Armory Sponsor
Posted: 11/8/2014 11:59:12 PM EDT
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I just made a trust online. Im 20 now. But i listed a good friend as a trustee. He is over 21
To my understanding I cannot purchase a NFA item from a dealer. He does not have a trust of his own set up yet so he was asking if he could buy a suppressor now. But being the owner of the trust my buddy cannot buy a suppressor and transfer it to my trust. It would be in his possession. Thoughts? |
| i believe that since you are the "grantor" you should be the one to initiate the purchase of the suppressor. As he is listed as trustee he may be in possession of the suppressor listed in the trust but I don't think he can buy one with your trust. I'm no trust lawyer though and trust requirements tend to vary from state to state so hopefully someone with more knowledge will post but I think this advice is considered "safe." |
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As a trustee, your buddy can purchase and take possession of a suppressor for your trust. However, the funds originating from him makes no sense since he'd be acting on behalf of your trust, your beneficiaries would receive the suppressor he paid for. The suppressor would not be his despite the monies coming from him, it would belong to the trust, and not a trust he has any control over.
If he wants his own suppressor, best to have him create his own trust. But legally you can initiate a Form 4 transfer through the trust for a suppressor and allow him as a trustee to pick it up from the dealer upon approval, then hand it over to you. |
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Quoted:
As a trustee, your buddy can purchase and take possession of a suppressor for your trust. However, the funds originating from him makes no sense since he'd be acting on behalf of your trust, your beneficiaries would receive the suppressor he paid for. The suppressor would not be his despite the monies coming from him, it would belong to the trust, and not a trust he has any control over. If he wants his own suppressor, best to have him create his own trust. But legally you can initiate a Form 4 transfer through the trust for a suppressor and allow him as a trustee to pick it up from the dealer upon approval, then hand it over to you. Depending on how the trust is set up, his friend most certainly can have some type of control over not just the suppressor he is possibly purchasing, but also any other items that may end up in the trust. OP: your best bet is to consult a lawyer who is familiar with trusts and NFA... |
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Quoted:
Depending on how the trust is set up, his friend most certainly can have some type of control over not just the suppressor he is possibly purchasing, but also any other items that may end up in the trust. OP: your best bet is to consult a lawyer who is familiar with trusts and NFA... Quoted:
Quoted:
As a trustee, your buddy can purchase and take possession of a suppressor for your trust. However, the funds originating from him makes no sense since he'd be acting on behalf of your trust, your beneficiaries would receive the suppressor he paid for. The suppressor would not be his despite the monies coming from him, it would belong to the trust, and not a trust he has any control over. If he wants his own suppressor, best to have him create his own trust. But legally you can initiate a Form 4 transfer through the trust for a suppressor and allow him as a trustee to pick it up from the dealer upon approval, then hand it over to you. Depending on how the trust is set up, his friend most certainly can have some type of control over not just the suppressor he is possibly purchasing, but also any other items that may end up in the trust. OP: your best bet is to consult a lawyer who is familiar with trusts and NFA... Of course he can, that's the entire purpose of a "trustee". But trustees generally don't use their own funds to purchase trust assets, it would be akin to donating money to the trust if he bought the suppressor himself as a trustee. Makes no sense from a financial perspective. |
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Quoted:
Of course he can, that's the entire purpose of a "trustee". But trustees generally don't use their own funds to purchase trust assets, it would be akin to donating money to the trust if he bought the suppressor himself as a trustee. Makes no sense from a financial perspective. Quoted:
Quoted:
Quoted:
As a trustee, your buddy can purchase and take possession of a suppressor for your trust. However, the funds originating from him makes no sense since he'd be acting on behalf of your trust, your beneficiaries would receive the suppressor he paid for. The suppressor would not be his despite the monies coming from him, it would belong to the trust, and not a trust he has any control over. If he wants his own suppressor, best to have him create his own trust. But legally you can initiate a Form 4 transfer through the trust for a suppressor and allow him as a trustee to pick it up from the dealer upon approval, then hand it over to you. Depending on how the trust is set up, his friend most certainly can have some type of control over not just the suppressor he is possibly purchasing, but also any other items that may end up in the trust. OP: your best bet is to consult a lawyer who is familiar with trusts and NFA... Of course he can, that's the entire purpose of a "trustee". But trustees generally don't use their own funds to purchase trust assets, it would be akin to donating money to the trust if he bought the suppressor himself as a trustee. Makes no sense from a financial perspective. i really appreciate the help. Clear understandable help. I owe you one  . I'll talk to him see what he wants to do. It would be kinda dumb for him to buy it now.
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Quoted:
Of course he can, that's the entire purpose of a "trustee". But trustees generally don't use their own funds to purchase trust assets, it would be akin to donating money to the trust if he bought the suppressor himself as a trustee. Makes no sense from a financial perspective. Quoted:
Quoted:
Quoted:
As a trustee, your buddy can purchase and take possession of a suppressor for your trust. However, the funds originating from him makes no sense since he'd be acting on behalf of your trust, your beneficiaries would receive the suppressor he paid for. The suppressor would not be his despite the monies coming from him, it would belong to the trust, and not a trust he has any control over. If he wants his own suppressor, best to have him create his own trust. But legally you can initiate a Form 4 transfer through the trust for a suppressor and allow him as a trustee to pick it up from the dealer upon approval, then hand it over to you. Depending on how the trust is set up, his friend most certainly can have some type of control over not just the suppressor he is possibly purchasing, but also any other items that may end up in the trust. OP: your best bet is to consult a lawyer who is familiar with trusts and NFA... Of course he can, that's the entire purpose of a "trustee". But trustees generally don't use their own funds to purchase trust assets, it would be akin to donating money to the trust if he bought the suppressor himself as a trustee. Makes no sense from a financial perspective. The financial aspect is irrelevant to what I was replying to in your answer. I was speaking specifically to your comment about his friend not having any control over items in the trust, or the trust it's self. |
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