Articles Posted in FAQ’s

atf-logo.jpgATF hires 9 new examiners. Last week, the NFATCA posted an article that the DOJ lifted the hiring ban for the BATFE (Bureau of Alcohol, Tobacco, Firearms and Explosives) and the ATF hired 9 new examiners.

This should significantly speed up the approval process for the purchase or manufacture of firearms restricted by the National Firearms Act. The new staff at the ATF who examine the requests for transfer ( ATF Form 4) and the requests to manufacture (ATF Form 1) should be around 30 which is almost triple the number just a few months ago when expected approval times were in excess of 6 months. We do not know if this will bring times down to 2-3 months but it seems reasonable.

A Gun Trust should be designed to hold all firearms including those restricted by the NFA. All of our Gun Trusts are designed for all of your firearms. As an owner of all types of guns, I designed this trust to deal with issues from a revolver, to a Glock pistol, and even NFA firearms like silencers and machine guns.

What most people do not realize is that many of the same issues regarding transfer upon death or incapacity exist for regular firearms as well as those sold by Class 3 SOT dealers. It is for this reason that I would suggest putting all of your Guns in one of our NFA Gun Trusts.

The real issue is that while we can pick beneficiaries while we are alive, we do not know who will survive us or anything about them on the date of our death.

Aliens who are legally in the United States can purchase NFA firearms as long as they are not a prohibited person. When doing so they often have confusion over how to fill out a 5330.20 when it asks if they are a non-immigrant Alien in question 5. The following definition may help answer the question in your particular circumstances.

Under 8 USCS § 1101 a non-immigrant alien is defined as “an alien having a residence in a foreign country which he has no intention of abandoning who is coming temporarily to the United States to perform temporary services or labor, if unemployed persons capable of performing such service or labor cannot be found in this country.” Rowland v. Marshall, 650 F.2d 28, 29 (4th Cir. Va. 1981)

Today we received another copy of a Gun Store Generic NFA Trust that was provided to a customer of the shop. Not only was it a generic trust and did nothing to advise or protect the client from issues regarding the transfer, ownership, possession or use of TItle II firearms (sold by Class 3 dealers) but the trust itself was invalid as it did not comply with the requirements to create a valid trust in the State. While it may have been a valid trust in another state, each state has its own requirements for creating a valid trust. These requirements change and a trust that may have been valid a few years ago may not be valid under the current laws of the state. It is important to make sure your trust complies with the state’s requirements for creation of a valid trust. What is disturbing is that ATF approved transfers to this invalid trust.

Remember just because ATF approves a transfer, the agency is not stating that your trust is valid nor that you are legally able to be in possession of the firearms. If you have a free trust or a gun shop trust it is important to have it reviewed for legality as well as compliance with the ATF to make sure your document is valid and that your document does not instruct you or others to break the law in regards to regular firearms or those restricted by the NFA.

One of the benefits of a gun trust is that it can be created by a Gun Trust Lawyer® to last throughout your life or in some cases can be designed to last for generations. Trusts are subject to the Rule Against perpetuity (RAP) which may limit how long the trust can last.

The common law RAP was designed to keep people from controlling from their grave. Today the modern trend it to extend or eliminate this restriction and many states like Alaska, Idaho, New Jersey, Pennsylvania, Kentucky, and South Dakota have abolished the RAP by statutes.

In addition, 26 States (Alabama, Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Florida, Georgia, Hawaii, Indiana, Kansas, Massachusetts, Minnesota, Montana, Nebraska, Nevada, New Jersey, New Mexico, North Carolina, North Dakota, Oregon, South Carolina, South Dakota, Tennessee, Utah, Virginia, Washington, West Virginia), the District of Columbia, and the U.S. Virgin Islands, and is currently under consideration in New York) have enacted the Uniform Statutory Rule Against perpetuity which extends the time your trust can control from 21 years after the death of a life in being at the time it was created to 90 years of creation if it actually vests.

atf-logo.jpgThe ATF told attendees at the NSSF Import/Export conference that they had hired 12 temporary research assistants and a supervisor to review Form 4 and Form 1 applications for mistakes before the examiner gets them. (Reported by Joshua Prince at the Prince Law Firm a PA Gun Trust Attorney)

Back in April the backlog on Form 1 and Form 4 transfers was around 43000. The additional staff has almost doubled the number of transfers per month that the agency can handle. The ATF is also asking Congress to use part of the revenue generated to help update their antiquated systems as currently the taxes collected from the Form 4 and Form 1 applications is deposited into the Treasury’s account where the ATF has no access.

Apparently if a FFL submits a Form 1 or Form 4, their applications are put in a special folder for special processing because the background of the FFL has already been checked.

St.johns_sheriff.jpgRecently I was interviewed by Sheldon Gardner of the St. Augustine Record regarding an article about the sheriff deciding not to sign Form 4’s for TItle II transfers: Want to buy a silencer, sawed-off shotgun or explosives? Sheriff will no longer help.

While sheriffs all over the country are refusing to provide the CLEO sign off required for individual ownership of Title II firearms using ATF Form 4‘s and ATF Form 1‘s, the St. Johns Sheriff is one of the few who does not appear to be trying to stop ownership. The Sheriff’s office is recommending using a NFA Gun Trust. Sgt. Chuck Mulligan stated that “In no way shape or form is the sheriff stopping them or hindering them from buying these items.”

