Are NFA trust questions accepted here?

[Kernal F.]

I have a NON NFA firearm on order and have not filled out paperwork yet. I DO want this firearm in a revocable trust. My reasoning is this: My son won't turn 21 until after 01 Oct. My hope is that he can possess this soon to be banned firearm once he turns 21. I am a little unclear of the procedure.

When the firearm arrives, do I fill out paperwork and purchase in my name and then later list on the trust? In this scenario does the firearm actually transfer out of my name and into the trusts?

OR

Do I need the trust in place first so the trust can take ownership? Can/does the trust technically own a firearm?

Another thing: will sb281 view a trust like a person? Will the trust have had to possessed a banned weapon BEFORE 01 Oct. in order to possess after? This is probably only relevant IF the trust would be listed as the actual owner.

Thanks boys

 

[L0gic]

I think Firearm trust has it own section: http://www.mdshooters.com/forumdisplay.php?f=105

 

[swinokur]

NFA Trusts and revocable trusts are not the same. Plenty of info out there on the pros and cons of each.

 

[spacer75]

I thought that SB281 allows for the transfer of ownership of banned firearms through inheritance, specifically Section 4-302(5)?

(Unless you're concerned that you'll die before he turns 21, then yeah, you best consult a lawyer.)

 

[erwos]

I thought that SB281 allows for the transfer of ownership of banned firearms through inheritance, specifically Section 4-302(5)?

(Unless you're concerned that you'll die before he turns 21, then yeah, you best consult a lawyer.)

Correct. In fact, I think it even lets you inherit the mags... the state is generous to the dead, I suppose. :-P

 

[JustCuz]

I am not a lawyer, but I think there is a problem with putting a regulated, non-NFA firearm into a trust. When you create a trust, property is transferred into it; the trust becomes the owner. Maryland does not allow regulated firearms to be owned by entities, only individuals. So, without the ability to transfer a regulated firearm into a trust, your only option is to bequeath the firearm through a will. The new law, as I understand it, does allow that type of inheritance, but I would believe that the regulated (and then-banned) firearm(s) would then have to be transferred through the MSP under the Annotated Code of Maryland Public Safety Article, Title 5, Subtitle 1 which allows for inheritance "... if the heir completes an application for the purchase or transfer of a regulated firearm and forwards it to the Secretary."

 

[USAFRavenR6]

I am not a lawyer, but I think there is a problem with putting a regulated, non-NFA firearm into a trust. When you create a trust, property is transferred into it; the trust becomes the owner. Maryland does not allow regulated firearms to be owned by entities, only individuals. So, without the ability to transfer a regulated firearm into a trust, your only option is to bequeath the firearm through a will. The new law, as I understand it, does allow that type of inheritance, but I would believe that the regulated (and then-banned) firearm(s) would then have to be transferred through the MSP under the Annotated Code of Maryland Public Safety Article, Title 5, Subtitle 1 which allows for inheritance "... if the heir completes an application for the purchase or transfer of a regulated firearm and forwards it to the Secretary."

I believe you are incorrect in your statement. I just created a trust today in order to build a sbr. I placed the lower in the trust initially to then apply for the tax stamp through the trust. From what I understand, trusts are its own entitie, with me as the grantor. You can put all your guns in the trust and there will not any tax when you die for them to keep them

 

[JustCuz]

When researching for my own trust, I concluded that NFA items are fine since the ATF allows entities on the Form 1, but placing Maryland Regulated Firearms in trusts are legally problematic for the reasons I stated.

Here is one of the posts on which I based that conclusion:

http://www.mdshooters.com/showthread.php?t=111091

Concerning regulated firearms in Maryland, while the firearm is technically personal property, Maryland creates title to the property by designating certain firearms as "regulated" and, therefore, registerable to an individual. The Maryland State Police does not recognize legal entities of any sort as legitimate owners of firearms. To transfer any such item to another person in the State requires filing of paperwork with the MSP. If one cannot transfer a regulated firearm to a legal entity - your trust - and instead must transfer the firearm to the trustee or trustees as the case may be, but multiple person ownership of a regulated firearm is impossible under Maryland law; how can one then reliably transfer the property to the trust? There are a great many facets to this problem but, for the sake of brevity at this point, let us just say that transferring quasi-titled property - in this case, firearms - to a trust for management clouds the title to such a degree that I would not want to be the attorney forced to sort out ownership issues when a problem concerning passage and ownership of those firearms arises. Needless to say, the problems associated with transferring non-NFA firearms to your trust far outweigh any sort of benefit in having trustees manage the non-NFA firearms under a trust agreement. Ultimately, it is better that you simply pay to have an attorney prepare a will that specifically deals with the passage of unregulated and regulated firearms in the state of Maryland.

 

[6-Pack]

When researching for my own trust, I concluded that NFA items are fine since the ATF allows entities on the Form 1, but placing Maryland Regulated Firearms in trusts are legally problematic for the reasons I stated.

Here is one of the posts on which I based that conclusion:

http://www.mdshooters.com/showthread.php?t=111091

As an estate planning lawyer (I don't really get involved with NFA trusts), you are correct. Entities can own Class III firearms as per the ATF. Maryland doesn't allow non-individuals to own firearms except for Class III stuff. Mags and accessories can be placed into a trust for future transfers.

But putting accessories into a trust or will wouldn't make sense: why create a paper trail? Sometimes the less said the better.