 CGP2
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Joined: Mar 2011  TX, USA
 Posts: 707 Feedback: 100% (118) |
Posted: 7/24/2012 10:16:26 PM
THE IMAGE ABOVE IS A PAID ADVERTISEMENT My question is, if the seller puts me as a trustee in his trust while waiting for the Form 4 to clear, does this mean I can take possession of the SBR since I am a trustee? |
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Posted: 7/24/2012 11:07:45 PM
If your a trustee then yes
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Posted: 7/24/2012 11:37:14 PM
Just be real careful as the BATFE doesn't like it when people look like they're avoiding taxes.
Az |
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Posted: 7/24/2012 11:46:14 PM
Originally Posted By AzB:
Just be real careful as the BATFE doesn't like it when people look like they're avoiding taxes. Az Form 4 will be done immediately so taxes are paid. The difference is that with me included in the trust of the seller as a trustee, I get to play with the toy way before the Form 4 is approved. At least, that's my understanding . |
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Posted: 7/25/2012 6:20:53 PM
Originally Posted By CGP2:
Originally Posted By AzB:
Just be real careful as the BATFE doesn't like it when people look like they're avoiding taxes. Az Form 4 will be done immediately so taxes are paid. The difference is that with me included in the trust of the seller as a trustee, I get to play with the toy way before the Form 4 is approved. At least, that's my understanding . be careful .. I know that you could in essence take over a corporation and all their assets (SBR's, MG's, silencers) and be kosher as the Corp still owns them even if under new management. But with a Trust I think its a little different. By the seller adding you as a trustee and you taking posession before the F4 clears might be perfectly fine .. I wouldn't and would recommend against it. |
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Homeinvader
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Team Member
Joined: Jul 2003 USA
Posts: 3075 Feedback: 100% (4) Link To This Post |
Posted: 7/25/2012 10:35:49 PM
Originally Posted By CGP2:
I have a seller who wants to sell me a SBR currently on a Form 1 and is under a trust. Since were both in Texas, I am told all we need to do is a Form 4. Once approved, I become the legal owner of said SBR. My question is, if the seller puts me as a trustee in his trust while waiting for the Form 4 to clear, does this mean I can take possession of the SBR since I am a trustee? He's a total stranger and he's offering to add you as his Trustee so you can have sole possession of the SBR while waiting for the Form 4 to approve? Galactically stupid of him. Another example of someone having no clue what they're doing with their trust. It's not a simple thing to isolate and limit the power of a Trustee. Trustees generally have the power and authority to sell trust assets, spend trust money, etc. You are also accepting a fiduciary responsibility in becoming a Trustee. None of this should be taken lightly. |
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Posted: 7/25/2012 11:45:21 PM
Originally Posted By Homeinvader:
[quote]Originally Posted By CGP2: It's not a simple thing to isolate and limit the power of a Trustee. Trustees generally have the power and authority to sell trust assets, spend trust money, etc. You are also accepting a fiduciary responsibility in becoming a Trustee. I disagree. It is extremely easy to limit the power of trustees; a few lines added to the trust specifically delineating the limits of their responsibilities is all you need. And these lines can be added at any time by the grantor/settlor. A trustee would be in a great deal of legal hot water for appropriating funds or property designated for a beneficiary. Not only from a civil lawsuit from the grantor/settlor and/or the beneficiary, but also any tax related organizations like the IRS and the BATFE. It would be supremely stupid for a trustee to sell anything from a trust, but NFA items would quickly land them in some pretty hot water. Az |
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Posted: 7/26/2012 8:54:36 PM
This would be a great question for the Trust Lawyers.
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Posted: 7/26/2012 9:44:27 PM
Originally Posted By No2sc2:
This would be a great question for the Trust Lawyers. Do they hang out here every now and then?  |
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Homeinvader
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Joined: Jul 2003 USA
Posts: 3076 Feedback: 100% (4) Link To This Post |
Posted: 7/26/2012 9:58:02 PM
Originally Posted By AzB:
Originally Posted By Homeinvader:
[quote]Originally Posted By CGP2: It's not a simple thing to isolate and limit the power of a Trustee. Trustees generally have the power and authority to sell trust assets, spend trust money, etc. You are also accepting a fiduciary responsibility in becoming a Trustee. I disagree. It is extremely easy to limit the power of trustees; a few lines added to the trust specifically delineating the limits of their responsibilities is all you need. And these lines can be added at any time by the grantor/settlor. A trustee would be in a great deal of legal hot water for appropriating funds or property designated for a beneficiary. Not only from a civil lawsuit from the grantor/settlor and/or the beneficiary, but also any tax related organizations like the IRS and the BATFE. It would be supremely stupid for a trustee to sell anything from a trust, but NFA items would quickly land them in some pretty hot water. Az If you are talking about having a lawyer do it, then fine, but that's neither easy nor cheap. If you are referring to the Grantor himself making revisions to try to limit Trustee powers, this is very unwise unless you know exactly what you are doing. |
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