What is a gun trust?
Simply put, a gun trust, or National Firearms Act of 1934 (NFA) gun trust, is a legal document (a form of revocable trust) that takes ownership of Title I and Title II firearms as specified by the NFA and the Gun Control Act of 1968, and allows those firearms to be passed down to others. A trustee manages the trust, the beneficiary(ies) can use the weapons, and the trustor is the creator of the trust.
Title I firearms are the most commonly owned, and include rifles with barrels at least 16 inches long and shotguns with barrels at least 18 inches long, which can be purchased over the counter.
Title II weapons include fully automatic firearms, short-barrel shotguns, short-barrel rifles, sound suppressors, destructive devices (grenades, bombs, mines, etc.), and “any other weapons” (smaller weapons and devices).
All NFA firearms will have a serial number and must be registered with the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF). Owners of these weapons must follow specific procedures to own Title II (also known as Class 3) weapons, which includes submitting a photograph and fingerprints, paying a $200 tax, and obtaining permission from the Chief Law Enforcement Officer in their jurisdiction. It is considered a felony to violate the NFA, even with a minor infraction such as letting a friend or family member fire the weapon.
The primary purpose of an NFA gun trust is to legally and safely manage and transfer NFA-regulated weapons due to the additional legal considerations required by their restricted classification.
What are additional benefits of a gun trust?
Multiple owners/trustees. Outside of a trust, a gun can only be owned by a single individual. A gun trust can name multiple individuals who can legally use the weapon. For NFA Title II weapons, beneficiaries will also need to go through the background check and identification process before they can take possession of the firearm.
Avoiding probate and protecting the executor. Guns held in a trust avoid the probate process upon the owner’s death, which makes estate administration much easier for the executor. Since an executor may not be familiar with the regulation of NFA weapons, they could inadvertently violate a criminal law by transferring ownership improperly.
Clear instruction for owner incapacity. The trust can lay out precise instructions for what to do when a gun owner becomes incapacitated and can no longer safely use the weapon. It also protects family members from incorrectly handling a restricted weapon or transferring ownership and thereby violating a criminal law.
Can last for more than one generation. Gun trusts can be tailored to very specific wishes, such as multi-generational ownership of the gun.
Privacy protection
By avoiding probate, which requires an executor to file an inventory of the estate, which is a public document, a gun trust remains private. In a scenario where an owner has a significant collection of rare or highly-valued guns, or if an owner has a large collection of NFA regulated guns, beneficiaries may not want that information to be public knowledge.
Seek professional advice
The experienced estate planning attorneys at Hackstaff, Snow, Atkinson & Griess are well-versed in all aspects of estate planning, wills, and trusts, and can help you create a comprehensive strategy that covers all of your assets and protects your beneficiaries. Contact us today for a free consultation.
