My brother, a PA resident, had a trust created with him listed as grantor and me listed as a trustee. I am a non-PA resident. I have a lower that I want to register as an SBR utilizing the trust. I would like to store the SBR in my home state. Is this possible? As a trustee, I’m not sure how much control I have regarding the trust. I do realize that my brother has absolute control as grantor, and that the SBR becomes property of the trust.
I live in a rather restrictive state regarding NFA items; however, SBRs are still permitted. I would have created an in-state trust, but the cost of an attorney drafted trust outweighed the benefit of owning a single SBR and I was not going the DIY trust route.
I believe it depends on how the trust is drafted, but you should have just as much power (to buy NFA items) as he does. His power involves dealing with the trust (getting rid of trustees, changing benefactors etc.). The trust is what actually owns the item, so any trustess can go to a dealer and start paperwork.
The only question is how you fill out the paperwork with the trust having an address in PA, but you will be keeping the item at your house out of state. All of my trustees live in PA with me, so I will let others answer that question.
Creators of trusts certainly have the power to place property in trust. But, the question here is, do you as a trustee have the power to place or acquire property in trust? Maybe, maybe not. There are pros and cons either way. Check the trustee powers in the trust.
The trust would have to legally acquire its property. How does the lower in your state get lawfully transferred to a Pa. trust?
A regular lower is not an NFA item. There is a difference with regard to trusts/LLCs/corps acquiring NFA and GCA items.
The solution may be for you to transfer your out of state lower to a Pa. FFL for your brother to personally purchase as a GCA item. He places it into the trust. The trust then submits the Form 1 to make it into a NFA SBR.
However, BATFE expects the SBR to reside in Pa. So, you would have to go through the travel authorization/notice procedure to move the SBR out of state.
Anything that complicated suggests maybe the better course of action would be to form 1 the lower yourself in your state, or have a separate trust prepared. You say that a trust is not worth the cost for a single SBR, however I bet you have one or two other firearms, or might acquire them, and there are reasons to have a personal trust with regard to your entire collection, NFA and non-NFA.
Since the lower (stripped in its current configuration) is not a handgun, would I still need to do an FFL transfer if I gift it to my brother and he places it in the trust? I have no problem doing a transfer to cover our assess, but I don’t see the need if it is not necessary.
It looks like we will have to go with a 5320.20 regarding travel/storage. I was just curious if it could be done as I originally asked. Thanks for the replies. I know the NFA stuff is really not this complicated, but I would hate to run a foul of the law.
+1 on the statement that it all depends on how the trust is drafted and the powers it provides to you as a trustee.
Trustees, again depending on the language of the trust, should be permited to transfer property to the trust.
Finally, Class 3 items can be stored / used in different states under one trust so long as it is in the possession / control of a trustee and the ATF has approved it.
I did a quick look at ATF P 5300.21 dated January 2013. It says:
“An unlicensed individual is prohibited from directly transferring a firearm to a person residing in another State. Regardless of the purpose of the transfer (e.g. gift, trade, loan, sale, ownership, etc.), this restriction applies to all types of firearms.”
Thanks for looking that up. I’m going to see my brother this weekend and go over the trust. According to him, it’s a 50 page document. I’m sure it will specify my role and duties.
Worst case you could always amend the trust to include all rights to purchase items.
I think the biggest issue will be having the trust in one state and the firearm in another. A dealer or a call to the ATF would most likely need to be in order. Let us know how it turns out.