We are often asked about the advantages of a Gun Trust by one of our Gun Trust Lawyers® over a LLC. I have compile a quick list of the most common advantages.

1. no federal or state tax or reporting requirements with a trust


2. no annual fees with a trust


3. with a trust you can easy, quick, and inexpensive to change who can use or have access to the firearms


4. privacy with a trust is not available with a LLC in most states


5. if the LLC is administratively dissolved, the items become illegal and fixing the LLC does not make them legal again under the NFA


6. a trust deals with incapacity and death for succession planning


7. a trust can be changed quickly (the same day) to fix problem with prohibited persons


8. your zoning may not allow for a business to be operated at your home.


9. easy to modify if you move or change states, LLC's often require to be registered in each state and additional yearly fees may be due.


10. some people want to use existing business to purchase NFA firearms, this can cause your business and livelihood to be at risk if someone uses the firearms incorrectly or allows others to have possession or use them.

If you would like to discuss the creation of a NFA trust for the purchase of silencer, SBR, SBS, AOW, or a machine gun contact us to begin the process. We work with over 150 Gun Trust Lawyers® in more than 43 states.

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)
Silencers

In Missouri you cannot own the following NFA restricted items.

Destructive Devices (DD)

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

<strong>NOTE:</strong> Starting 8/28/2011 you will be able to use a NFA trust to purchase NFA firearms in Missouri without the need of a C & R, FFL, or use of a Corporation or LLC.

In Missouri, you have previously needed to be an FFL to purchase Title II firearms from a Class 3 dealer. This may change soon as a new bill which is proposed to be effective on 8/28/11 would remove the FFL restriction. This means, you could use a Gun Trust to purchase NFA firearms. To read the bill follow this link.

When you are purchasing a silencer, SBR, SBS, Machine Gun, AOW, or DD from an out of state resident there are two ways of accomplishing the transfer.

The first and slower way is to do a Form 4 transfer to a local Class 3 SOT dealer. Once this is approved a tax free transfer can be made from that dealer to one in the purchaser's state and then a second Form 4 transfer can be done from the buyer's dealer to the buyer. This will involved 2 transfer fees and generally each dealer will charge a fee for the paperwork and transfer.

The second method involves transferring it directly on a Form 4 to the buyers Class 3 dealer who is located in the same state as the buyer. Once this is approved a second Form 4 transfer can take place from the dealer to the buyer. This will involve 2 transfer fees and fees from the single dealer. This method should be quicker since the dealer to dealer transfer is eliminated.

Thanks to the Alaska Machine Gun Association for letting us know about this. The Municipality of Anchorage has just imposed at $150 fee, effective 1 Jan 11, to process BATFE forms for CLEO signature.

Many might think that this is a Tax on a Tax and would violate Alaska's pre-emption statute.

While CLEO sign off is often the initial reason individuals begin to look at trusts, We have found that the other advantages of a NFA trust are the overriding reason most end up using a NFA Firearms trust over a revocable trust.

If you want more information on a NFA trust in Alaska or any state contact an Alaska Gun Trust Lawyer®

If you are purchasing a Firearm that was previously manufactured under a Form 1 it may contain the engraving of the previous owner. Since this item was previously manufactured, you will be using an ATF Form 4 and not an ATF Form 1 to transfer this item and as such it will require no engraving on your part.

Check out the new 300 AAC Blackout from Advanced Armament Corp.

Introducing the Advanced Armament Corp. 300 AAC BLACKOUT (300BLK). This system was developed to launch 30 caliber projectiles from the AR platform without a reduction in magazine capacity and compatible with the standard bolt.

Full power 123 grain ammunition matches the ballistics of the 7.62x39mm AK, has 37% more energy than 5.56mm M855, and 9% more than 6.8 SPC TAP 110. In fact, from a 9 inch barrel, the 300BLK has more muzzle energy than 5.56mm M855 from a 16 inch barrel. When 300 BLK is used in a 16 inch barrel, it has 23% more energy than 5.56mm M855 from a 16 inch barrel - with much higher-mass projectiles for a more dramatic effect on the target. Or choose subsonic cartridges for optimal use with a sound suppressor - 220 grain Sierra OTM (open-tip match) bullets vastly outperforms a 9mm MP5-SD in penetration and long range accuracy.

Due to the high efficiency of the cartridge, less powder is used than 5.56mm, which results in a rifle that is a comfortable to shoot - even with a short barrel.

Reloading dies available from Forster products, Reamers and headspace guages available from Pacific Tool and Gauge.

Generally we are hearing that it is taking 3-5 months from the time you submit your ATF forms for approval. A local gun store Shooters of Jacksonville told me they have two agents assigned because of the number of transfers they do. They stated that this means that ATF Form 4 applications that they sent in are processed faster than at other locations. While I do not know if this is true, I can state, that a recent Form 4 I submitted through Shooters only took 75 days from the date I signed it, until receiving the approved Form 4.

If you want to check on the status of your Form 4 or Form 1, you will need your serial number and to contact ATF.

National Firearms Act Branch,
Bureau of Alcohol, Tobacco, Firearms and Explosives
244 Needy Road, Suite 1250
Martinsburg, WV 25404
Tel 304-616-4500

Yes it is legal in most instances to travel with your NFA firearms (those sold by a class 3 dealer and often referred to as TItle II firearms). You will have the same restrictions as traveling with a normal firearm but also need to comply with the regulations for interstate travel with a NFA firearm. For more information on transporting NFA firearms across state lines see our ATF Form 5320.20 page.

