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Old January 3rd, 2009, 02:45 PM #21
Kharn Kharn is offline
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I went individual for mine, I think trusts and other legal entities (corps, etc) are an easy way to land yourself in trouble, especially if you move, while an individual just takes a little extra time but then you're set for life.
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Old January 3rd, 2009, 03:21 PM #22
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I did my last one as a trust using Quicken Willmaker. It's simpler than an individual transfer. I never had any problems getting the CLEO signoff, but the trust saves time and the bother of photos & fingerprints.
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Old January 3rd, 2009, 05:16 PM #23
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The other benefit of using a trust is that any of the trustees can use the item, unlike when an individual owns an NFA item.
Damn, didn't know that.
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Old January 3rd, 2009, 05:19 PM #24
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So basically with a trust about four or five people can go in on a class III and all of them can use the firearm equally?
That sounds like a good plan for the expensive full auto.
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Old January 3rd, 2009, 11:41 PM #25
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But who would you trust to have access to your $15k M16 and also expect them to shoot it without you being present?
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Old January 4th, 2009, 08:38 AM #26
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Hello all...

I know the thread is "trust or individual", but can I ask about a Corporation?

I own an S-Corp in Maryland for the last 16 years; I am the sole share holder and
President. Can I have my company purchase a NFA item? What is involved?

Thanks in advance.
Adam
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Old January 4th, 2009, 09:04 AM #27
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Don't know, but welcome to MDShooters.
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Old January 4th, 2009, 09:19 AM #28
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Quote:
Originally Posted by Kharn View Post
But who would you trust to have access to your $15k M16 and also expect them to shoot it without you being present?
Probably the same person you might trust to drive your $30k car when you're not around.
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Old January 4th, 2009, 08:21 PM #29
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Trust language - already being used in MD:

Declaration of Trust

Part 1. Trust Name
This revocable living trust shall be known as the Name of your trust Revocable Living Trust.

Part 2. Declaration of Trust
Your Name, called the grantor, declares that he has transferred and delivered to the trustee all his interest in the property described in Schedule A attached to this Declaration of Trust. All of that property is called the "trust property." The trustee hereby acknowledges receipt of the trust property and agrees to hold the trust property in trust, according to this Declaration of Trust.
The grantor may add property to the trust.

Part 3. Terminology
The term "this Declaration of Trust" includes any provisions added by valid amendment.

Part 4. 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 and signed by the grantor. Revocation may be in writing or any manner allowed by law.
B. Amendment or Revocation by Other Person
The power to revoke or amend this trust is personal to the grantor. A conservator, guardian or other person shall not exercise it on behalf of the grantor, unless the grantor specifically grants a power to revoke or amend this trust in a Durable Power of Attorney.

Part 5. Payments From Trust During Grantor's Lifetime
The trustee shall pay to or use for the benefit of the grantor as much of the net income and principal of the trust property as the grantor requests. Income shall be paid to the grantor at least annually. Income accruing in or paid to trust accounts shall be deemed to have been paid to the grantor.

Part 6. Trustees
A. Trustee
Your name shall be the trustee of this trust.
B. Trustee's Responsibilities
The trustee in office shall serve as trustee of all trusts created under this Declaration of Trust, including children's subtrusts.
C. Terminology
In this Declaration of Trust, the term "trustee" includes successor trustees or alternate successor trustees serving as trustee of this trust. The singular "trustee" also includes the plural.
D. Successor Trustee
Upon the death or incapacity of Your name, the trustee of this trust and of any children's subtrusts created by it shall be Name of secondary trustees. Each successor trustee has full and independent authority to act for and represent the trust. If Name of secondary trustees are unable or unwilling to serve as successor trustee, Name of successor trustees shall serve as trustee. Each of them has full and independent authority to act for and represent the trust.
E. Resignation of Trustee
Any trustee in office may resign at any time by signing a notice of resignation. The resignation shall be delivered to the person or institution who is either named in this Declaration of Trust, or appointed by the trustee under Section F of this Part, to next serve as the trustee.
F. 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 and may require the posting of a reasonable bond, to be paid for from the trust property. The appointment must be made in writing, signed by the trustee and notarized.
G. Bond
No bond shall be required for any trustee named in this Declaration of Trust.
H. Compensation
No trustee shall receive any compensation for serving as trustee, unless the trustee serves as a trustee of a child's subtrust created by this Declaration of Trust.
I. 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.

