The Supreme Court has ruled today in an opinion by Judge Alito that the 2nd Amendment applies to the states through the 14th. More to come later. If you want to read the decision it’s posted on the Supreme Court Website – McDonald v. Chicago or from our website McDonald_v_Chicago.pdf

irs_logo.jpgUnfortunately, the answer is no. The ATF considers the trust as a separate legal entity and the tax must be paid for the additional transfer. Given that this is essentially an tax by the IRS, it would seem logical that the tax would be waived because a revocable trust is a pass through entity and not taxed. As far as I know this has not been challenged because it is only $200 for the transfer and the cost to fight it would be many thousands of dollars.

Want to ask a question about Title II firearms or the NFA and NFA trusts, I will be the guest of Tom Gresham on Gun Talk tomorrow (June 6th) at 3 PM EST. Call 1-866-825-5486 to ask questions or just email us. If you do not get Gun Talk in your area, you can listen to one of the many live streams or download it on iTunes
You can also listen to a Gun Talk Sunday’s from 7-10PM on the re broadcast on Sirius Channel 108 and XM Channel 139

While times have varied greatly over the last few years, it appears that the time your ATF Form 4 or Form 1 will take for approval seems to be tied to who the examiner is. A website NFATRACKER.com is collecting information on the times and offers some reporting on how long various transfers are taking. While the site is gaining speed and beginning to gather data, anyone who has a recent transfer should go and record your results. It is easy to create a login and select the type of item and whether you were an individual trust or corporation and the dates that certain events took place. So far we do not know how or if there is a way to pick who your examiner is by what the name of your trust is. The site’s manager has stated that one reader seems to have found that there is some correlation between the name of the dealer and the examiner but it is still unknown if you can do anything to improve the time you trust takes for approval. If we figure anything out we will keep you updated. If you need help finding a local NFA Gun Trust attorney, have questions about a trust, or want to create a Valid NFA trust Contact Us.

Some dealers are currently providing trusts to their customers to avoid the Chief Law Enforcement Officer (the “CLEO”) sign-off that is required for individual purchasers of Title II Firearms. When a non-lawyer dealer fills out or creates a trust for an individual they are violating their state’s unauthorized practice of law (“UPL”) statutes. Many dealers and manufactures are providing generic trusts that do not address the unique issues of the NFA and often do not comply with the state requirements for proper execution. In the past, the ATF has accepted many of these invalid trusts and approved the transfer of these firearms. Unfortunately for such individuals, if the trust is invalid, the possession that has been approved did not take place, and the individual or individuals who are in possession or using the items are in violation of the NFA. These dealers are taking a big risk in providing improper trusts to their customers. They are not only violating the state UPL statutes, but can also be liable for violating the NFA, in addition to civil liability for the bad advice which results in the consumers’ property loss, civil penalties, and/or criminal prosecution.

Be careful when copying a form or getting a trust from someone who is not a licensed attorney. Many individuals ask why we work exclusively with local licensed attorneys in each state. We do this to maintain the quality of our documents and to make sure that a licensed attorney in your state reviews the documents and makes changes based upon your local state laws.

If you want to create your own Gun Trust without a lawyer, there is a real online Gun Trust that can be created in less than 10 minutes.

If you want to create a gun trust with the help of a Gun Trust Lawyer® Contact Us to begin the process.

Many individuals are using Quicken, LegalZoom, or traditional revocable trusts to purchase firearms regulated by the NFA. A traditional trust is not appropriate for the purchase, transfer, or use of NFA firearms because of the unique characteristics of these firearms. A typical revocable trust is created to protect an individual from others who might abuse their powers and detrimentally affect their interest in the property that is owned by the trust. These traditional trusts are problematic for holding assets regulated under the NFA because they do not consider the penalties and legal obligations of those involved with the trust in relation to state and federal laws. As lawyers we have a duty to become knowledgeable and competent in the areas in which we practice or associate with someone who can provide the knowledge necessary to provide the legal service we are offering. A lawyer who provides a traditional trust to a client with the intent of purchasing, holding, transferring, or using NFA firearms opens themselves up to a malpractice claim because the traditional trust instructs individuals to take actions which violate the NFA. While this may not be apparent during the grantor’s life, the violations often come to light upon the death or incapacity of the grantor.

During the life of the grantor, while the problems may be minimized, there are still potential problems with a traditional revocable trust when used to hold NFA firearms. Most gun dealers and lawyers do not understand the importance of purchasing the items correctly or protecting others from constructive possession. While the ATF does not appear to be prosecuting individuals for the improper purchase or storage or sharing of these items at this time, there is no intent required in the NFA and a policy change could subject many individuals, their families, and friends to the penalties involved in a NFA or state violation.

UPDATE If you want to create your own Gun Trust without a lawyer, there is a real online Gun Trust that can be created in less than 10 minutes.

If you want to create a gun trust with the help of a Gun Trust Lawyer® Contact Us to begin the process.

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