The National Firearms Act, or NFA, created a restriction on the ownership of certain types of weapons, specifically those considered to be Title II weapons. Examples of Title II weapons include machine guns, suppressors, short-barreled rifles, short-barreled shotguns, grenades, etc. Owners of such weapons must register their weapon with the Bureau of Alcohol, Tobacco, Fire Arms, and Explosives (BATFE), pay a required tax, and be approved for ownership. Unfortunately, after all the trouble people take to acquire these weapons, they are unable to pass such weapons on as gifts or to heirs or beneficiaries after their death; instead, ownership of the weapon will revert to the state. However, many people do not realize this and inadvertently break the law when taking ownership of a deceased family member’s Title II weapons.
One way people can acquire these weapons for a longer timeframe or for their beneficiaries and heirs is by setting up an NFA Trust. This type of Trust titles the weapon into the Trust; therefore, even if the original owner passes away, the current Trustees of the Trust can still legally use and possess the weapon. It provides a legal way to pass on these restricted weapons.
An NFA Trust can have as many Trustees as desired; however, every Trustee must not be a “prohibited person” by law (including felons, wanted fugitives, certain aliens, those addicted to drugs, etc.) and must be of legal age. When a Trust attempts to purchase a Title II weapon, the entire Trust must be provided to BAFTE to review. Our office can help you understand the process of providing the Trust for review.
Each Title II weapon must be approved by BAFTE to be put into your NFA Trust, which can take quite a bit of time. However, this is one proper way to ensure that the person of your choice can take possession of your Title II weapons in case you pass unexpectedly. This will prevent any of your family from breaking the law through ignorance by using or possessing these restricted weapons without proper ownership.
The most recent Executive Order affecting NFA Trusts went into effect on July 13, 2016. The biggest change is that now, every “Responsible Person” (including Grantors and Trustees) must submit paperwork when applying to the BAFTE for a Title II stamp, as well as the new requirement of proving CLEO (“Chief Law Enforcement Officer”) notification.
However, an NFA Trust also allows you to designate a beneficiary who is under the legal age of gun ownership. However, it is important to note that a person under the age of 18 and some cases 21 cannot take possession of the weapons in the trust until they are of legal age to do so.
In addition, you are able to put other weapons into your Trust, including regular rifles, pistols, etc. This will help clarify how you would like your weapons to be taken care of after you are no longer able to do so.
If you are interested in learning more about NFA Trusts or creating one, please contact The Carroll Law Firm at 623-551-9366!