NFA Gun Trust Lawyer Blog

March 14, 2012

Gun Trusts and Charitable Giving- A Free Update

We have been a member of the NRA Estate Planning Professional Network for several years. In doing so, we have encountered a number of clients who want to leave certain items or a percentage of their firearms to one or more of the NRA Endowment Funds.

Recently we modified our Gun Trusts to include provisions so that each individual can choose if and what they would like to leave to the NRA Endowment Fund of their choice. For those of you who do not have these provisions in your Gun Trust we will be providing a Free Amendment Form that you can compete that allows you to leave any percentage of your trust assets to the NRA before making beneficiary designations, any percentage of your trust assets to the NRA Endowment Fund of your choice if your beneficiaries do not survive the creators of the trust, or a list of specific items that you want to go to the NRA Charity of your choice.

This will make it easier for our clients to bring their Gun Trusts into compliance with their overall charitable giving goals.ing

March 14, 2012

Can I Make a Machine Gun using a NFA Gun Trust?

by David M. Goldman

One of the most common questions or misconceptions is regarding the ability to make a Machine Gun by using a Gun Trust. While you can make a Machine Gun with a Gun Trust, the process or the cost is not what most would consider acceptable. First you are not making a machine gun as you might expect using an ATF Form 1 but you must first start with a legally transferable pre 1986 full auto sear. This is in the 10-15K range and is by itself a Machine Gun. Now that you have a legal machine gun, you can modify almost anything and essentially create a new Machine Gun.

If you purchased a Pre 86 sear, you could change out the pins, add a left hand magazine release, change the trigger, and even build it into 300 blackout if you wanted. Once you were done, you would essentially have a new machine gun but it would be 10-15K more than what the police or military could purchase a current model.

So while you cannot technically “Make A Machine Gun” you can modify a legal transferable machine gun.

March 13, 2012

Gun Trust with Authorized Users in Multiple States or After You Move

by David M. Goldman

A validly created Gun Trust should be valid in another state if you move. While the Gun Trust may not appear valid to the ATF or BATFE, it will be recognized under state law as valid if validly create in another state. When you create a Gun Trust or modify your Gun Trust it is wise to use the minimum requirements of the most strict state so that if you move, or it is used in another state, it will be easy for the ATF to recognize the trust as validly executed.

A Gun Trust that is created in one state, will not allow you or anyone associate with the trust to purchase items in a state where they are illegal to own or purchase. Nor can you take NFA firearms to a state where they are prohibited.

Because we work with a network of lawyers across the United State, our trust incorporate many of the provisions necessary in each state from the beginning. In addition, they can be easily amended to comply with another state’s law if you choose to make such modifications. Further, our trusts are designed to allow for authorized users in different states from where the items may have been purchased or where the Gun Trust was created.

March 12, 2012

FFLGuard – What is it and why should I consider belonging

by David M. Goldman

I have been getting a lot of questions regarding setting up a FFL. While we help many people setup proper FFL’s, once it your FFL is set up you may consider joining FFLGuard as they have many benefits for their members. Here is an overview of their services:

FFLGuard is an innovative legal services program offered by firearms-trained attorneys, The Chiafullo Group, LLP, where the group acts as National Coordinating Counsel to participating clients. The FFLGuard program is designed to provide participating Federal Firearms Licensees with cost-efficient access to legal professionals, including firearms lawyers, subject matter experts and other qualified personnel (some of whom are former ATF employees), to deliver educational training and rapid response services, with a focus on safeguarding the viability of the client’s FFL. FFLGuard’s mission is to promote compliance before, during and after ATF inspection, while providing its clients with the tools to be compliant and the attorneys to back them up.

Inconsistency in the ATF’s interpretation of the law leads to mistakes by the dealer, and increases the chance of a FFL losing their license. According to the National Shooting Sports Foundation, sponsors of the SHOT SHOW each year, a single violation, without warning, is enough to have your FFL revoked. Thus, failure to engage firearms savvy counsel like those from FFLGuard to intervene, assess all inspection activity, interface with ATF inspectors and agents throughout the process, and compare actions by ATF to inspections conducted elsewhere, could possibly result in the revocation of your FFL. The industry demands legal compliance services, and participating in FFLGuard is you best chance at keeping you FFL pristine and your business viable. Please visit the FFLGuard website for additional information. www.fflguard.com

March 8, 2012

Can a Person who has Power of Attorney have Access to NFA Firearms?

by David M. Goldman

An agent acting under a power of attorney for an individual who has rights to own, possess, or use NFA firearms as an individual or in a NFA Firearms Trust, may not take possession, hold, use, or have access to the NFA firearms.

