Can Friends and Family Buy NFA Firearms with your NFA Gun Trust?
With your NFA Gun Trust the creator is referred to as the Settlor of the NFA Gun Trust. The Settlor is in charge of the NFA Gun Trust. However, many NFA Gun Trusts may contain other members to the NFA Gun Trust and known as Co-Trustee's. Although the co-trustee's in your trust may have a stake in the NFA Gun Trust, the settlor is the owner of trust and can execute any purchases or selling of the items that are within the NFA Gun Trust. This makes the co-trustee in the NFA Gun Trust essentially a authorized user of the NFA Gun Trust, who can possess, use, transport and store the items that the NFA Gun Trust owns.
Co-Trustee's can easily be removed or added to your NFA Gun Trust by making and executing an amendment to your NFA Gun Trust. The amendment to the NFA Gun Trust is a notarized document that allows the new Co-Trustee to use the NFA Gun Trust. The question then becomes, can your friends and family buy NFA Firearms with your NFA Gun Trust. The answer is yes, they can. How can they do that? They need to be added to your NFA Gun Trust with an amendment to the trust.
This is quite common to have a group of friends or family create a NFA Gun Trust together. Before you do that though you need to decide if that is the best idea. Because if you are a Co-Trustee that is being added to an existing NFA Gun Trust and you make purchases to that NFA Gun Trust, you however can posses, use, transport and store that item. But the NFA Firearm technically is owned by the trust, who the Settlor of the trust is in charge of. The Settlor could make an amendment to the NFA Gun Trust that disallows you to posses, use, transport and store that item that you purchased with the NFA Gun Trust. We cannot recommend or give advice to create a NFA Gun Trust for yourself only, versus creating a NFA Gun Trust for your family or group of friends. Every family and group of friends has a different dynamic. But we will say this that having a shared trust can be disadvantageous for any co-trustee's of that trust, as they can be removed from the NFA Gun Trust very easily. Leaving the NFA Firearms that they paid for in control of the settlor.
A better way to have a NFA Gun Trust with friends and family is to have the person purchasing the NFA Firearms be the settlor to the NFA Gun Trust. If you create the NFA Gun Trust and you are the settlor of the trust, it does mean that you can add friends or family members to your trust. They can use the NFA Firearms that you have purchased. If they are offering to use that trust to purchase NFA Firearms for themselves, it would be worth having them create a NFA Gun Trust themselves and adding you as a co-trustee to their trust. This keeps the owner and purchaser of the NFA Firearms in control of the NFA Firearms that they purchased, while allowing your friends and family members of your choice to use your NFA Firearms. This is the preferred way to have a NFA Gun Trust among friends and family.
With our $59.95 NFA Gun Trusts we make it very easy and cost effective to help you create a trust for yourself and a NFA Gun Trust for your friends and/or family.
Information located within this article is current as of August, 2018. Information located within this article is an original guide created by National Gun Trusts and not to be cited or used without the written permission of National Gun Trusts.