Since beneficiaries don't have to have the Responsible Person form done at time of transfer, anyone know what needs to take place when a beneficiary then becomes a responsible person on a trust, so he/she can be a legal user of included NFA items?
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Since beneficiaries don't have to have the Responsible Person form done at time of transfer, anyone know what needs to take place when a beneficiary then becomes a responsible person on a trust, so he/she can be a legal user of included NFA items?
Nothing, assuming you're talking about a beneficiary becoming eligible (old enough) to possess the items or changing roles, other than amending the trust to make them a trustee.
You submit paperwork (5320.23) to the ATF at the time that you apply for transfer and are free to modify your trust as you see fit before and after. Trusts are not regulated or licensed by the ATF, so there is no requirement (or even means) to notify the ATF of a change in trustees. The settlor, grantor, and trustees are obviously responsible for ensuring the trustees can legally possess the items. If the trustees change, the trust should reflect this and a reading of the Form 1 or 4 with the trust should resolve that the trust is the owner and who the trustees are.
At least one common trust provider (NFA Lawyers) provides an amendment form to submit with their trust to terminate all co-trustees. Their advice is to shred it after submitting to ATF.
If you're talking about transfers upon the death of the settlor and grantor, then a Form 5 (Application for Tax Free Transfer) is completed.
How NFA trusts are written can have a large impact on RP and what beneficiaries can/cannot do. For instance, my trust is written in such a way that beneficiaries can use trust property at any time (with the permission of the trustee). I would suggest talking with a seasoned NFA lawyer.