WHAT IS A NFA GUN TRUST?
An NFA Gun Trust is a special kind of revocable living trust that is specifically designed to hold weapons regulated by the National Firearms Act (NFA), usually referred to as NFA weapons, Title II Weapons, or Class 3 weapons. Illegal possession of an NFA weapon is punishable by a maximum of 10 years in prison and a fine of $250,000. Therefore, it is of the utmost importance that you comply with all federal, state, and local laws not only at the time of purchase, but also throughout the period of ownership. The NFA Gun Trust is designed to do exactly that.
At the Harmon Law Office, we can draft NFA Gun Trusts for clients throughout North Carolina. Most of the process can typically be completed by telephone and/or email. Clients near our office in Boone, North Carolina are welcome to make an appointment to come in and sit down with us.
WHAT ABOUT GUN SHOW/SHOP GUN TRUSTS OR QUICKEN WILLMAKER?
It is legal for an individual to draft his or her own legal documents, including NFA Gun Trusts. Within the NFA weapon collecting community, it is very common to hear someone say that it is easy to do your own NFA Gun Trust based off of a form or software like Quicken Willmaker or Legalzoom. This cannot be stressed enough: If you take title to NFA weapons in the name of an invalid trust, you are in illegal possession and could be prsecuted by federal and state authorities. It does not matter if you submitted the trust to BATFE and they approved it. BATFE does not check to make sure that your trust is valid under state law when they approve your transfer.
WHAT ARE THE BENEFITS OF USING AN NFA GUN TRUST?
There are several major benefits to using an NFA Gun Trust to own NFA weapons such as short-barrel shotguns (SBS), Short-barrel rifles (SBR), suppressors (silencers), pre-1986 fully automatic machine guns, and Any Other Weapon (AOW) regulated by the National Firearms Act (NFA):
- No CLEO signature required
- No fingerprints required
- No Photograph required
- Privacy -while you NFA weapons are still registered with BATFE, you need not notify local law enforcement for you acquisitions.
- Built-in estate planning -your trust automatically plans for your descendants inheritance complete with safeguards to prevent illegal possession.
- Peace of mind knowing that you are complying with all federal, state, and local laws.
- No reoccurring costs, unlike a corporation or LLC
- One and done -you can use one NFA Trust to hold your entire collection of NFA weapons
- May avoid application of future “no transfer” legislation to NFA weapons held in trust
NOTE: if you are legally prohibited from purchasing, owning, using, or possessing NFA weapons, you are also prohibited from using an NFA Gun Trust to purchase, own, use, or possess NFA Weapons.