My kids (between 12 and 18) are into shooting and have purchased a handful of suppressors over the years.  Long story but my oldest son has owned a company and employed his siblings for a handful of years - so they earn the money to buy their own goodies.

We have used my NFA trust to purchase their suppressors/stamps.  As of now, all of the kids are beneficiaries.  The plan has been to add them as trustees as they hit 18.  My worry is this - what happens if they have a falling out at some point in their lives and want to dissolve the trust?  Basically, I want to make sure that Kid 1 gets the suppressors that he has purchased and Kid 2 gets the suppressors that he purchased.  I don't want there to be an issue with one of the kids causing problems for the others.

What's the best way to do this?  Should I have each kid setup w/ their own NFA trust?  What happens to my items when I croak (if they are all trustees)?  Do they end up having to transfer items out to their own respective trusts anyway?

Just looking for recommendations/advice on how to handle this for the future.

Tag/bookmarker, as I have minor children and have wondered about this. Beneficiaries don't need to be 18 (and have the necessary fingerprints/etc.), only trustees?

The easiest would be to have them setup their own trusts as they "age out" and form 4 the items to each.

A word of caution though, I would wait until 21 no matter what you do as I think it would effect future form4s from a dealer for "responsible persons" 18-20.

All NFA items I purchase get a separate trust.  No need for fingerprinting beneficiaries as they get added after approval.  That would keep your problem from ever being a problem.

Not a bad idea.  More paperwork on my end but would get rid of the "but i own that one!" fights when the kids become adults.

Not a bad idea.  However, I was trying to avoid having to pay another transfer from my trust to theirs when they become and adult.  Maybe there's no way around it.  I may start another trust for each of them (in my name), now, and then add them to it after they hit 21.  That way we'd only have to pay to Form 4 their current cans to the new trusts.

There is a section of my trust that deals with what to do when I die. Currently, everything goes to my wife. I can stipulate that I want X NFA item to go to person Y if I want to. Look at your trust and if you have a section like that, just list each item by make/model and who it goes to when you die. Make sure to keep that page of the trust updated as new stuff is purchased. This avoids you having to pay a second transfer on everything.

How would this avoid a second transfer?  Wouldn't it still require a Form 4 to move out of your trust to another person/trust?

It avoids a second paid transfer.

If your trust is setup properly, the kids can have possession (even when they're <18 depending on state/local laws) all the way up to your death. Then, depending on who you want to inherit what, those items could transfer to their trust on Form 5. (That way they can have multiple possessors too, and name an heir later in life if they want.)

So theoretically no tax has to be paid on these heirlooms ever again. It works with individual heirs too; the trusts are just beneficial for allowing multiple possessors.
Form 5 (tax exempt) transfer is the norm for any inherited NFA firearms.

If you've got pre-86 dealer sample MGs then it gets more complicated, since the heir needs to hold an FFL/SOT at the time of inheritance (but not afterwards).

Upon your death, the executor of your estate is who takes immediate possession of your NFA firearms, and they're the person expected to execute all the transfers, so be sure it's someone who knows what they're doing, and keep your document(s) updated if that person changes.

Thank you!  I need to take a look at my trust.  Did you have a local attorney do yours, or online?

I just kind of copied some trust paragraphs and edited them together. I don't have any kids so it's simple. An attorney should know about any potential issues specific to your state. My state has some statutes about wills, trusts, and inheritance but it's all pretty straightforward. This differs state-to-state however so if you DIY make sure you read/know all that.

If you have access to some well-researched trusts written for your state it makes it easier to edit one, of course.

On the flip side, I've seen some language that was needlessly complex.

As Kitbuilder already said, inheritance are done on a tax free form 5. I crafted my post poorly. It does require a second transfer, it just won't cost anyone anything. I had my trust done by a lawyer in my state that specialists in NFA trusts. He has provided free of charge a few updates to my trust. The first was a language change post 41F and the second was to change my schedule A from listing all of my NFA items to stating all approved NFA forms and all forms being proccesed by the ATF are under the control of my trust. This keeps me from having to update the schedule anytime I buy something new.