PDA

View Full Version : Dealer to Dealer to Trust xfer question



gatordev
18 October 2012, 14:00
Let me preface this by saying I understand that there can be a lot of noise on the internet about how the ATF will be knocking on your door for various reasons and how some of those reasons may or may not be far-fetched (like multiple uppers for one lower, for example). So with that said, I'm asking both if I'm understanding (or misunderstanding) something regarding a transfer as well as if anyone has done the same thing.

Here's the scenario...

Let's say you purchase a NFA item from an out of state dealer with personal funds (and not funds from a Trust). The dealer Form 3s it to your in-state dealer. You then fill out the Form 4 along with all the normal stuff (trust, compliance, assignments) and pay the tax with funds from the Trust.

Are you conducting an authorized transfer because you bought it personally? Or, maybe another way to ask this is when a Form 3 is approved, that's only between the two dealers, right? Or does the individual buyer's name go on there, as well?

I ask because of this link:

http://www.guntrustlawyer.com/2012/06/atf-indicted-15-individuals-fo.html

Furthermore, in some other documentation, he recommends that even if you did what I described above, you could just submit a letter authorizing the purchase and include it in all the other paperwork when you send off the Form 4.

Has anyone done this? Or anyone worried about it? Or does this not apply because it would be Form 3'ed first?

I've only done Form 1s before, so I'm trying to make sure I understand the Forms 3 and 4 process ahead of time.

Appreciate any thoughts.

eodinert
24 October 2012, 11:05
Hmm... A lawyer selling trust writing services telling you that you need to pay him so you don't do it wrong. Seems legit. <-sarcasm

Put the serial number of the thing you bought on your schedule A. It's nobody's business how it ended up in the trust but yours, and you putting it in your trust by writing it on your schedule A is perfectly legit.

TripleBravo
24 October 2012, 19:56
You asked a few different questions in there. I'll answer this one since eodinert answered the other.

The form 3 is just from SOT dealer to SOT dealer. The form 4 is from SOT dealer to either individual or, in your case, SOT Dealer to trust. The only "biographical" information (for lack of a better term) on a Form 3 is that of the two SOT dealers.

I've never heard of the BATF having a concern about "where the funds for the purchase come from" in the case of a transfer to a trust.

gatordev
31 October 2012, 12:46
Hmm... A lawyer selling trust writing services telling you that you need to pay him so you don't do it wrong. Seems legit. <-sarcasm


Just to clarify, he wasn't offering his (paid) services to write the letter, just recommending the Trustee write it and attach it, but I still take your point.


You asked a few different questions in there. I'll answer this one since eodinert answered the other.

The form 3 is just from SOT dealer to SOT dealer. The form 4 is from SOT dealer to either individual or, in your case, SOT Dealer to trust. The only "biographical" information (for lack of a better term) on a Form 3 is that of the two SOT dealers.

I've never heard of the BATF having a concern about "where the funds for the purchase come from" in the case of a transfer to a trust.

Thanks. That was how I understood the Form 3, so wanted to make sure that was the case. Appreciate the help. Process started and time to wait.