There is only one situation when an agent may do so. After the death of an individual who has rights to or owns NFA Firearms individually or who is current beneficiary of the NFA firearms, the court will appoint a Personal Representative. The court appointed Personal Representative only and not one who is only named in a will, may have access, and transfer the NFA firearms within a reasonable period of time. There is no guidance on what the ATF considers reasonable, but I would suggest starring the process as soon as possible so that the definition of reasonableness is not determined in a case involving you.

The easy way to deal with this for those of you who own Firearms in a NFA trust is to modify to the trust to allow the person who is the agent to be a trustee in the trust. Remember you can add or remove people from a NFA Trust at any time with a simple amendment.

February 23, 2012

NFA Trust Question: I have heard about a one-time $500 Tax For Unlimited Silencer Transfers

by David M. Goldman

First let me say there is no $500 one-time tax for unlimited transfers. There is a $500 yearly fee for a FFL to obtain a Class 3 SOT which allows them unlimited transfers for that year from other dealers for items owned by their FFL. This fee needs to be paid yearly and may be in addition to other fees necessary depending on what the FFL will be doing. If you are interested in setting up a FFL, please Contact Us as we can put you in touch with someone to help you create your FFL and have the systems necessary to not create problems with the BATFE. You can buy cheap products out there that will help create the FFL, but just because you create n FFL does not mean it will be done correctly and you will understand what your duties and responsibilities. Our package helps you protect yourself from unintentional violations.

In regards to personal ownership, it is unfortunate but you, your company, or your trust will need to pay $200 for each silencer you purchase.

February 23, 2012

How Many Copies of My Gun Trust Should I Have Notarized

by David M. Goldman

We often get calls from clients asking how many original trusts should they have or sign. Our instructions state that a copy of the trust is the same as an original. Using this logic, it would seem clear that there is no benefit to having multiple original copies of your Gun Trust. In fact, it could create problem to have multiple originals because each copy that is separately executed is technically a separate trust and amendments to one Gun Trust would not create changes to the other Gun Trusts. It could be difficult to determine which Gun Trust owns an asset and if amendments were made to that Gun Trust or not.

I think you can see that not only is it not necessary to execute multiple copies but it could cause problems and create situations where you or other family members or friends are in violation of the law.

So Remember Sign One, make many copies.

February 20, 2012

Teaching Children to Shoot with Suppressors

by David M. Goldman

There are many benefits to shooting with a suppressor. One common benefit becomes apparent when teaching children to shoot. This image, from the NFATCA, shows a young child learning to shoot with a suppressor. The reduced noise and recoil make it an ideal way to teach children or new shooter how to shot without having to deal with the typical issues that arise from the noise and recoil that are traditionally associated with shooting.

February 20, 2012

North Carolina Gun Trust Lawyer and Firearms Permits

by David M. Goldman

Some of our clients in North Carolina regularly ask about pistol permits and trusts. In response to this, we asked a North Carolina Gun Trust Lawyer ® to explain how the North Carolina Pistol Permit (Click for a Sample Permit) works and what is prohibited. Here is his response:

North Carolina G.S. Section 14-402 requires that any person obtaining a pistol by purchase or other transfer must first get a permit from the sheriff in his county of residence. The sheriff conducts a criminal background check to make sure the receipt of the pistol would not violate state or federal law. Trustees of NFA trusts are not exempt from this requirement, so for any handguns transferred to or purchased by a gun trust a permit must first be obtained. Section 14-403 states that a permit shall be issued to “any person, firm or corporation,” which is broad enough to cover trustees. Thus, if the trustee passes the background check, there shouldn’t be a problem in getting the permit.

§ 14‑402. Sale of certain weapons without permit forbidden. (a) It is unlawful for any person, firm, or corporation in this State to sell, give away, or transfer, or to purchase or receive, at any place within this State from any other place within or without the State any pistol unless: (i) a license or permit is first obtained under this Article by the purchaser or receiver from the sheriff of the county in which the purchaser or receiver resides; or (ii) a valid North Carolina concealed handgun permit is held under Article 54B of this Chapter by the purchaser or receiver who must be a resident of the State at the time of the purchase.

February 9, 2012

Is it necessary to have a FFL to purchase Title II Firearms or so called Class III Firearms?

by David M. Goldman

NO. While a FFL with a Class III SOT is licensed to purchase and sell TItle II firearms, you as an individual, through a Gun Trust – Available at Gun Trust Lawyers®, or as a business entity do not have to have a FFL(in most states). In the past some states like Missouri required a FFL or C&R license to purchase Title II firearms. Late last year Missouri changed the law and a FFL is not required. We are not aware of any other states that current have this requirement.

The Gun Trust is a specific trust created by David Goldman in 2008 and is only available through Gun Trust Lawyers®. While others may use the words Gun Trust, unless it contains out copyright, it is not our trust. To make sure your documents cover all of the NFA issues, check to see if they are copyrighted by David Goldman. If you would like to find out about becoming a Gun Trust Lawyer® please Contact Us.
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