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Armory Sponsor
8/26/2015 9:29:40 AM EDT
I created a trust last year for NFA purposes.  Copied my buddy's whose wife is a lawyer, so I'm sure that all of the legal mumbo-jumbo is correct.  Now that I am about to use the trust, I'm looking over it and making sure that I set it up correctly.  My goal is to pass on the possessions of the trust to my two son's.  They are currently listed as the beneficiaries with my sister serving as a successor trustee until each son reaches the age of 21.  Seems good so far, but what confuses me is this.  Should I also list them as trustees (with the age provision)?  Can a trust live on and continue after my death- i.e. can my sons, now trustees, continue to use the property and enjoy the benefits of the trust without having to disperse it to the beneficiaries (which would be them)?  Would this avoid them having to pay another tax stamp for each item?
8/26/2015 11:08:52 AM EDT
[#1]
There's no tax stamp to pass NFA items to heirs or beneficiaries under a decedent's will or trust--it's a tax-free transfer on Form 5.  Perpetual trusts are possible in some states, but considerably more complicated.
8/26/2015 11:14:16 AM EDT
[#2]
Thanks.  After re-reading it in detail, I think that it is OK the way that I have set it up.  Since only the grantor (me) can amend the trust, it really can't live on forever.  I'll just leave it as-is and let the disbursements happen as planned.  If I am still alive when my children reach the age of 21, I can amend the trust to make them trustees.
Armory Sponsor