Originally Posted by Maine04657
Again your trying to use logic. The links you give do not mention a NFA trust. ALL and I mean EVERY legal NFA item must be registered and sale approved by the ATF. If we where to apply your logic then person gets a NFA trust buys 10 NFA items. That person dies we just add a new name to the NFA trust before death then he/ she gets the items as the trust in your mind is still valid. So this would mean there would be way of knowing who had the items. Does this sound like something the ATF is going to allow? Following your thinking one could keep a NFA trust going forever by just changing the name at the top. Never doing a transfer of any type? Or what if they SELL the NFA trust. You can sell a irrevocable or revocable trust to another person. If this was allowed with a NFA trust the ATF would loose track of every NFA item and every dealer would place every item in a trust as doing so would negate the sale all further tax stamps on already existing NFA items especially big ticket MG's. You feel free to try any of this let me know how far you get.
There is no such thing as an "NFA trust"! It's just a trust
that holds happens NFA items! It's not a magical, different type of legal instrument. You don't need a separate trust to hold NFA items if you're already the trustee for your own trust.
The part of a trust that can't be changed is the grantor/settlor, the person who funds it initially. When that person dies, the trust become irrevocable (if not already) and the stuff in the trust does whatever the trust says, often moving on to the named beneficiary (in the case of NFA items, on a tax-free Form 4).
But the person who is responsible for holding the property of the trust, the trustee, can
And a trust can
be sold, sort of
. The beneficiary has a legal stake in the trust that can be sold. But the beneficiary isn't the one who possess the items.
A trustee's position can't be sold by the trustee. It could, I guess, be sold by grantor/settlor, but only an idiot would buy it. The grantor could change the trustee again ten minutes later and keep all the money; the buyer would have no recourse.
I'm asking again, what evidence do you have that trusts holding NFA items act differently than all other legal trusts?
(Note to all Readers: I am not an attorney in any state, and I'm definitely not your attorney. Don't take anything I say as legal or other professional advice.)