Sharing is Caring, and Trust is a Must.

Even on a Saturday morning? Well, let’s continue. Before we focus on NFA trusts, let’s talk about how a trust is created. First, the Settlor/Grantor (the creator of the trust) makes a written Declaration of Trust. This names the trust, describes its purpose, sets out its rules, appoints the Trustee of the trust, names the beneficiaries, and otherwise complies with the law of the State in which it is created. It also often describes the property that the Grantor is conveying to the Trust (we’ll call that “Exhibit A” for later reference).

Then, the corpus (property, cash, or other interests) must be granted to the trust. If I am putting a piece of real estate into trust, I must deed it in; however, because a trust is a vehicle, not an entity, it gets deeded to the Trustee of the trust. So, the deed states that, “I, Remington Ithaca Red (the “Grantor”), a married man, of 3d Oaktree To The Left, Bumfuq, NH 00000, do hereby grant to Remington Ithaca Red (the “Grantee”), a married man, of 3d Oaktree To The Left, Bumfuq, NH 00000, as Trustee of the Homespun Trust, dated March 14, 2026, that certain real estate and the buildings thereon, located at, etc.”

It’s Saturday morning, life is great, and I feel fine! And don’t call me Shirley!

But, Professor Red, you exclaim, the Grantor and Grantee are the same person! And I say, no, the first is acting in his personal capacity and the second is acting as a Trustee, two completely separate legal entities. The first has completely given up any rights he had to the property; the second now owns it, but on behalf of the Trust and bound by its terms!

Now, here’s the great thing that makes a trust so effective as a planning tool – well, there are several great things: When the Settler creates the trust, he not only chooses the first Trustee (often himself), but he also chooses and names the Beneficiaries, one of whom can be himself in his personal capacity! He can also name a Co-Trustee(s)(this is where we deal with the NFA).

Now, virtually anything can be put in trust – land by a deed, personal property by a bill of sale, etc. A vehicle would need to be retitled and registered in the Trustee’s name as trustee of the Trust. It is always conveyed to the Trustee of the Trust in that capacity; that’s what legally changes the ownership status.

You know me well, Miss Emily. And, besides it’s Saturday! Range Day!