E-filing Form 1 for SBR: individual or trust?

[Anymouse]

The last time I filed a Form 1 was pre-41P/41F, so I used a trust to avoid the CLEO signature requirement. Now that 41F is in effect, most people seem to feel that there isn’t much point in filing a Form 1 using a trust. Also, the last time I purchased an NFA item (post-41F), my dealer advised me that the ATF processing time was longer for trusts, so I purchased it in my name.

Now that the E-filing system is up and running, I’m going to build another SBR before the Dark Ages descend upon us. The question is, who will be the “Applicant” on the Form 1?

If I file the Form 1 in my name, I have to have my name, city, and state engraved on the lower receiver; but if I use a trust or business entity, I would have that name engraved instead.

I don’t see any advantage to having my name on the receiver, and I see a disadvantage in that it would make it harder for my estate to sell the rifle after I’m gone … who wants to buy a gun that has someone else’s name permanently engraved on it? I think that would call for a steep discount in the selling price. So it seems to me that, since I can use any name I want for the trust, the trust would be the better route to take.

Since I already have a trust that has been accepted by ATF I can use it, or I can create a new trust by re-typing the old trust and using a new name.

Alternatively, one of the business entities I own could be the applicant (I used that method years ago before we all began using trusts). The annual filing fees in my state are very low.

My question is, am I missing something here? I’m open to any opinions or comments.

[Wake27]

If you already have a trust, I don’t see why you wouldn’t use it. E-file form ones still look to be coming back in about a month. I did two over the summer that were 16 and 17 days or something like that.


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[Bret]

I think you've got a pretty good handle on the situation. If I was in your situation, I still might want to avoid adding items to the trust. A trust is a legal entity that has to be maintained. There's nothing to maintain if you file as an individual.

I don’t see any advantage to having my name on the receiver, and I see a disadvantage in that it would make it harder for my estate to sell the rifle after I’m gone … who wants to buy a gun that has someone else’s name permanently engraved on it? I think that would call for a steep discount in the selling price. So it seems to me that, since I can use any name I want for the trust, the trust would be the better route to take.

Factory SBR's are better from a sales standpoint if you can get one. I always buy them versus doing a Form 1 because of this. As to whether you'd have to discount an NFA item to sell it simply because it has your name on it, I find that's generally true. However, it does depend on exactly what you have. It might also depend on laws and regulations that change in the future. Sometimes people disassemble or demill SBR's because they can get more for them demilled or in non-NFA configuration. I don't think having a trust versus your name will make one bit of difference when it comes to selling an NFA item.