NFA: Should My Spouse or Significant Other Be a Co-Trustee?
Under the NFA, only the individual named on the tax stamp may be in actual or constructive possession of the NFA item. For this reason, trusts became popular because a trust holding the tax stamp allows for multiple individuals to be in possession of the NFA item as current, co-trustees. However, that means the co-trustees must submit fingerprint cards, photos, and responsible person forms with every NFA purchase. This can be a hassle. Sometimes we are asked if a spouse or significant other really needs to be a co-trustee. No, they do not so long as the trust NFA items are secured so that only the current trustee can be in actual or constructive possession. An understanding with others that they will not touch the NFA item is not enough.
