NFA Gun Trust Lawyer Blog

The ATF has recently made a decision to review Trusts for legal sufficiency. While this may slow things down for those using generic trust for NFA purchases (Quicken, Legal Zoom, Gun Store Trusts) I think its a good idea and will protect many from unknowingly violating the NFA.

We have seen several issues where the ATF is declaring trusts to be invalid that are in fact valid under various state laws. They claim they are not practicing law in those states and will not give legal advise. They suggest that you have the trust reviewed by a lawyer to tell you why it is invalid or make changes to the trust to make it valid.

If your trust was rejected by ATF we can help by reviewing and or amending the trust with our network of 75 attorneys in more than 40 states.

No CLEO Signature Required

The ATF requires that all individuals obtain approval from their Chief Law Enforcement Officer (the "CLEO") as part of the application process to obtain a Title II firearm from another individual or Class 3 dealer. Many CLEOs around the country are refusing sign or even acknowledge the ATF Forms. There is no legal remedy in most states to force the review of these forms. If using an NFA Firearms Trust to purchase a weapon, the Form 4 does not require the CLEO's signature.

No Fingerprints or Photographs are Required

When using an NFA Firearms Trust to acquire Title II firearms, no fingerprints or photographs are required. This is a cost savings and can also significantly decrease the time required to take possession of the items. Often fingerprints have to be retaken because they are not acceptable for the FBI's criminal database.

Privacy

Individuals who submit their ATF forms to their CLEO are often concerned about who will have knowledge of their firearms. They also express concerns that they will come under additional scrutiny because the police will have knowledge that they are in possession of these more restricted firearms. With an NFA Firearms Trust, neither the CLEO nor the police are given notice that you will be in possession of or own the NFA firearms.

Incapacity

If you become incapacitated your family or friends are the ones who step forward to help you. In doing so, they may come in contact with the restricted items and put themselves at risk of violating the NFA without knowledge. An NFA Firearms Trust help protect these individuals from violating the NFA by providing them clear instructions on what they are and are not permitted to do.

Death

When you die your individually owned firearms will be part of your "probate estate." Probate proceedings will be necessary to transfer your guns under your will or to your heirs and are part of the public record. Since a family member or a friend usually handles probate proceedings, it is important not to unknowingly place them at risk of violating the NFA. With an NFA Firearms Trust, your firearms are not subject to probate or public record. Your beneficiaries will be protected because they will receive guidance on how and under what circumstances the items can be legally transferred to others. If you have children, an NFA Firearms Trust has specific provisions to protect them and make sure they do not receive the property if they live in a location where it is illegal to possess NFA firearms, and most importantly they are mature and responsible enough that you would want them to have the firearms.

Co-owners and Authorized Users

If an individual purchases Title II firearms then he or she is the only one permitted to use or have access the firearms. Many people incorrectly believe that it is ok to let others use their NFA firearms when in their presence. However, the NFA would consider this a transfer and be a violation of the law. When your spouse or someone else knows the combination to your firearms safe, you may be violating the restriction on letting others access or possess your firearms. Improper possession through constructive possession is a form of unauthorized possession, and a violation of the NFA. If you use an NFA Firearms Trust to purchase Title II firearms, you can designate additional owners and authorized users. You can eliminate the risk associated with an improper constructive possession with a simple signature authorizing that person to be in legal possession of the items. This can help protect you and your family from the penalties of violating the NFA.

Reducing Risk of Legal Changes

Many groups are attempting to limit the ability to transfer firearms to their family or friends. With an NFA Firearms Trust an adult child, family member, or friend can be made a co-owner of the trust. While the ownership of the NFA Firearms Trust can be changed, the NFA Firearms Trust is still the registered owner of the firearms and no transfer has taken place under the NFA.

Penalties for Violating the National Firearms Act can be Severe.

Each violation of the National Firearms Act subjects the owner to forfeiture of all weapons, 10 years in prison, and fines of up to $250,000. An NFA Firearms Trust provides guidance to the creators, managers, and beneficiaries of the trust to help them avoid violating the NFA.

