NFA Gun Trust Lawyer Blog

Leonard Elliot's store was raided by the ATF almost 3 years ago.  After a 3 day trial he and his father were found not guilty on all counts.

JPFO has an audio interview with Leonard Elliott about his ordeal To listen to this interview click the following link leonard-elliott.mp3 target=new

ATF Acting Director ATF Michael J. Sullivan released the following statement on the recent Supreme Court decision in District of Columbia et. al. v. Heller: "ATF is pleased with the Supreme Court's ruling recognizing that the Second Amendment protects an individual right to possess firearms, including for private purposes unrelated to militia operations. The court's ruling is in accordance with the text of the Second Amendment, historical practice, and the Attorney General's 2001 guidance on the scope of the Second Amendment, and is consistent with the bureau's understanding of the scope of the Second Amendment. The Bureau also is pleased that the court appropriately made clear that nothing in [the] ruling casts doubt on the constitutionality of 'longstanding prohibitions on the possession of firearms by felons and the mentally ill, or laws forbidding the carrying of firearms in sensitive places such as schools and government buildings, or laws imposing conditions and qualifications on the commercial sale of arms.' In addition, the court appropriately recognized that the 'carrying of dangerous and unusual weapons,' such as machineguns, is not protected by the amendment. The bureau is studying the decision, but expects that it will not affect its continued enforcement of all existing federal firearms laws."

Generally when creating a NFA trust, one must look to the laws of their state and how they affect the right to own a class III firearm.

What happens if you live in New York or any state where some Class III firearms are banned but plan to use and keep them in another state where they are legal?  Can you a resident of a state where the item is banned purchase, store, and use the items in a state where its legal.

According to the ATF,  an individual can purchase an item restricted by the NFA that is not permitted in the state of residence of the trustee, when the trust will be located, and item will be only used and maintained in states where it is legal.

This means a NY resident can purchase a class III firearm in PA when it is under a PA trust and the firearm is kept and used in PA.

What should I do if I am in possession of an Akins Accelerator?

You should immediately remove the spring from the Akins Accelerator. This spring should be mailed (with the certification described below) to the Chief, Firearms Technology Branch, 244 Needy Road, Martinsburg, WV 25405. You should be sure to include your name and address with the spring so that ATF can account for all the devices which have been sold. The following certification should be completed, signed, and returned with the spring.

I, _____________________________________, certify that the enclosed spring was removed from my Akins Accelerator and sent to the Bureau of Alcohol, Tobacco, Firearms and Explosives on __________________(date). I understand that replacing the spring on the Akins Accelerator constitutes a violation of law.
_______________________       _________________________
Signature                                      Date

What should I do if I purchased an Akins Accelerator from the Akins Group but have sold it or otherwise disposed of it?

If purchasers have sold or otherwise disposed of the Akins Accelerator, they should complete the below Transfer certification and return it to Chief, Firearms Technology Branch, 244 Needy Road, Martinsburg, WV 25405. Do not ask the purchaser to return the Akins Accelerator to you; the current possessor should return the spring to ATF at the above address. The possessor should also include the name and address of the person from whom they received the Akins Accelerator, along with the certification regarding the spring, so that ATF may account for all the Akins Accelerators that were sold.

Transfer Certification

I, _____________________________________, certify that I am no longer in possession of the Akins Accelerator that I purchased from the Akins Group. I transferred the Akins Accelerator to _____________________ on _______________________ (date).

What should I do if I have a device that I think may be affected by the ruling?

If you have a device that you think may be affected by the ruling you may send it in to
Chief, Firearms Technology Branch, 244 Needy Road, Martinsburg, WV 25405, and
request a classification.

I got a question from someone to day about what to do if their Class 3 registration papers are lost.  I found the answer on the ATF website under the NFA Handbook in Chapter 3.

Section 3.5 Lost or stolen registration documents. A person possessing a firearm registered as required by the NFA must retain proof of registration, that is, the registration form showing registration of the firearm to the person, which must be made available to ATF upon request.53 If a registrant discovers that a Form 1, 2, 3, 4, 5, 6A, or 10 is stolen, lost or destroyed, the registrant must immediately report the theft, loss, or destruction in writing to the NFA Branch.54 The report must contain the details of the situation. ATF will issue a duplicate copy of the registration document as the circumstances warrant.

