Re: Adding/Removing Trustees
<div class="ubbcode-block"><div class="ubbcode-header">Originally Posted By: Strykervet</div><div class="ubbcode-body"><div class="ubbcode-block"><div class="ubbcode-header">Originally Posted By: Force_Multiplier</div><div class="ubbcode-body"><div class="ubbcode-block"><div class="ubbcode-header">Originally Posted By: 45ACP_Marine</div><div class="ubbcode-body">What if you want to sell an item and you sell the trust along with it. Does it have to go through the process again or how does that work?</div></div>
selling a trust isn't a good idea... trusts were never intended to be sold... now an LLC on the other hand?</div></div>
The trust belongs to you. The items belong to the trust. You don't sell a trust; the way I understand it, say you die, is that the beneficiary of your trust has to get a trust of his own and have the items transferred into it. You can sell items out of the trust, but you keep the trust.
I'm in the process of looking into having one of my infant nieces made an executor, but she lives in NE and isn't yet 1yo. As an executor, if anything happened to us, she could take possession of the trust in its entirety with no hassle at all. Then all she'd have to do is change address and go back wherever she'll be living then, and presto, we get to keep it all in the family with no BS. I plan on doing this as a protection to any grandfather clause they may come up with, now or later. I also plan on adding my semi's and even mags (I'll SN each one) to the other schedule, hopefully that way there won't be any taxes to transfer them in later if a ban happens --just a quick schedule change.
LLC can range from a bad idea to an extremely horrible idea. It has to be maintained, pay fees yearly, depends on state so all are different. Just a pain in the ass. And if you forget to pay or are held up somewhere, you may find yourself in violation of the NFA. You or your LLC can also be sued or have liens put on your business (for matters that have nothing to do with firearms) and end up losing it. The trust is a one time deal and done, no fees no nothing, and it can't be raided, that is the point of it. You'd be stupid to get an LLC vs. a trust unless your LLC is actually a running business that uses NFA items as tools of the trade. My .02 anyway, I looked into LLC before I got my trust, and the trust is the way to go.</div></div>
if you'll read along... the OP asked about adding and removing trustees selling the trust...
about once a month we get asked about this, as a way to avoid a "transfer" of and NFA item.. "Mr ATF agent, I didn't sell the NFA item, I sold the trust that owned it"...
that's not a great idea... while it MAY be perfectly legal in some states (dunno, not an attorney), it will be extremely frowned upon by the ATF...
IF, if you want an entity that CAN legally transfer a NFA item by selling the entity, a trust is NOT the way to go... a LLC, Corp., etc on the other hand can be and is commonly sold along w/ any holdings it may have.