Benefits of a NFA Firearms Trust Over a Corporation or LLC

Corporations and LLCs have annual fees associated with them. Business entities are not private and much information about the individuals associated with them is contained in public records. Corporations and LLCs have annual state fees and other costs associated with the maintaince of the entity. Often business entities are subject to the requirement to file sales tax and income tax returns. If you already have a business entity that is used to purchase NFA firearms, the business is at risk if the managers or anyone else ever misuse a firearm. Each manager of a corporation of LLC can purchase firearms and subject the entity to the penalties for violating the NFA. To make a change to the people authorized to use, purchase, or possess the firearms, the secretary of state needs to be updated with the changes in the management of the company. This can cost money and take a substantial time to complete. In addition, business entities do not deal with incapacity or death like an NFA Firearms Trust does. Unlike with a corporation or LLC, an NFA Firearms Trust does not require any annual recording fees and documents do not need to be filed with the state. To make a change to an NFA Firearms Trust, one simply amends the trust to change who can use, purchase, or possess the firearms without risk of criminal liability for violating the NFA.

Benefits of a NFA Firearms Trust over a Revocable Trust

There are more than 50 differences between a traditional trusts and an NFA Firearms Trust. Only a few of the issues will be discussed here. Most trusts do not instruct how to purchase, who may use, or who may have access to Title II firearms. They also do not give the people involved with the trust enough information to properly sell or transfer assets. If you become incapacitated, it may be necessary to sell some assets. When you die, these restricted firearms need to be transferred properly. An NFA Firearms trust provides information to determine if:

1. it is permissible to transfer the items;


2. the items are legal in the state where they will be transferred to;


3. the beneficiary is legally able to be in possession of or use the firearms; and most importantly


4. the successor trustee is given the ability to determine in their own mind, if the beneficiary is mature and responsible enough to receive the firearms.

A normal trust allows the trust to be revoked even if it's assets become illegal upon revocation. Also a normal trust allows a trustee to resign while they are still in possession of restricted firearms. A trustee may also find that with a normal trust, an agent acting under a power of attorney may take actions that are in violation of the NFA and subject them to criminal penalties.

Most people using traditional trusts purchase NFA firearms incorrectly. They usually purchase them as an individual and then transfer the weapons into the trust. While the ATF may approve a transfer from the dealer to the trust, they never approved an individual transfer from the dealer nor a transfer from the individual to the trust.

Invalid Trusts

Many Free Trusts on the Internet or from other sources have been found to be invalid. Lately we have seen many dealers and manufactures providing trusts to customers or helping them to fill out the trusts in order to purchase firearms. The problem with using an invalid trust or one not signed correctly or at trust that is not complete is that the trust does not exist. If the trust does not exist, even if the ATF approves a transfer to the trust, you will be illegally in possession of the firearm and subject to the penalties of the NFA. Even valid trust have substantial problems with dealing with incapacity, death, and transfer of the firearms as they instruct the trustees to take steps that create liability to the beneficiary put the assets at risk of seizure, and put both the trustee's and beneficiary at risk of the penalties for violating the NFA.

If you want to form a NFA Firearms Trust or have your trust reviewed Contact a NFA Firearms Trust Attorney

NFA firearms and Constructive Possession. Some said it would never happen, but it seem that just recently Jesus Amador was arrested for possession / Constructive possession of an SBR.

Florida law does not allow individuals to possess the pieces to readily build an SBR, SBS, or Machine Gun unless permitted to do so under Federal law. While he may have been enticed by the police to take an action that he would not have taken, he eventually showed up to unknowingly sell the items to a police officer. Upon doing so 7 police officers at gun point slammed him to the ground and arrested him (as reported by Joshua Prince on his gun blog and by Mr Amador on Florida Gun Trader)

While some may say that this is a possession issue and not constructive possession, the fact is that constructive or actual possession are only ways to prove possession and as such there may be little significance between the two.