If you need to contact a local ATF field office follow this link for the AFT field division contact information.

Some NFA firearms collectors, who are not engaged in any firearms business, have been known to acquire a GCA license to deal in firearms and pay the NFA special tax to acquire NFA firearms for their personal firearms collections. This is not a wise thing to do and violates the National Firearms Act.

Most individual acquire NFA firearms for the following reasons:

(1) to acquire firearms from nonlicensees residing out-of-state;
(2) to circumvent requirements imposed on individuals to provide their fingerprints and photographs in order to receive NFA firearms and law enforcement certifications authorizing their receipt of such firearms;
(3) to purchase and use items that they are not legally able to obtain as an individual; and
(4) to avoid NFA transfer tax on firearms they receive from FFL's/SOT's.

Warning: These transactions violate the NFA and can only lead to trouble for the individual. In these instances, the individual has committed Federal felonies by falsely stating on a license application and special tax return that the collector intends to conduct a firearms business. Any NFA firearms received tax free by the collector are subject to transfer tax and the collector's receipt of the firearms tax free violated the NFA. As held in ATF Ruling 76-22, these transfers are unlawful and the firearms received are subject to seizure and forfeiture.

If you hold NFA restricted firearms that are of a personal use in nature, under a business license, you should consider creating a NFA Firearms Trust to hold the title to these items to avoid being in violation of the National Firearms Act.

There are several type of Class 3 items that are restricted by the National Firearms Act.

Each state can impose additional restrictions on the sale, purchase, and transfer of class 3 firearms in addition to the compliance that is required with the national Firearms Act.

In California you can own the following items that are regulated the the National Firearms Act

Machine Guns 
Any Other Weapon (AOW) (except Pen Guns) *1
Destructive Devices (DD)
Short Barreled Shotguns (SBS)
Short Barreled Rifles (SBR)

In California you cannot own the following NFA restricted items.

Silencers
Pen Guns

*1 AOW's other than Pen Guns are ok as long as they are not an assault weapon.  With the exception of AOW assault weapons that were owned prior to the registrations period are ok.  AOW's are not required to receive a Curio or Relic classification.

Note In California most Class 3 items other than AOW's must be classified as a Curio or Relic  (C&R).

SBS and SBR, that are C&W  as well has AOW's as described above do not require any special state permits.

Permits for Machine guns and DD's are controlled and at the sole discretion of the DOJ and are rarely issued to civilians or anyone who is not involved in the movie industry.

CA's Assault weapons laws apply to assault weapons whether they are C&R or not.  An assault weapon in Ca if meets certain requirements found in the statutes. One of these is  semi automatic center-fire rifle with  the capacity to accept a detachable magazine that has an overall length of less than 30 inches is an AW.  This would mean if you made (through a form 1) a SBR out of an M1 Cabine, it would likely be considered an AW under California law.

Follow this link to find out more about California and NFA restrictions on Class 3 Firearms

There are several type of Class 3 items that are restricted by the National Firearms Act.

Each state can impose additional restrictions on the sale, purchase, and transfer of class 3 firearms in addition to the compliance that is required with the national Firearms Act.

In Arkansas you can own the following items that are regulated the the National Firearms Act

Machine Guns
Silencers
Any Other Weapon (AOW)
Destructive Devices (DD)
Short Barreled Shotguns (SBS)
Short Barreled Rifles (SBR)

In Arkansas you cannot own the following NFA restricted items.

None

Follow this link to find out more about Arkansas and NFA restrictions on Class 3 Firearms

There are several type of Class 3 items that are restricted by the National Firearms Act.

Each state can impose additional restrictions on the sale, purchase, and transfer of class 3 firearms in addition to the compliance that is required with the national Firearms Act.

In Missouri you can own the following items that are regulated the the National Firearms Act

Machine Guns
Short Barreled Shotguns (SBS)
Short Barreled Rifles (SBR)
Any Other Weapon (AOW)

In Missouri you cannot own the following NFA restricted items.

Silencers
Destructive Devices (DD)

Follow this link to find out more about Missouri and NFA restrictions on Class 3 Firearms

There are several type of Class 3 items that are restricted by the National Firearms Act.

