November 2012 Archives

November 24, 2012

ATF says 07 Manufactures must comply with ITAR

We have been telling 07 Manufactures for almost a year that they need to comply with ITAR even if they do not export anything. Now the according to Joshua Prince with the Prince Law Firm, In the November 2012 newsletter ATF has declared that all 07's must register with the DDTC unless the DDTC specifically exempts them. The penalties are huge and include 20 years in prison and 1 million in fines among other civil penalties per violation.

So what ever your reason for not registering even if ATF previously told you not to, you need to register and register soon. If you need help with this please Contact Us and we will be happy to get you in touch with someone who can help you do this correctly.

November 15, 2012

When is a Gun Trust not a Gun Trust?

Recently we have begun to see many "Gun Trusts" that are nothing more than a traditional revocable trust with a few provisions that mention firearms or NFA firearms. As the creator of the NFA Gun Trust, we feel that we are entitled to define what is and what is not a Gun Trust. Here are a few of the more common issues we see with regular or other so-called "Gun Trusts":


  • A gun trust should be a document which deals with regular as well as NFA firearms.

  • It should not contain language that instructs people to violate the law if they follow the instructions contained in the trust and should not allow for someone who is a prohibited person to become or remain an authorized user of the firearms.

  • It should deal with incapacity and death in a manner designed for firearms.

  • A real Gun Trust or NFA Gun Trust should be designed to protect individuals, their families and their friends from issues of constructive possession and guide them on the legal ways to purchase, use, transfer, and distribute all firearms.

  • In addition, a Gun Trust should not require the sale of firearms to pay income should you become incapacitated - unless necessary.


Perhaps the best way to see if you have a real "Gun Trust" or not is to look for the "Gun Trust Lawyer®" registered trademark or that it was copyrighted by David Goldman. If you have a gun trust that does not contain these markings, and you would like it reviewed free of charge for compliance with federal issues, Contact Us and we would be happy to review the document with you.

November 8, 2012

Should I put my regular firearms in a NFA Trust or Gun Trust?

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.

We do not know where they will live; in some states regular firearms are highly restricted or prohibited by law. Will some or all of our guns will be permitted in the state where each beneficiary will live at the time of our death?

The legal status of our beneficiaries. Have our kids or friends done something silly that we do not know about that might have caused the beneficiaries to lose their rights to own, possess, or use a gun. Are they involved with drugs in a state where it is legal? While legal in some states, it is still a federal crime and would make a person using illegal drugs (at the federal or state level) a prohibited person. Another issue might involve being charged with an act of domestic violence or child abuse even if not ultimately convicted of the charge. The Lautenberg amendment is a federal statute that says that certain actions by you or your attorney on your behalf that are associated with charges which are classified as domestic violence or child abuse can cause a permanent loss of your firearms rights.

Most importantly, as much as we would like to believe that our beneficiaries will be the right age and have the right mental state when we die, we will not be there to make the decision. Our Gun Trust takes all of this into consideration and allows the successor Trustee to look at the age, make sure they are old enough and of the right frame of mind. Other trusts only require that someone is not determined to be legally incompetent. With firearms this is not enough, someone can be legally sane, but not the person you would want to hand a gun. People change over time, and it is not always for the better.

Our Gun Trust allows all of these issues to be considered and then a decision can be made or the decision can be to wait an addition period of time and reevaluate the beneficiary.