Part 7. 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 include, but are not limited to:
1. The power to sell trust property, and 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, and including 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, whether or not they are insured by the FDIC.
9. The power to enter into electronic fund transfers or safe deposit arrangements with financial institutions.
10. The power to continue any business of the grantor.
11. The power to institute or defend legal actions concerning this trust or the grantor's affairs.
12. The power to execute any documents necessary to administer any trust created by this Declaration of Trust.
13. The power to diversify investments, including authority to decide that some or all of the trust property need not produce income.

Part 8. Incapacity of Grantor
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 Part 6 shall be trustee.
The determination of the grantor's capacity to manage this trust shall be made by those of the people listed here who are reasonably available when the successor trustee (or any of them, if two or more are named to serve together) requests their opinion. These people are: Three people you trust that can rule if you are crazy or not. If a majority of them state, in writing, that in their opinion the grantor is no longer reasonably capable of serving as trustee, the successor trustee shall serve as trustee.
In that event, the trustee shall manage the trust property. The trustee 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. 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. Income accruing in or paid to trust accounts shall be deemed to have been paid to the grantor.
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.

Part 9. Death of a Grantor
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.
The trustee may pay out of trust property such amounts as necessary for payment of the grantor's debts, estate taxes and expenses of the grantor's last illness and funeral.

Part 10. Beneficiaries
At the death of the grantor, the trustee shall distribute the trust property as follows:
1. Person who gets your stuff when you dieshall be given all Your name interest in the trust property. If Person who gets your stuff when you die does not survive Your name, that property shall be given to Backup person who gets your stuff when you die.
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.
A beneficiary must survive the grantor for 120 hours to receive property under this Declaration of Trust. As used in this Declaration of Trust, to survive means to be alive or in existence as an organization.
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.
If property is left to two or more beneficiaries to share, they shall share it equally unless this Declaration of Trust provides otherwise. If any of them does not survive the grantor, the others shall take that beneficiary's share, to share equally, unless this Declaration of Trust provides otherwise.

Part 11. Custodianships Under the Uniform Transfers to Minors Act
1. Any property to which Name of person who gets yor stuff when you die (if under 21) becomes entitled under Part 10 of this Declaration of Trust shall be given to Custodian of trust for those under 21 (I used my wife), as custodian for Name of person who gets your stuff (if under 21) under the Maryland Uniform Transfers to Minors Act, until Name of person who gets your stuff (if under 21) reaches the age of 21. If Custodian of trust for those under 21 (I used my wife) is unable or ceases to serve as custodian, Backup custodian of trust for those under 21 shall serve as custodian.

Part 12. 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.

Part 13. Severability of Clauses
If any provision of this Declaration of Trust is ruled unenforceable, the remaining provisions shall stay in effect.



______________________________page break_______________________________________

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

_____________________________page break______________________________________



CERTIFICATE OF ACKNOWLEDGMENT OF NOTARY PUBLIC

State of Maryland )
) ss.
County of )
On ____________________, __________ before me, _____________________, a notary public in and for said state, personally appeared Your name, personally known to me (or proved on the basis of satisfactory evidence) 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
[NOTARIAL SEAL]My commission expires:

_____________________________page break____________________________________


SCHEDULE A

1. Stuff you put in the trust
2. Stuff you put in the trust

_____________________________page break_____________________________________


Assignment of Property

I, Your name, as grantor of the Name of the trust Revocable Living Trust dated ____________________, __________, hereby assign and transfer all of my rights, title and interest in the following property:
1. Stuff you put in the trust
2. Stuff you put in the trust
to Your name, as trustee of the Name of trust Revocable Living Trust dated ____________________, __________.

Executed at ____________________, _______________, on ____________________, __________.

___________________________________________
Your name, Grantor and Trustee
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Old January 5th, 2009, 09:16 PM #30
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Quote:
Originally Posted by Kharn View Post
But who would you trust to have access to your $15k M16 and also expect them to shoot it without you being present?
1) Remember that this is for ANYTHING NFA...thus not just the 15k full auto

2) Active Duty Military and others (like myself) end up having to travel. Without a trust, company, or other legal entity, any NFA weapons or items must be secured in a place where NO ONE can get them but you. Thus, if like me you have to be out of the country for a few months, not even your spouse or other immediate family members (let alone anyone else) can not even take possession or secure said NFA items/weapons while you are away if they are registered to you as an individual.

Granted I am not a lawyer, but that is how I understand the law.
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