TexasCHLforum.com

So this brings up a question that I have since the changes to the NFA CLEO sign off requirements in 2016. The trusts and corporations and LLCs previously often used as a workaround in a jurisdiction, where (unconstitutionally in my view) the CLEO would not sign the registration forms for NFA items. I recall hearing about people using corporations as far back as the early 1980's, before LLC/LLPs even existed. Apparently some time in the 2000's some enterprising esquires came up with the idea of using a trust as an entity because they are easier and cheaper to form and maintain. I was able to get CLEO sign off on 3 NFA items (two machineguns and a silencer) in the early 2000s and registered them in my name individually.

I'm quite familiar with trusts and limited liability business entities like corporations and LLCs and have used them for business and investment purposes. However, I really see no particular advantage in creating a trust solely for registration of NFA items. After 2016, all individual trust or entity "responsible persons" have to have approved NFA forms on file with prints and pictures and successful background check. So what is the point. Why not register them in your individual name?

I want my kids to inherit them...that's what a will or testamentary trust is for.

I want my brother in law or other people to be able to use and shoot them....without you present? Why? Is this really that common? My wife isn't that interested in my guns, but the ones she wants to shoot are title I rifles and pistols. If she really wants to shoot the MG she'll come to the range with me.

Everyone I talk to about NFA items seems to think trusts are necessary and useful, but no one can seem to articulate why. I think it's because lawyers make a few bucks marketing them. My business and real estate lawyer was interested in NFA stuff, but I told him how he could get the items registered in his name and he didn't try to sell me on a trust or entity, even though he did a Series LLC for my rental houses.

Paladin wrote: ↑Thu Dec 12, 2024 12:28 pm

A reporting company created or registered to do business before January 1, 2024, will have until January 1, 2025, to file its initial BOI report.

My understanding this is about companies that do business, not gun trusts.

It may depend on the value of the assets in the trust.