Each state can impose additional restrictions on the sale, purchase, and transfer of class 3 firearms in addition to the compliance that is required with the national Firearms Act.

In Minnesota you can own the following items that are regulated the the National Firearms Act

Machine Guns
Short Barreled Shotguns (SBS)
Short Barreled Rifles (SBR)
Any Other Weapon (AOW)
Some Destructive Devices (DD)

In Minnesota you cannot own the following NFA restricted items.

Silencers
Some Destructive Devices (DD)

Follow this link to find out more about Minnesota and NFA restrictions on Class 3 Firearms

If you live in a city in where the Chief law Enforcement Officer (CLEO) will not or easily sign a Form 4, there are several solutions.
Class 3 Weapons include suppressors, , short barrel rifles, machine guns, and other destructive devices.

The most common solution is to create a NFA revocable trust to hold title to the firearm or class 3 items. A NFA Gun Trust, Class 3 Firearms Trust, Florida Limited Liability Company, or Florida Corporation is a legal entity established under state law.

For NFA purposes many individuals prefer the a Revocable Trust over a corporation or LLC because the cost is far less on an ongoing basis. Business entities typically have state filing fees of around $150 a year. In addition there are the costs of tax preparation, compliance and filings with the IRS. In Florida and many other states Revocable Trusts like the NFA or Firearms trust do not require any disclosure or public filings. This means the ownership, control, and management is private. Although most Florida Revocable or Living Trusts can hold firearms or other class 3 items, many are not properly setup to deal with the issues involving firearms and other items which are regulated by the National Firearms Act (NFA). If the NFA is violated, the people in possession, and who transferred the items are subject to criminal charges, substantial fines, and forfeiture of not only the class 3 items in question but all firearms in the possession or ownership. ($250,000 penalty, 10 years in prison, and forfeiture of items) The gun or firearms trust must give the Trustee instructions and special powers so that they can legally manage for unplanned events. Weapons and other assets in a Firearms Trust can not be distributed like other assets upon the death or incapacity of the person who placed the items in the trust(The Grantor or Settlor). There are many advantages to a firearms trust, if you own or plan to purchase a class 3 items you should contact a lawyer who is familiar with these issues and can design a trust to protect you and your family from liability. If you are in Florida you can contact me and if you are in another state I would be happy to get you in touch with a lawyer in your state who can provide information on NFA Gun Trusts.

Violators may be fined up to $250,000, and imprisoned up to 10 years, or both.

In addition, any vessel, vehicle or aircraft used to transport, conceal or possess an unregistered NFA firearm is subject to seizure and forfeiture, as is the weapon itself.

An individual, business, or NFA Firearms trust may not register an unregistered NFA firearm.  Only a manufacture, maker, and importer can register a firearm.

Possession of an unregistered NFA firearms is a crime.  The ATF states that if you are in possession of a contraband firearm, you should contact the nearest ATF office to arrange for its disposition.

WARNING - although this is the advise of the AFT, they also state that mere possession is unlawful

Basically, there are 2 ways that an individual (who is not prohibited by Federal, State, or local law from receiving or possessing firearms) may legally acquire NFA firearms:

1. By transfer after approval by ATF of a registered weapon from its lawful owner residing in the same State as the transferee.
   

2. By obtaining prior approval from ATF to make NFA firearms.

[27 CFR 479.62-66 and 479.84-86 ]

In addition, a Corporation, LLC, or Firearms Trust may acquire NFA Firearms that are nor prohibited by Federal, State, or local law.

To create a NFA Trust Contact a Gun Trust Lawyer

The Milwaukee Journal Sentinel has an article on an odd application of the NFA and consequences of an improper transfer. This type of result only furthers support that NFA restricted items should be help in a NFA Gun Trust to help avoid invalid transfers.

The US District Judge said that Olofson, knew that the gun fired automatically and gave it to someone else to use on a shooting range. This is a technical violation of the NFA and could have subjected Olofson to 10 years in jail and $250,000 in penalties.

If you want a Silencer, Short barreled Riffle, or Machine gun and want to protect your family and friends from an accidental transfer or a case involving constructive possession, you should Contact Gun Trust Lawyer to explain the benefits of using a NFA gun Trust.