FAQ's

August 20, 2009

ATF Form 1 (5320.1)for SBR/SBS with multiple barrel lengths

When submitting a Form 1 to the ATF for a SBR or SBS with multiple barrel lengths, the ATF will no longer accept a Form 1 with multiple barrel lengths. It is recommended that you submit the ATF Form 1 (5320.1) with a single barrel length for approval. Follow this link for more information on how to fill out an ATF form1 (5320.1).

If you have additional calibers you want to list you should attach additional configurations in a letter attached to your Form 1 stating the caliber, barrel length, and overall length as related to the firearm listed on the Form 1.

Previously ATF accepted them by being listed in 4h on the Form 1 but no longer accepts this.

August 18, 2009

How do I transfer firearms that I now own into my new NFA Gun Trust?

by David M. Goldman

If you have regular firearms and your state allows you to transfer them to an individual without going through a dealer, you can fill out the assignment form that we supply with the NFA firearms trust. On the other hand if your state requires other steps to give or sell a firearm to an individual you will still have to comply with your state’s laws when transferring the regular firearms into the NFA Trust.

With Title II firearms you have to deal with the same issues as above + the requirements under the NFA. If you are purchasing from :

1) an individual within your state, you can use the form 4 and no dealer is required on the federal level- unless your state would require a dealer to be involved with a regular firearm of the same type.

August 17, 2009

How to Fill out an ATF 5320.1 Form 1 for a NFA Trust

by David M. Goldman

When filling out a Form 1 for the first time with your NFA trust it can be confusing. With an ATF Form 4, there is typically a dealer involved or someone who has done it before so there are not as many questions. I have created a page on How to fill out a Form 1 with a link to a 5320.1 Form 1 that you can download and a sample that is filled out that can be used as a guide. The page also includes instructions on what information should be contained in your Form 1.

August 17, 2009

Do trustees of the NFA Gun Trust have to fill out forms, be fingerprinted, or have a background check by the CLEO?

by David M. Goldman

While a trustee needs to sign the Form 4 or Form 1, no additional paperwork is required because a NFA Gun Trust is being used. Other Trustee’s do not need to sign the paperwork, if you are using a properly drafted NFA trust that authorized any Trustee to make the purchase without consent of the other trustees.

This is something that you may want to modify in your trust and should talk with a Gun Trust Lawyer® about.

In addition, the trustees do not have to include fingerprints or go through a background check by the CLEO as is required by an individual. NOTE: Most states and gun stores will run the NICS check on the person who is picking up the weapon, upon approval by the ATF.

August 14, 2009

Must I update the ATF if I modify my NFA firearms Trust or Gun Trust?

by David M. Goldman

According to Mr. Howard, the section chief of the ATF, there is no requirement under the NFA or BATFE to update a modified Trust with the ATF when the people involved are modified. The only time that the ATF must be notified is if one of the Trustees becomes ineligible to be in possession of the items.

A properly drafted NFA trust should notify under which conditions a Trustee should resign, whom they need to notify, and the time constraints required under to avoid having the weapons seized and to avoid risk of jail time and monetary penalties.

To speak with a Gun Trust Lawyer®, Contact Us.

August 13, 2009

Free NFA Trust Form for Class 3, Title II purchases.

by David M. Goldman

Free NFA Trusts from your dealer – are they worth the paper they are written on, or could you face jail time for relying on bad advise from your dealer?

Recently I was contacted by a client who’s gun dealer provides their clients a free Revocable Trust to purchase NFA items. After reviewing the Free NFA Gun Trust Form, I was shocked to discover that there was no way this trust could create a valid trust. A trust by definition must separate beneficial and legal ownership of the assets that are held in the trust. If this is not done, there is no trust. If there is no trust, any transfer to the trust is a violation of the NFA whether or not approved by the ATF. If you are in possession of a NFA firearm and your trust is not valid, you have committed multiple violations of the NFA each of which is subject to a 10 year jail sentence, $250,000 in fines & forfeiture of the firearms.

While some people are interested in only acquiring the firearms, many are interested in protecting their family and friends from illegal purchases, transfers, possession and other activities that would subject them to 10 years in jail and $250,000 penalties associated with each NFA violation for a trust.

August 13, 2009

If the NFA trust “owns” the firearms, who may use them?

by David M. Goldman

Any current Trustee of the NFA trust may use the firearms. A properly drafted NFA trust will have provisions that make a trustee ineligible to serve if they are disqualified for one of the legal reasons a person cannot be in possession of an Title II firearm under the NFA.

August 12, 2009

May I or should I place other firearms / weapons in the NFA trust (rifles, shotguns, pistols, knives)

by David M. Goldman

One of the most common questions regarding the formation of a NFA trust is whether it is a good idea to put other firearms or weapons in the trust with the Title II firearms.

Generally as long as you would want those items to go to the same beneficiaries, there is no problem in putting non NFA firearms or other items with similar concerns in the same trust. Under no circumstances should you place regular assets like your personal bank accounts, stock accounts, or real estate inside a NFA trust or trust that is designed for NFA purposes.

A properly prepared NFA trust will have provisions that make the risk of abuse by a trustee or successor trustee to great. The flexibility that is necessary to deal with the unique issues of firearms ownership, transfer, possession as well as the potential risk of criminal liability make us recommend that only firearms and other related property is in the trust.

August 5, 2009

Constructive Possession: NFA Trusts vs Individual Ownership

by David M. Goldman

The NFA defines who can own a Title II firearm as a natural person, corporation or trust…. When an individual makes application to own a Title II firearm they are the only person who can be in possession or have access to the firearm. This creates a problem for many individuals who are married, have others who know the combination or how to gain access to the items, or want to allow others to use the firearms, even in their presence.

Joshua Prince has written and excellent analysis of the case law surrounding constructive possession and the US v. Turnbough case which stated that the Government may establish constructive possession by demonstrating that the defendant exercised ownership, dominion or control over the premises in which the contraband is concealed. Joshua goes on the state that if a spouse or other person does have the combination to the safe where the NFA firearms are kept it would be virtually impossible for the prosecutor to show that the other individual knowingly has the power to exercise dominion and control over the firearms.

The real problem occurs when another does have access to the items or can exercise dominion and control over the NFA firearm because the prosecutor can then charge that individual with constructive possession. In US v. Turnbough, an illegal firearm was in Turnbough’s home and the court of appeals found that a reasonable jury could have found that he, his live in girlfriend, and her child could conclude that all three parties exercised dominion and control over the gun and the possession could be either sole or joint.

July 27, 2009

Choosing the NRA as the Beneficiary of your NFA Trust

by David M. Goldman

Often individuals do not have a specific beneficiary in mind when they create a Gun Trust. Many of these people do not want their heirs to receive the firearms or do not have heirs and choose to list NRA.

If you are considering listing the NRA as a beneficiary, here is some information on how to list them properly.

501(c)(4) Organizations: