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  1. Gun Trusts or NFA (Nation Firearms Act) Trusts are primary used to purchase firearms regulated by the National Firearms Act. These firearms include fully automatic weapons, short-barreled rifles and shotguns, and sound suppressors (“silencers”).  These firearms are commonly referred to as NFA firearms, Title II weapons, or incorrectly as “Class 3” weapons.
  2. “Class 3” simply refers to a rate of taxation ($500) for a special occupational tax that is assessed when the weapon is transferred to a third party. You do not need to pay an additional transfer tax when transferring a currently owned NRA firearm into a Gun Trust.
  3. Many so-called “experts” suggest that it is illegal for a person to use a NFA firearm in any circumstance if they are not the owner of that firearm. That is not always true.  Permissive users many use NFA firearms while in the “presence” of the owner.  The ATF (Bureau of Alcohol, Tobacco, Firearms, and Explosives) defines “presence” as being within the sight of the owner.
  4. Historically, Gun Trusts could be used to avoid the CLEO (Chief Law Enforcement Officer) sign-off requirement when buying a NFA firearm. In the past, anti-NFA CLEOs could arbitrary bar law abiding Americans from owning NFA firearms by simply refusing to process their background checks.  On July 12, 2016, ATF Rule 41 took effect.  Rule 41 eliminated the CLEO sign-off requirement and substituted it with the simple requirement that applicants submit a copy of all pertinent documents to their CLEO.  CLEO generally means to your county sheriff.
  5. When researching gun trusts you often hear people refer to a mysterious “Form 4.” A “Form 4” is formally called an ATF Form 5320.4.  A Form 4 is an application for the transfer and registration of a NFA firearm.  Simply put, you will have to fill one out when you buy a NFA firearm.  An ATF Form 1 is used when making a NFA firearm.
  6. A Gun Trust provides certain benefits that other ownership entities such as a corporation or LLC do not. These benefits include no filing fees or annual fees, no filing with government agencies other than when applying for a BATFE tax stamp, more ease when modifying ownership documents, and increased privacy (trust are not recorded in public records).
  7. It is permissible and advisable to keep non-NFA firearms in a Gun Trust.
  8. All trustees have the ability to possess and use the weapons in the trust. Trustees can be added or removed at any time, and there is no limit to the number of trustees.
  9. If you are the settlor (creator) of a Gun Trust, you may revoke the trust at any time as long as the terms of the trust allow it. The bottom line is that you may maintain ultimate control of your firearms during your lifetime if you wish to do so.
  10. Once you set up your Gun Trust, firearms in that Gun Trust pass privately to the beneficiaries of your trust outside the probate court according to the terms and conditions of the trust.

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We at Campione Law, P.A. look forward to helping you develop your individualized Gun Trust tailored to your unique needs. You should be cautious about using a form from the internet to create a Gun Trust. Many of these pseudo legal website that offer such forms do not take into consideration what state you are in much less your individual needs. Your effort to save a few bucks in the short run could cost you dearly down the road, not to mention the potential mess you could leave your heirs at your passing. We pride ourselves on our individualized approach. We will be here to answer any questions you may have and assist you along the way. Please consult a licensed attorney before acting on any of the information contained in this article.

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Other Areas Of Practice

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Campione Law, P.A

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