Does It Make Sense to Consolidate SilencerShop Single Shot Trusts After January 1 Because the Tax Stamp Will Be Free?

If you own multiple SilencerShop single shot trusts, you may be thinking about consolidating your multiple single shot trusts into one trust after January 1st and if that makes financial sense. Specifically with the potential for a free tax stamp. It is worth noting at the time of writing this blog post, that there is no confirmed timeline of if and when the making of or purchasing an NFA will be $0.

Why Consolidate Trusts?

Consolidating multiple trusts into a single trust can offer several benefits and advantages.

1. Simplifying Administrative Duties - Managing one gun trust is easier to manage versus two, three or multiple single shot trusts especially if you have different parties involved with each trust.
2. Lower Costs - Fewer trusts or a consolidated trust that contains all of the NFA firearms can lead to fewer costs to setup the trusts, as well as maintaining the trusts in the future.
3. Streamlined Transfers - With a consolidated gun trust, adding a new co-trustee, changing beneficiaries, or transferring firearms into the gun trust is a more straightforward process.
4. Better Oversight - Keeping all of the NFA firearms and /or non-NFA firearms (title 1 firearms) under one gun trust can simplify the amount of paperwork to manage, recordkeeping and compliance.
   

Why Timing After January 1 Matters

The big motivator for gun trust and sinle shot trust owners is the potential of a free tax stamp transfer between legal entities.  

• Avoiding the $200 Tax Stamp Cost - The ATF requires a $200 tax stamp to make NFA firearms or transfer NFA firearms between legal entities (excluding AOW's which are a $5 transfer). If the ATF policy is changed for the making and transferring of NFA firearms and allows for a free tax stamp after January 1st, it would be financially beneficial to consolidate the single shot trusts into one gun trust.

Consolidating SilencerShop single shot trusts after January 1 can save money if the free tax stamp is available. It also simplifies the managing of the gun trusts, recording keeping and settlor oversight of the gun trusts and firearms. One drawback could be the timing of consolidating gun trusts. It is worth mentioning that with the free tax stamp the ATF would be loosing potentially $145,000,000 dollars per year in funding, at the same time increasing the amount of tax stamp applications from consolidation of trusts, individuals moving firearms into gun trusts, new gun owners taking advantage of the free tax stamps, etc.