[coolhand]

Hi, I've incoming HK MP5 (converted) to my Class 3 dealer within 4 weeks.
Currently I've LLC but someone told me that Trust route is better choice compare to LLC route.
Does anyone know how to setup Trust in state of Georgia and the pros & cons of Trust compare to LLC?
thanks

 

[straightgrain]

Since it is impossible to know the details specific to your personal situation and that it wouldn't necessarily be prudent to discuss them in a public venue, I recommend that you consult with a local professional experienced in such matters. While you may collect a lot of advice off of the net for such an endeavor, not all of that advice will be applicable to you and might wind up causing you more heartache than expected.

Spend a few bucks to get it done right.

 

[Glock35]

I'm in the same situation. MP5/40 under my LLC, but I'd like to move it to my trust. I used Quicken Willmaker. Eventually I'll see if I can get an opinion from a lawyer I know....it's rubbish paying another tax to transfer to the Trust from LLC though.

Edit: It is wise, that if you have any doubt, to consult a lawyer and even document the conversation/what was the 'verdict'. CYA - Cover Your Axx

 

[coolhand]

Thanks for your advice.
I’m mainly concerned about yearly LLC due... what if I missed the annual due and the state resolves my LLC? what happens to my registered machine guns & SBR now?
I thought once you created the trust then you don’t have to worry about the annual dues or other related problem and I figured that Trust is better choice compare to LLC.
Any thoughts?

P.S. should I buy that Quicken living will for $35 or hire local attorney (really don't want to)?

Since it is impossible to know the details specific to your personal situation and that it wouldn't necessarily be prudent to discuss them in a public venue, I recommend that you consult with a local professional experienced in such matters. While you may collect a lot of advice off of the net for such an endeavor, not all of that advice will be applicable to you and might wind up causing you more heartache than expected.

Spend a few bucks to get it done right.

 

[coolhand]

Thanks Glock35, I've LLC already but I thought Trust would be a better choice....

I'm in the same situation. MP5/40 under my LLC, but I'd like to move it to my trust. I used Quicken Willmaker. Eventually I'll see if I can get an opinion from a lawyer I know....it's rubbish paying another tax to transfer to the Trust from LLC though.

 

[Glock35]

what if I missed the annual due and the state resolves my LLC?

You should have an email system setup or be receiving notices in the mail. Meaning if your late you won't be months late.
Therefore, from what I've seen in Colorado, your LLC will go from "Good Standing" to "Waiting on Documents" or something to that effect. (*Note: the certificate of Good Standing required when doing the NFA paperwork)

You could do Willmaker & have an attorney look it over later, that's one option.

In short I would have an attorney look it over though if you plan on keeping your NFA goods (read high dollar) in the trust over multiple lifetimes.

 

[straightgrain]

My advice is to have a lawyer vet the thing. It's not that I am necessarily pro lawyer. That said, there are several things at play:

• NFA items can be very expensive
• The penalties for illegal transfer can be very severe
• Messing this up means that you could wind up losing your NFA items, and/or paying a hefty fine, and/or going to jail

I would want to have some recourse and some expertise with so much at stake. But suit yourself... (pun possibly intended).

 

[Bama Tactical]

I am in the process of trying to set up a trust myself (within the state of AL). My regular attorney told me that he could technically do it but he is trying to find another attorney in AL that has experience with trusts for NFA items. I know I could do the willmaker thing but spending the money to have it done right is worth it to me.

 

[chamoore]

Has anyone else been told by their local Class 3 dealer that they will not be doing any LLC transfers in the future? I was trying to buy a HK51 for $15k a couple months ago and was told if they haven't done with me before, they would not start now. They seem to think transfers to LLC will be stopped some day. Am I being told right or they just not wanting to deal with me?

 

[medic103]

PM me your email and I'll send you a copy of the trust I use. I've got 9 NFA items on it and never had a problem.


D

 

[oldironcollector]

Ok, dumb question. What is a "trust" for? I thought it was essentially the same procedure for a Form 1 as obtaining a C3 weapon. Did I miss something? I am considering a C3 and would love to be informed.

Thanks
D.

 

[AviatorDave]

Thanks for your advice.
I’m mainly concerned about yearly LLC due... what if I missed the annual due and the state resolves my LLC? what happens to my registered machine guns & SBR now?
I thought once you created the trust then you don’t have to worry about the annual dues or other related problem and I figured that Trust is better choice compare to LLC.
Any thoughts?

P.S. should I buy that Quicken living will for $35 or hire local attorney (really don't want to)?

Does your state have yearly fees for a corp? In Texas, if you have no income, you have no taxes due. The only annual requirements are to fill out the tax form once a year. It's only about 1/3 of a fill-in-the-blanks page and takes less than 5 minutes. The other thing you might want to ask an attorney about (preferrably one that is familiar with NFA transfers) is if you have to live in the same state where you are incorporated. Nevada and Delaware are very friendly corp states when it comes to taxes.

 

[Glock35]

Does your state have yearly fees for a corp? taxes.

In Colorado you have to file annual reports. Mandatory. Otherwise your status is no longer in "Good Standing". I think that's what he was referring to.


If you check legalzoom.com or in Colorado you can check on the "Secretary of State" website for info (i.e. required docs, etc).

 

[rtr]

Can anyone refer me to a lawyer that has any knowlege of the NFA and trusts/corporations? I have been unable to find one, thanks.

 

[raymond-]

take a look at the article in Feb 2008 Small Arms Review (try Barnes/Noble) which has nice overview of some of the pros/cons of going LLC, trust, corp. author is Mark Barnes, who specializes in Title 2 laws.

 

[UncleBilly]

Ok, dumb question. What is a "trust" for?

In a nut shell, a trust is a estate planning tool, in other words, assets you want to go to a benificinary after your death, goes into that trust, and it avoids probate. There is more advantages in doing a trust then doing a will. For one, a trust, unlike a will, can't be contested by others, if you have vultures in your family this is the way to go. Also there are some tax advantages to it as well.

When you put a NFA weapon in a trust, it's the trust that owns the weapon, not you. Same as you make a LLC, the weapon belongs to the LLC, not you. Only in a trust, it's a one time deal to set and that is it, you don't have to keep it up like a LLC, with keeping minutes, or paying to keep it "in good standing". The trust dissolves once you die, then the person who you left that NFA weapon to gets it. But that person can't be prohibited from owning a firearm, and he has to do the paperwork for the transfer, the transfer is tax free

Folks go the trust route, because it does not require a CLEO signature. Some folks hit a brick wall and can't get their CLEO to sign the form, even though there is no state or local law forbiddening them to own one.

With a trust, you don't need a CLEO signature, the photo, or fingerprints, you just mail the NFA branch the form 1, compliance form. and the trust along with the schedule A (list of assets) and 200 bucks

 

[oldironcollector]

Great! thanks for the info, I had heard it had something to do with the CLEO. I really had not thought about what happens when a C3 becomes an estate.

Thanks for clearing this up, Uncle Billy

D.

 

[AviatorDave]

Great! thanks for the info, I had heard it had something to do with the CLEO. I really had not thought about what happens when a C3 becomes an estate.

Thanks for clearing this up, Uncle Billy

D.

These guys have a lot of info about corp transfers:
http://www.westernfirearms.com/

I think its pretty much the same with a trust, except you can go to a financial planner to set it up.