What happens to your NFA item if you die?

[INMIline]

What if you died and in your collection was a couple $10,000 machine guns, cans, etc. What would your spouse have to do to sell them?


I have no $10,000 machine guns. I am just wondering

 

[Scutter01]

They can be transferred to an eligible heir tax-free on a Form 5. Otherwise, they have to be sold on a Form 4 or destroyed.

 

[CountryBoy19]

They can be transferred to an eligible heir tax-free on a Form 5. Otherwise, they have to be sold on a Form 4 or destroyed.

IIRC, if they are specifically willed to a person other than a legal heir they can also transfer to that person tax free on a form 5.

This is where the "IIRC" part comes in though. That may only be true if you don't have any living heirs. I'm not positive, I don't think it matters, but wanted to included it just in case.

 

[GARANDGUY]

They can be transferred to an eligible heir tax-free on a Form 5. Otherwise, they have to be sold on a Form 4 or destroyed.

This is correct. However I have a NFA trust that names my wife in it and our training business so that it is transferred to her when I die. Still a form 5 I believe but it will be able to remain in her custody until the form5 comes back is what I took as being the main reason to do a trust from talking to the lawyer who did mine.

 

[GARANDGUY]

IIRC, if they are specifically willed to a person other than a legal heir they can also transfer to that person tax free on a form 5.

This is where the "IIRC" part comes in though. That may only be true if you don't have any living heirs. I'm not positive, I don't think it matters, but wanted to included it just in case.

That is true also but I think that person if not family has to pay an inheritence tax on it.

 

[Scutter01]

This is correct. However I have a NFA trust that names my wife in it and our training business so that it is transferred to her when I die. Still a form 5 I believe but it will be able to remain in her custody until the form5 comes back is what I took as being the main reason to do a trust from talking to the lawyer who did mine.

If your wife is already named in the trust, why would you have to transfer the item to her? (Unless she wanted it out of the trust and in her sole name)

 

[GARANDGUY]

I didnt think I had to with having a trust but then I heard that she would have to form 5 it. I just read after I posted that and you are right. She wont have to form 5 unless she wants it in her name only then. Thanks for the clarification. Ive had these for years and never worried about it.

 

[loony1]

I was curious about the same thing as of today. I read where an INGO member died yesterday and I remeber seeing pics of his class 3 stuff, sad

 

[curraheeguns]

I was curious about the same thing as of today.

Ownership of your stuff just automatically reverts back to your dealer...

 

[44 MAGNUM SHOOTER]

Can a class 3 be willed to an 18 year old?

 

[CountryBoy19]

Can a class 3 be willed to an 18 year old?

Yes, 18+ is ok for all Title II stuff. You just can't purchase through a dealer/manufacturer, it would have to be made (form 1) or bought from an individual in-state (form 4). So yes, it can be willed to any person age 18 residing in the same state. Not sure how it would work being out of state, I'm pretty sure that would have to go through a dealer, and they would then have to be 21. Although, maybe it could be transferred on a form 5 across state lines. I'm not sure how, if any, the form 5 varies from the form 4 except form 5 is tax free.

 

[Lex Concord]

They can be transferred to an eligible heir tax-free on a Form 5. Otherwise, they have to be sold on a Form 4 or destroyed.

 

[Scutter01]

 

[curraheeguns]

They can be transferred to an eligible heir tax-free on a Form 5. Otherwise, they have to be sold on a Form 4 or destroyed.

They can also be transfered tax free on a form 5 or a form 10 to a government agency other then ATF. (like a monetary donation to .gov)

However the only way the government agency could profit from your stupidness of giving away valuable machineguns is if you did it on a form 5. If you did it on a Form 10 they will never be owned by an individual or a dealer again.

 

[TREETOP]

My NFA items belong to my Family Trust rather than myself personally, my wife is named on my trust so she would still have legal possession of them. If she were to pass away alongside me, there are others named as beneficiaries of the trust.

 

[JTinIN]

All good points. One should also have a will and name an executor, just to keep thinks clean.

 

[CarmelHP]

I didnt think I had to with having a trust but then I heard that she would have to form 5 it. I just read after I posted that and you are right. She wont have to form 5 unless she wants it in her name only then. Thanks for the clarification. Ive had these for years and never worried about it.

How would it Form 5 out of a trust? If the trust is the owner, any subsequent transfer to any other individual, heir of yours or not, would be taxable.

 

[curraheeguns]

How would it Form 5 out of a trust? If the trust is the owner, any subsequent transfer to any other individual, heir of yours or not, would be taxable.

+1, I don't think a death would matter if it is owned by a trust, it would transfer on a taxable Form.

 

[CountryBoy19]

+1, I don't think a death would matter if it is owned by a trust, it would transfer on a taxable Form.

IIRC, I could be wrong, but I believe a couple years ago, ATF said that a named beneficiary of a revocable living trust (means the grantor must be living, and upon his/her death the assets are distributed to the beneficiaries) can receive a Title II firearm tax free on a Form 5 just as if it were coming from the individual that died.

 

[Ricnzak]

The whole trust concept needs exact legal advice on each matter of the estate. Consult a professional who specializes in what you are concerned about the most.