone · Jul 7, 2016

1. Buy lower as an individual.
2. Submit Form 1 as a trust.
3. Upon receipt of stamped Form 1, build SBR.

If you want to do something with the lower while waiting for the Form 1 to be approved, build it into a pistol or HBAR. With a pistol, all you have to do when you get your Form 1, is replace the buffer tube and install stock.

Buying AR receiver with a Trust

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