Remember that they need to be legal in your destination state.

Recently I was asked by one of the attorneys I work with about provisions for a will to deal with the NFA firearms that an individual owns outside of their trust. I wrote something on this topic which can be found on my Florida Estate Planning Lawyer Blog in an article How to deal with NFA and Non NFA Firearms in a Will

Today I received an email from someone who was forming a trust to transfer assets from their father's estate. There were NFA items in the father's estate. The person's estate planning lawyer had advised them that it was OK to transfer NFA firearms to a trust using a general assignment of personal property. A general assignment of personal property is a standard form that transfers all personal property not requiring a deed or special documentation to a trust and is commonly used with a standard revocable living trust.

Unfortunately his lawyer must not have been familiar with the NFA because no one should ever do such a thing. This would be a violation of the National Firearms Act, and subject the individual to confiscation of all firearms, 10 years in jail for each violation, and up to a $250,000 penalty for each violation.

At this time of the year, we are often short of time and rushing to take care of things before the holidays. Before making a mistake with an NFA firearm, learn about them and the additional restrictions placed upon the use, possession, transfer, and purchase of them in your state and around the country.

If you are going to ask a lawyer about an issue involving the NFA, make sure they understand the NFA and what a Title II firearm and Class 3 SOT license are. We all know firearms can be dangerous in the hands of the uneducated, here is an example where the uninformed can cause you a problem.

To contact a NFA Firearms Attorney, just email us or call us and we will be glad to help.

The NFA defines who can own a Title II firearm as a natural person, corporation or trust.... When an individual makes application to own a Title II firearm they are the only person who can be in possession or have access to the firearm. This creates a problem for many individuals who are married, have others who know the combination or how to gain access to the items, or want to allow others to use the firearms, even in their presence.

Joshua Prince has written and excellent analysis of the case law surrounding constructive possession and the US v. Turnbough case which stated that the Government may establish constructive possession by demonstrating that the defendant exercised ownership, dominion or control over the premises in which the contraband is concealed. Joshua goes on the state that if a spouse or other person does have the combination to the safe where the NFA firearms are kept it would be virtually impossible for the prosecutor to show that the other individual knowingly has the power to exercise dominion and control over the firearms.

The real problem occurs when another does have access to the items or can exercise dominion and control over the NFA firearm because the prosecutor can then charge that individual with constructive possession. In US v. Turnbough, an illegal firearm was in Turnbough's home and the court of appeals found that a reasonable jury could have found that he, his live in girlfriend, and her child could conclude that all three parties exercised dominion and control over the gun and the possession could be either sole or joint.

While there are not any constructive possession cases involving NFA firearms this does not mean that the BATFE could not bring a charge of constructive possession against a spouse or other person who could exercise dominion and control over an NFA firearm.

Remember that there is no intent element to violate the NFA. Like speeding, you do not have to intend to speed to be charged with speeding.

So how can you protect yourself, your family, and your friends? If you use a NFA trust or other allowable business entity to own the items, you can allow others to be in possession, use, purchase, and know how to access the firearms.

There are many downsides to using a business entity to own NFA firearms. In most states, there are yearly state fees associated with the entity. In addition, you must deal with loss of privacy, EIN's, and federal tax compliance for the entity. The ATF only recognizes those on the official state records as having access to the items. The entity will be subject to probate upon the death of any owner. There are typically costs associated with updating the state records to allow for changes in possession and it takes time to make these changes. There are no provisions in a business entity to deal with incapacity or death in determining whom the beneficiaries are, where they live, if they are qualified to receive the items, directions on how to properly transfer the ownership and items, and most importantly if the beneficiary is mature and responsible enough upon your death that you would want to put the firearms in their hands.

Because a trust deals with these items on a regular basis, a NFA Trust (different than the traditional Quicken, Legal Zoom, or lawyer prepared revocable trust) can provide the ability to easily add, remove, or modify the users, owners, and purchasers as well as deal with the unique issues of firearms ownership that are not present in other types of ownership.

We work with more than 75 lawyers in over 43 states that can help you design a NFA trust to meet your specific needs and goals. Our NFA trust does not use a schedule of assets so your other firearms that are placed in the trust do not become know to the ATF upon the purchase of a Title II firearm from a Class 3 dealer or individual.

If you have any question on how a NFA trust can help you purchase Title II firearms and protect your family and friends from the criminal penalties associated with improper possession, purchase, use, or transfers please contact a Gun Trust Lawyer® and we would be happy to answer your questions. In Florida please contact our Florida Gun Trust Lawyer®.

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 New Jersey you can own the following items that are regulated the the National Firearms Act

Machine Guns *
Any Other Weapon (AOW)

In New Jersey you cannot own the following NFA restricted items.

Silencers
Short Barreled Shotguns (SBS)
Short Barreled Rifles (SBR)
Destructive Devices (DD)

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

* Machine guns - Onwership for persons is regulated under N.J.S. 2C:58-5
NOTE: In New Jersey, AOW's are limited

Many People have asked, How to fill out a form 4 when making class 3 purchases.  Because of this, we have added a page on this topic.  Please see

How to Fill out an ATF FORM 4 For NFA Class 3 Purchases

If you need help forming a trust, please Contact to find a Gun Trust Lawyer® in Your State.