Establish a NFA Trust

There are a few ways you can legally own and use NFA firearms.  You can own/purchase NFA items through a NFA Trust – like the ones we create for you.  Also, corporations, limited liability companies, partnerships, and individuals without a NFA trust can legally own/purchase NFA firearms.

NOTE:  Although NFA firearms are allowed to be owned under the above entities at a federal level, the state you live in might not allow you to purchase/own NFA items.  If you are unsure if your state allows NFA firearm ownership, please contact us and we will help determine if it is legal to do so.

A NFA Trust is a legal trust document that caters to the National Firearms Act (NFA) and the firearm laws.  NFA Trusts are generally used for civilians to legally own/purhcase and use NFA firearms.  NFA Trusts are also used to legally pass down NFA and Non-NFA firearms that member has acquired over the period of their life.  NFA Trusts describe how the items in the Trust are going to be passed on after the settlor is incapacitated, passes away, or is no longer able to manage the trust.

Three of the most important benefits of a gun trust are:

(1) NFA firearms registered to a gun trust can be used and possessed by more than one person. The settlor of the gun trust can add or delete persons (co-trustees) who are allowed to use and possess the NFA firearms throughout his or her lifetime. NFA firearms registered to an individual can only be used and possessed by the registered individual during the individual’s lifetime.

(2) If your NFA firearms are owned by you individually and you are later deemed to be incompetent, your NFA firearms are subject to confiscation immediately since it is illegal for any other individual to take possession of your NFA firearms. On the other hand, if your gun trust owns your NFA firearms, any co-trustee can take possession of your NFA firearms to hold them on your behalf. In other words, you will not lose ownership of your firearms. As as result, you will retain the ability to either direct that the NFA firearms be sold and the cash returned to you, or that the NFA firearms continue to be held in trust for the beneficiaries to inherit when you die.

3) NFA firearms registered to a gun trust pass to the beneficiaries of the gun trust outside of the probate process according to the terms and conditions of the gun trust agreement prepared by the settlor. NFA firearms registered to an individual pass to his or her beneficiaries according to the terms of the individual’s last will and testament, which is probated in a probate court and provided to the ATF during the transfer process so the executor can prove to the ATF that the individual intended to transfer the NFA firearms to the beneficiaries.

No.

Since the gun trust is a revocable trust, it does not need to be registered or recorded with the State of Arizona or any county or local government entity. An NFA trust is not a public document, rather it is private, much like a will. However, when the trust files an application with the ATF to transfer or make an NFA firearm, a complete copy of the gun trust, any amendments, and any current appointment of additional co-trustee documents are filed with the application.

NFA firearms must be titled in the name of an individual or an entity, much like other real property (land) and some types of personal property, such as cars, trucks, boats, and airplanes.  However, unlike almost any other kind of titled property, the ATF has never allowed more than one person’s name to appear on the ATF tax stamp, which is effectively a title certificate.  As a result, if an NFA firearm is titled in the name of an individual, only that specific individual may possess it.  One of the chief advantages of registering NFA firearms in the name of a gun trust, rather than in the name of an individual, is that more than one person may legally possess and use the NFA firearms. 

As an example, for a married couple, it almost always makes sense for an NFA firearm to be registered in the name of a gun trust.  Suppose the husband owns a suppressor, which is legally registered with the ATF in his own name.  The husband goes to work and leaves his suppressor at home.  If the wife stays at home that day and could have access to the suppressor (such as in a safe she knows the combination to), she is committing a federal felony offense that carries a prison sentence of up to 10 years and/or a fine of up to $250,000. 26 U.S.C. §§ 5861, 5871; 18 U.S.C. § 3571(b).  Further, the suppressor is subject to seizure and forfeiture. 26 U.S.C. § 5872.  If convicted, the wife loses her right to own or possess any kind of firearms in the future.  In addition, if the husband instead left the suppressor in the wife’s vehicle, the vehicle is subject to seizure and forfeiture.  If the husband had simply registered the suppressor in the name of a gun trust and appointed his wife as a co-trustee of the trust, this situation would have been prevented.  Additionally, the husband could appoint other individuals, such as friends and family who may legally possess firearms as co-trustees of the trust, as long as the other individuals agree in writing to be co-trustees.

No.

As part of the ATF application process, the ATF conducts a background check on each “Responsible Person” to ensure that each “Responsible Person” is not prohibited from receiving and possessing firearms and ammunition.  In addition, when the trustee visits the dealer, the trustee provides the dealer with his or her driver’s license, and optionally, his or her concealed carry permit (CCW/CHL, etc), and completes an ATF Form 4473, which is the same ATF form a person would fill out if he or she were buying any a non-NFA firearm from a dealer.

Yes.

We provide you with all documents/amendments that you use to change beneficiaries, add/remove co-trustees, etc.  You are able to amend your NFA Trust at any time without any assistance from us.  If you have questions during this process, we are happy to provide you with guidance. 

Note: Always keep the original amendments with the NFA Trust to ensure your NFA Gun Trust is up to date.