If you are going purchase, own, or use NFA firearms make sure you are protected by using a NFA Gun Trust that deals with these special firearms as Title II firearms and not as a traditional asset like a house, care, boat, bank account, or picture on the wall. If you do not believe there is a difference, call us and we will explain how they are different and why you need a gun trust for your firearms.

David Olofson owned what he thought to be a normal AR15. Unfortunately his AR15 as many do, misfired and shot off a three round burst.  The NFA has no intent required and as such David was in the illegal possession of Machine Gun.  He was arrested, convicted and his appeal was denied.  He is now in prison serving 30 months.  I guess he is lucky in that he was not fined nor did he receive the 10 years that the NFA authorizes.

If anyone thinks that BATFE will ignor improper transfers or possessions of items restricted by the NFA, they need look no farther than at his case outcome.  For complete informaiton on this issue and all transcripts, an interview from prison, and how the ATF appears to have framed David check out the JPFO website.

Section 479.11 of the National Firearms Act defines a Transfer as:  This term and the various derivatives thereof shall include selling, assigning, pledging, leasing, loaning, giving away, or
otherwise disposing of.

There seems to be much confusion over the violations of the National Firearms Act over this term because the typical legal definition of transfer involves a change in the possession and / or legal title of; convey.

There is clearly a significant difference in how the NFA defines the term Transfer.

Section 479.11 of the NFA defines a Machine gun as. Any weapon which shoots, is designed to shoot, or can be readily restored to shoot, automatically more than one shot, without manual reloading, by a single function of the trigger. The term shall also include the frame or receiver of any such weapon, any part designed and intended solely and exclusively, or combination of parts designed and intended, for use in converting a weapon into a machine gun, and any combination of parts from which a machine gun can be assembled if such parts are in the possession or under the control of a person.

Is a fully automatic 6mm airsoft gun a machine gun under the NFA? Of all the terms defined in the NFA, one of the most frequently used ones is the term weapon which is not defined.  I have submitted this question to the ATF and will update the site when we obtain an answer.

Section 479.11 of the National Firearms Act defines a Person as:  A Partnership, company, association, trust, estate, or corporation , as well as a natural person.

We have created a quick link to the NFA: www.guntrustlawyer.com/nfa.html

Click to download a copy of the National Firearms Act  NFA.pdf

This week an 8 year old child shot and killed himself at a gun show in Massachusetts.  For a good analysis of the potential negligence claims involving a child using a Machine Gun look at David Wolf's Florida Child Injury Lawyer Blog. This unfortunate incident goes to show the dangers of letting children possess or use a Machine Gun.  The NFA prohibits the transfer of weapons to children without an approval, except transfer of an item to a gun store employee or other licensed reseller.  Section 5845 (j) of the NFA defines transfer: 

The term. 'transfer' and the various derivatives of such word, shall include selling, assigning, pledging, leasing, loaning, giving away, or otherwise disposing of.

It appears that even though the gun show organizer may have been able to allow the child to shoot the Uzi under state law with the permission of the parent, the gun dealer was in violation of the NFA for transferring or loaning the weapon to the child.

In addition it is illegal under Chapter 5861 for any person to receive or possess a firearm transferred to him.

Not only was it a violation of the NFA to allow the child to be in possession, but the child was also in violation of the NFA for being in possession of the UZI. 

This unfortunate incident only goes to show the importance of safeguarding NFA firearms from the use or access of others.  If you own a machine gun as an individual and die, your child could inherit the machine gun.  As we have too often seen, some children cannot comprehend the dangers of guns.  A properly drafted NFA Firearms trust can protect young children from gaining access to restricted firearms or any firearms until the child reaches a specified age and others determine that they are legally and mentally stable and responsible enough to manage a firearm.

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

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

In Pennsylvania you cannot own the following NFA restricted items.

None but all Bombs are prohibited as Offensive Weapons

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

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.

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.

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