Selling/Disposing of NFA Trust Property

[RenegadeConservative]

Silly question...

Assuming that a trust agreement has a "Right to Add, Withdraw, Amend and Revoke Clause"...can the Grantor/Trustor sell or otherwise dispose of (NFA related) trust property if he/she deems it in the best interest of the trust and all applicable laws are followed? For example, can the Grantor sell or trade a machine gun from the trust in order to finance another trust purchase? If so, would a note be added to the applicable Schedule A that the trust was no longer in possession of Item X?

I know this is a dumb question but I can't find the answer anywhere else (Prince, GunTrust Lawyer, et al).

[ExecDirector]

It all depends on how the trust was written. If the Grantor is given the same powers as the trustees or if the Grantor is also named as a Trustee, then you should be fine. I keep detailed records of all purchases and sales with my trust document.

[RenegadeConservative]

Thanks.

The whole trust issue can get a little confusing at times.

[ExecDirector]

Think of a trust entity as a person. Mostly because it is a person. Legally, it is a non-natural person, though specific definitions vary. The trust document is a "birth certificate" that spells out the various roles and functions of different "organ systems" of the person. The grantor gives the person life. The trustee is charged with maintaining the person and the beneficiaries get the property of the person after certain defined events occur. One natural person can have one or more functions within the non-natural person.