Benjamin
Franklin long ago said that “nothing can be said to be certain, except death
and taxes”. But in America, another certainty is the large number of guns all
over the country. Even though America leads the world in gun deaths,
America’s love of firearms shows no signs of abating. In many parts of the
country, even the mildest of gun-regulations is anathema
to any politician hoping to get elected or stay in office.
Although there is no sign that robust gun-control legislation will become law, fear of gun confiscation still runs high throughout much of the country. Many people believe that a firearm is the only thing stopping the government from turning into a totalitarian dictatorship. It is because of this environment that many of those interested in protecting their Second Amendment rights have turned their sights to a specific Trust which adds an extra layer of protection to gun rights. It is called the NFA Gun Trust.
The NFA Gun Trust is specifically geared toward weapons listed under Title II of the National Firearms Act. By way of introduction: the National Firearms Act (NFA) was enacted in 1934, amended in 1968 and 1986. Title II of the NFA regulates certain types of guns and weapons which are considered more dangerous than other firearms. These include silencers, short-barreled shotguns, short-barreled rifles, explosive ordinances, and other types of weapons. The NFA has strict requirements with severe penalties for breaking them. Among the requirements is that each weapon must be registered with the ATF (Bureau of Alcohol, Tobacco, and Firearms). The owner is the only individual allowed to possess the weapon. Also, the owner must notify the Bureau of Alcohol, Tobacco and Firearms when crossing state lines with the weapon.
Purchasers of these weapons must also undergo a background check as well as get approval from a local law-enforcement officer (most of the time, the local sheriff). Many times, the local sheriff refuses to approve the purchase.
Although there is no sign that robust gun-control legislation will become law, fear of gun confiscation still runs high throughout much of the country. Many people believe that a firearm is the only thing stopping the government from turning into a totalitarian dictatorship. It is because of this environment that many of those interested in protecting their Second Amendment rights have turned their sights to a specific Trust which adds an extra layer of protection to gun rights. It is called the NFA Gun Trust.
The NFA Gun Trust is specifically geared toward weapons listed under Title II of the National Firearms Act. By way of introduction: the National Firearms Act (NFA) was enacted in 1934, amended in 1968 and 1986. Title II of the NFA regulates certain types of guns and weapons which are considered more dangerous than other firearms. These include silencers, short-barreled shotguns, short-barreled rifles, explosive ordinances, and other types of weapons. The NFA has strict requirements with severe penalties for breaking them. Among the requirements is that each weapon must be registered with the ATF (Bureau of Alcohol, Tobacco, and Firearms). The owner is the only individual allowed to possess the weapon. Also, the owner must notify the Bureau of Alcohol, Tobacco and Firearms when crossing state lines with the weapon.
Purchasers of these weapons must also undergo a background check as well as get approval from a local law-enforcement officer (most of the time, the local sheriff). Many times, the local sheriff refuses to approve the purchase.
Transferring these weapons to another person is no easy task. If the owner wishes to sell his firearm, or if he dies and leaves it to his heirs, the recipient of the weapon must pay a $200 transfer tax, file an ATF transfer form, and jump through the same hoops as someone purchasing an NFA firearm for the first time.
The NFA Gun Trust may solve many of these problems and make the process of transferring a weapon less burdensome. Gun Trusts are revocable. There is at least one trustee (who is usually also the settlor or the grantor), at least one beneficiary, and the trust property (the firearms). A gun trust allows the customer to purchase guns in the name of a trust instead of in the purchaser’s name. This allows the purchaser to bypass many of the aforementioned regulations under Title II.
Usually, for NFA firearms, only the registered owner is allowed to possess the weapon. By appointing additional trustees, the gun owner can allow others to use the weapon.
For Estate Planning, the owner can appoint additional trustees or beneficiaries to the trust. That way, the gun owner can easily pass the firearms to his heirs without having to bother with the burdensome ATF regulations.
An additional benefit for estate planning purposes is that the gun trust will act as a guide to the executor of the estate who may otherwise not be familiar with the complex NFA Gun laws.
Gun
trusts are becoming more and more popular. According to the Bureau of Alcohol,
Tobacco, Firearms, & Explosives (ATF), 111,599 trusts were set up in 2014,
up from 13,710 in 2009.
Obviously, Gun Trusts are controversial. A gun purchased by or transferred to a Gun Trust used to allow the purchaser or beneficiary to avoid a background check, fingerprinting, or obtaining the approval of a law enforcement officer while simultaneously enjoying the benefits of private-gun ownership. But new regulations signed by Attorney General Loretta Lynch on January 4th added new hurdles to setting up a legal trust. Starting in July, all the members in a new trust must get a background check as well as submit fingerprints and photos to law enforcement. But the trust still allows the members to skip the approval of local law enforcement. The July deadline has caused a huge surge in the registration of gun trusts.
Obviously, Gun Trusts are controversial. A gun purchased by or transferred to a Gun Trust used to allow the purchaser or beneficiary to avoid a background check, fingerprinting, or obtaining the approval of a law enforcement officer while simultaneously enjoying the benefits of private-gun ownership. But new regulations signed by Attorney General Loretta Lynch on January 4th added new hurdles to setting up a legal trust. Starting in July, all the members in a new trust must get a background check as well as submit fingerprints and photos to law enforcement. But the trust still allows the members to skip the approval of local law enforcement. The July deadline has caused a huge surge in the registration of gun trusts.
It is important to note that Title II weapons are prohibited in New York and in other states. For residents of these states, the main benefit for creating a gun trust will be estate planning and insuring that one’s firearm is passed on to its intended beneficiary. There are many “do it yourself” sites popping up on the web. But nothing can substitute for a qualified estate planning lawyer who is well versed in this area of the law.
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