As Gun Trust Lawyers®, we have provided many residents of St. Johns count and residents of almost every state Gun Trusts to help them protect their privacy, avoid the CLEO and fingerprint requirements, and help manage their NFA and regular firearms during their life and upon their passing. Many police officers in these areas have also used our NFA Gun Trusts to acquire Title II firearms for personal and work related use.

WHAT IS AN NFA GUN TRUST?

NFA firearms (also called NFA weapons) are certain guns and accessories regulated by the National Firearms Act. They are sometimes incorrectly called “Class 3 weapons.” The confusion over the Class 3 terms is related to the licence that is required for a dealer to possess to sell Title II Firearms. NFA firearms include all fully automatic and select fire weapons, short-barreled rifles and shotguns and sound suppressors (silencers). NFA firearms include things that you might not expect.

Example: Remember the Hi-Standard .22 Derringer It is an ordinary “garden variety” pistol. Pair it with a wallet holster and it becomes an NFA weapon. Many collectibles, including pistols with detachable shoulder stocks, such as the Artillery Luger and the “Broomhandle” Mauser are also regulated by the National Firearms Act.

Suppose that your father brought home a “deactivated” machine gun from World War II? Even though these “Deactivated War Trophies” are welded up and are incapable of firing, they are still NFA weapons.

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You can lawfully own NFA firearms, as long as they are permitted under state law. You have to register them with the Bureau of Alcohol, Tobacco, Firearms and Explosives (“BATFE”) and pay a $200 tax on each one. Unless you acquire them through a trust or other entity, you have to obtain the consent of your chief of police. If you create a special type of trust, no local approval is required. These trusts have other significant advantages as well.

An NFA Gun Trust, sometimes called a “Gun Trust” or a “Class 3 Trust” is a type of revocable trust that you create specifically to acquire NFA weapons and to hold your other firearms. It differs substantially from an “ordinary” revocable trust.

An NFA Gun Trust makes it easier and more private to transfer not only NFA firearms, but any guns, to your family members if you die or become disabled. Assets in a trust pass directly to your beneficiaries outside of the probate system. There is no public record of what you own.

An NFA Gun trust can be an irrevocable or revocable, but an “ordinary” estate planning trusts should not be used to acquire and hold NFA firearms. NFA trusts must have special provisions that deal with firearms.

Example: You want your twelve-year-old child to someday inherit your gun collection, including NFA weapons. An NFA trust provides a way to lawfully store them until your child is old enough to have them transferred to him or her.

We have lawyers in every state that we work with who have modified our trusts for your state’s specific law. The local attorneys deal with state trust and firearms issues and we are here to support you with the federal issues and the NFA.

Our NFA trusts contain language which deals with unique provisions of each state’s law. In addition to the Gun Trust documents, we provide you with detailed, plain English instructions showing you how to fund the trust, acquire NFA weapons as a trustee and administer the trust.

WHY DO I NEED AN NFA TRUST?

No Signature Required

In order for an individual to lawfully acquire an NFA weapon, his or her CLEO – police chief or first selectman must sign a form called a “BATFE Form 4.” Many CLEO’s are reluctant, or refuse, to sign the form either for political reasons or concern about potential liability. If your chief refuses to sign, and you do not have an NFA trust, you will not be allowed to purchase any NFA weapons.
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A Class 3 license is a license that a dealer obtains to sell Title II Firearms. Many individuals incorrectly confuse the terms Class 3 and Title II. We even see some lawyers making the same mistake. Class 3 SOT is a license to sell. Title II is classification of firearm that a Class 3 SOT may sell.

Title II firearms include silencers, short barrel rifles or shotguns, machine guns, AOWs and destructive devices.

So the answer is no! You do not need a Class 3 license to buy a silencer or other Title II firearm unless you are a dealer and wanting to purchase them for resale. If your documents do not use the correct terms, the people who wrote them may not understand the NFA, ATF and issues relating to the purchase, possession, transfer, and use of Title II firearms.

We often get requests for referrals and while we keep the information on our clients confidential we recently had a client send us and email which they gave us permission to publish. Andrew originally purchase a trust from a local attorney because of a recommendation based upon price and it was not until months later that he found out about gun trusts and how a gun trust is very different from a regular trust.

Often times people will ask me, “How much money should I spend on a gun for self-defense?”. I usually respond by asking, “How much is your life worth?”. The implication is that one would typically want a good insurance policy if they are insuring something of great value & should not cut corners in an effort to save a few bucks. I should have applied the same principle to setting up my NFA Gun Trust.

I initially went with another law firm to draft my Trust because the price was very cheap & because the lawyer represented a known SOT/Class 3 dealer. The first Trust that was drafted for me was nothing more than a standard Trust. It was 3 pages long including the cover sheet & did not mention the NFA, ATF, Form 1, Form 4, Form 5, Form 20 or even that the items to be held by the Trust should not be accessible to “prohibited persons” or minors. I e-mailed Mr. Goldman of Law Office of David M. Goldman PLLC to inquire about having a true NFA Gun Trust drafted.

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