Gun Trusts: What are the benefits and why should I have one?
Gun ownership comes with tremendous responsibility. Responsible gun owners take great pride in exercising their rights to own firearms the right way. However, owners of specific firearms regulated under the National Firearms Act (“NFA”) should consider additional safeguards. One very useful safeguard is what is known as a gun trust. A gun trust is, like any other trust, a legal document that creates a legal entity – the legal entity (for example, “The John Smith Trust”) is created for the purpose of owning and registering specific property. The gun trust is used to own and register NFA firearms.
What firearms does the NFA regulate?
The NFA regulates the use, possession, manufacture, or transfer only of specific types of firearms. These include certain short-barreled shotguns and rifles (less than 18-inch barrel size with a shotgun, less than 16 inches for a rifle) and pre-1986 machine guns. The NFA, to the surprise of many, also regulates the use, possession, manufacture, or transfer of silencers and suppressors.
What steps must I take to legally own a NFA firearm?
Under current law, if you wish to own a NFA firearm you must fill out ATF Form 4, which is essentially just an application to acquire a NFA firearm. As part of the application process, you must submit fingerprints and photographs as part of a background check. You must also submit portions of the application documentation to your local “chief law enforcement officer” for signed approval. Once that process plays out and you pass a background check, you may legally obtain the firearm.
This process is set to change within the next three weeks. The notable change from the above is that the “chief law enforcement officer” no longer has to provide signed approval. The chief law enforcement officer now must only be notified – so you will still have to forward documentation to the officer, but the signed approval will no longer be required.
What benefits come with a gun trust?
A gun trust comes with many benefits. Until the process change discussed immediately above goes into effect on July 13, 2016, a gun trust can serve as a substitute for providing fingerprints and photographs, as well as attaining signed approval from the chief law enforcement officer. This saves both time and money. However, after July 13, 2016 each “responsible person” on a gun trust will have to submit fingerprints and photographs as part of a background check. Each “responsible person” on the gun trust will also have to send specific application documents to the chief law enforcement officer in his/her locality for notification, but not signed approval.
The main benefits of a gun trust come after a NFA firearm has been acquired. One major benefit of a gun trust is legal use and possession of a NFA firearm by multiple persons. Assume that your spouse owns a NFA firearm, such as a silencer/suppressor. If the silencer is titled only in your spouse’s name and is placed in a locked gun safe that you have access to, then you might have “constructive possession” of the silencer. If you have constructive possession, you may be violating federal law without even realizing it. A gun trust is a simple way to fix this. If you are added to the gun trust as a “trustee” (or a “responsible person” as discussed above) then you would be able to legally possess any of the NFA firearms included in the trust. You will have to submit fingerprints and photographs as part of a background check, but there will no longer be the possibility of federal law violation.
The other major benefits of a gun trust are similar to those of any other trust. A gun trust allows for handling and eventually disposition of NFA firearms in a legal, responsible way in the event of the owner’s death or incapacity. Many regular trusts are simply not built to transfer firearms to a new owner. Gun trusts are designed to transfer these types of firearms legally and responsibly, and without putting your friends or family at risk of violating federal law by handling these firearms.
If you currently own or are considering ownership of a NFA firearm, feel free to contact us with assistance in crafting a gun trust.