Articles Posted in FAQ’s

If an estate includes registered NFA firearms, the executor is responsible for maintaining custody and control of the NFA firearms.  The executor must also arrange for transfers of the items. The executor should transfer the items prior to the close of probate.

WARNING:  The Firearms may not be transferred to another party even a Federal firearms licensee, for consignment or safekeeping but can assist the executor by acting as a broker.

If there are unregistered NFA firearms in the estate, the firearms are contraband and cannot be registered by the estate or any person or entity. The executor should contact their local ATF office to arrange for the abandonment of the unregistered firearms.

If you have class 3 firearms and someone other than you knows the combination to your gun safe you could both go to jail.  This is a concept called constructive possession.  If you have given someone the ability to access your class 3 firearms, you have violated the NFA.  If someone has the ability to access your class 3 firearms, they have violated the NFA.

The best way to solve this problem is by creating a business entity or trust that allows the person to be in possession of the items.  If you already own the class 3 items you will have to do another transfer from you personally to the NFA trust.

This is one of the many issues that should be identified and discussed prior to creating an NFA firearms trust.

When manufacturing a class 3 firearm that is restricted by the NFA it is important to follow the guidelines found in the ATF Publication 5300.4 – section 479.102  ” How must firearms be identified?”

Generally, any gun manufactured, imported, or made on and after January, 2002 must have the manufacturers information engraved, cast, stamped by impression,  at a minimum depth of .003″ with a height no smaller than 1/16″ on the frame, receiver, or barrel.

The required information on an SBR is the model (if such one exists), caliber or gauge, and the manufacturer’s name (or recognized abbreviation).   Also for a domestically made (SBR) the city and state (or recognized abbreviation), where you as the manufacturer made the firearm. 

If you are one of the many people who have used Quicken to create a Revocable Trust for the purchase of Class 3 Firearms who is concerned about having created an invalid trust and having violated the National Firearms act, we can review your trust to see if the trust is valid and make suggestions as to what issues you may be concerned with.

At this time we can only review Florida Trusts for validity, but if you want a trust from a different state reviewed let us know and we will find you an attorney in your state to help with your NFA Firearms / Gun Trust     Contact a Gun Trust Attorney for more information.

This is a personal question that can  only be determined after evaluating your particular circumstances.  Some of the questions that must be answered include, whether you are married, if so, does your spouse have access to the weapons, do you want your spouse to have access?  Is there someone else who you shoot with?  Does anyone know the combination to your gun safe?

To determine the correct people to name as co-trustee’s in your NFA Firearms / Gun Trust Contact a Gun Trust Attorney.

Yes a settlor is required for each NFA trust.  The Settlor is the person who is contributing the property to the trust.  They receive the benefit of the trust while there are items in it.

They may not manage or use the property as this is a job for the Trustee.  The Settlor may be a trustee also.

If you need a Gun Trust reviewed or to create one, Contact a Gun Trust Lawyer®

The National Firearms Act defines what is criminal conduct.  The prohibited activities include but are not limited to:

  1. Engaging in the business of firearms (manufacturing, importing, selling) without a license and tax;
  2. Receiving a firearms in violation of the act;
  3. Possessing a firearms in violation of the NFA;
  4. Receiving or possessing a firearms not registered to yourself in violation of the NFA;
  5. Transferring or making a firearm in violation of the NFA; or
  6. Removing, changing, or obliterating a serial number of an NFA firearm.

Many individuals are under the mistaken belief that they can allow someone to shoot their NFA firearm when in their possession.  Although a dealer license allows this, the individual license does not and both individuals would be in violation of the NFA and subject to the criminal penalties as such.

If you would like someone else to be able to use or be in possession of your NFA firearms, you should consider a NFA gun trust or business entity to purchase or hold the item in.  For more information Contact a NFA Lawyer.

Violations of the NFA are punishable by 10 years in prison, forfeiture of all devices or firearms in violation, and the individuals right to own or possess additional firearms in the future.  In addition, there is a penalty of $10,000 for each of certain violations.

In addition, a willful attempt to evade or defeat a tax imposed by the National Firearms Act is also a felony which is punishable by up to 5 years in Jail and a $100,000 fine under the tax evasion statutes.  This penalty could be increased to $250,000 for individuals and $500,000 for corporations.

This means you could be looking at a maximum of 15 years in Jail and $510,000 in penalties for a violation.   Many violations can be avoided by proper ownership and knowing who can be in possession and use the Title 2 firearms which are restricted under the NFA.

Often I am asked if there are annual fees associated with a NFA Firearms trust.  In most states, there is no registration of a Firearms trust and because it is revocable there are no tax returns or governmental fees associated with the yearly maintenance of the NFA trust.  This is one of the major benefits of using a NFA trust over a Corporation or LLC to purchase class III firearms.

NFA TRUST FORMATION is a process of creating a Trust for the specific purpose of Purchasing Class III firearms and  transferring Class III firearms.  A NFA TRUST is specifically created to comply with the TItle II requirements in dealing with Class 3 firearms.  Class 3 Firearms are items regulated by the National Firearms Act ( NFA) and are typically sound suppressors, silencers, short-barreled shotguns or shotguns, and machine guns.

Most NFA Trusts are formed to bypass a CLEO signature, but there are many additional advantages to purchasing class 3 firearms with a NFA Firearms Trust.  These include dealing with issues of constructive possession, transfer of the assets upon death, and avoiding many of the improper purchases and transfers that contain criminal penalties.

NFA trusts are private, no one knows about them unless you disclose the information
Multiple people can be in possession or use the NFA class 3 firearms.
You can protect your spouse from potential criminal liability that is associated with individual ownership.
No CLEO sign off is required, no fingerprints
The time to acquire items is significantly reduced

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