A gun trust is similar to other estate trusts set up to protect assets and to smooth the transfer of property upon death. The grantor establishes a gun trust to hold the title of firearms. Gun trusts are legal instruments essential to estate planning for many enthusiasts of NFA-regulated firearms. When a person buys, possesses, or uses an NFA weapon, they must register it with the Bureau of Alcohol, Tobacco, Firearms, and Explosives, or ATF, using its serial number. A gun trust allows individuals the legal right to hold or use the weapons without registration. For more information or to get help in drafting a gun trust, call 480-320-2310 and schedule a consultation with one of the knowledgeable gun trust lawyers at Harrison Law, PLLC.
What Is an NFA Gun Trust?
Gun trusts are living trusts and an alternative to individual ownership of NFA-regulated firearms. The grantor holds legal documentation such that the gun trust holds legal ownership of the firearms and any other NFA-regulated accessories. A gun trust may promote responsible ownership and handling of federally regulated weapons. This specific type of trust also allows for the formal transfer of NFA weapons upon the grantor’s death to an heir of their choosing. Firearm laws still apply, and the heir must undergo exact federal requirements, such as a background check, before taking ownership of the items.
When a person purchases firearms using a trust, the gun trust is the legal owner of the weapons, and the individual is a trustee who can legally possess, use, or transfer possession of the firearms. The trustee will also register the gun or accessory with the ATF in the name of the gun trust. According to the ATF website, some examples of NFA-regulated weapons include:
- Machine guns
- Silencers
- Short barrel rifles
- Short barrel shotguns
- Short barrel modified rifles
- Destructive devices
- Any other weapon or AOW
The National Firearms Act
The Office of the Inspector General explains that the United States Congress enacted the National Firearms Act in 1934 to diminish and prohibit illegal transactions involving certain weapons. The National Firearms Act, also called Title II of the Federal Firearms Laws, is the result of Congress discovering that modern firearms and their accessories posed significant risks to citizens when gang members or other criminals possessed them. The legislation imposes taxes on individuals and entities manufacturing, selling, or transferring the weapons to others.
The NFA further requires registration of all NFA-regulated guns and other items with the ATF. Any person possessing, using, or turning over possession of the weapons must register them or face the possibility of criminal charges. The registration of guns every time they change hands can be time-consuming and costly, a disincentive that has led to the creation of the NFA Trust. When individuals establish and operate within an NFA trust, also called a gun trust, firearm ownership does not change, and parties to the trust save time and money when they transfer possession and usage rights to others.
What Are the Benefits of Gun Trusts?
Gun trusts are similar to other trusts in that they confer certain legal rights from one person or entity to another. Federal laws prohibit people with federal firearms licenses from allowing others to use or store the weapons. Simply allowing a close friend or family member to shoot the gun could result in arrest, conviction, and a felony on their permanent criminal record. After the drafting and execution of a gun trust, the legal instrument will dictate which individuals can legally access the weapons and under which conditions. A gun trust can therefore help to protect families and assets, as well as dictating ownership upon the trustee’s death. A gun trust may also help the heirs avoid probate. Other benefits of gun trusts include:
- Gun trusts can give more than one person the legal right to possess or use the weapon.
- Upon a grantor’s death, the gun trust will hold ownership of weapons and endows heirs with the same benefits the grantor enjoyed.
- The trust will guide the estate executor and can help to ensure that the transfer of property is carried out in compliance with all state and federal regulations.
- The legal instruments allow grantors to transfer possession of federally regulated firearms and accessories to beneficiaries without paying a $200 transfer tax.
Drafting gun trusts in compliance with Arizona estate planning requirements and federal gun laws can often require extensive research. An experienced gun trust lawyer at Harrison Law, PLLC will draw on expertise in estate planning as well as firearm laws in order to help clients ensure their legal rights remain protected.
The Different Types of Gun Trusts
There are two primary types of gun trusts to choose from, and understanding the differences is essential to ensure a person’s wishes are followed.
Revocable Gun Trusts
Revocable gun trusts include National Firearms Act language and are the most common type of gun trusts. Many grantors prefer revocable gun trusts because the grantor can make modifications to the trust if they choose during their lifetime, adding amendments to the legal instrument and changing the co-trustees or beneficiaries, should they decide to in the future.
Irrevocable Gun Trusts
Irrevocable gun trusts also include specific language relating to the National Firearms Act and provide trustees the legal right to possess and use firearms. However, the grantor cannot make any modifications after the execution of the legal instrument.
Gun trusts have grown in popularity in recent years, and so have do-it-yourself options for drafting them. However, inexperience could jeopardize the legality of the instruments, as failing to include vital verbiage or inputting inaccurate data can invalidate them. For these reasons, many firearms enthusiasts who decide to pursue the establishment of a gun trust prefer to work with a seasoned gun trust lawyer to facilitate the drafting and execution of the legal documents.
Consult with an Experienced Gun Trust Lawyer
Gun trusts can provide many benefits and protections for grantors, trustees, successors, and heirs. Understanding gun trusts and how they work is essential for those who wish to include gun trusts in their estate planning. Setting up these specific types of trusts can help potentially avoid unnecessary risks, facilitate gun law compliance, and allow for the straightforward transfer of firearms and other NFA-regulated weapons. Schedule a consultation with a knowledgeable gun trust lawyer at Harrison Law, PLLC, at 480-320-2310 today and get answers to your questions regarding gun trusts.
© 2023 Matthew W. Harrison and Harrison Law, PLLC All Rights Reserved
This website and article have been prepared by Harrison Law, PLLC for informational purposes only and does not, and is not intended to, constitute legal or financial advice. The information is not provided in the course of an attorney-client relationship and is not intended to substitute for legal advice from an attorney licensed in your jurisdiction.
