Today we received another copy of a Gun Store Generic NFA Trust that was provided to a customer of the shop. Not only was it a generic trust and did nothing to advise or protect the client from issues regarding the transfer, ownership, possession or use of TItle II firearms (sold by Class 3 dealers) but the trust itself was invalid as it did not comply with the requirements to create a valid trust in the State. While it may have been a valid trust in another state, each state has its own requirements for creating a valid trust. These requirements change and a trust that may have been valid a few years ago may not be valid under the current laws of the state. It is important to make sure your trust complies with the state’s requirements for creation of a valid trust. What is disturbing is that ATF approved transfers to this invalid trust.

Remember just because ATF approves a transfer, the agency is not stating that your trust is valid nor that you are legally able to be in possession of the firearms. If you have a free trust or a gun shop trust it is important to have it reviewed for legality as well as compliance with the ATF to make sure your document is valid and that your document does not instruct you or others to break the law in regards to regular firearms or those restricted by the NFA.

One of the benefits of a gun trust is that it can be created by a Gun Trust Lawyer® to last throughout your life or in some cases can be designed to last for generations. Trusts are subject to the Rule Against perpetuity (RAP) which may limit how long the trust can last.

The common law RAP was designed to keep people from controlling from their grave. Today the modern trend it to extend or eliminate this restriction and many states like Alaska, Idaho, New Jersey, Pennsylvania, Kentucky, and South Dakota have abolished the RAP by statutes.

In addition, 26 States (Alabama, Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Florida, Georgia, Hawaii, Indiana, Kansas, Massachusetts, Minnesota, Montana, Nebraska, Nevada, New Jersey, New Mexico, North Carolina, North Dakota, Oregon, South Carolina, South Dakota, Tennessee, Utah, Virginia, Washington, West Virginia), the District of Columbia, and the U.S. Virgin Islands, and is currently under consideration in New York) have enacted the Uniform Statutory Rule Against perpetuity which extends the time your trust can control from 21 years after the death of a life in being at the time it was created to 90 years of creation if it actually vests.

In addition other states have made additional changes to extend the vesting period for Trusts. Two such examples are Florida at 360 years and Arizona at 500 years.

So even if you live in a state that has a short RAP there may be a benefit in extending the life of the trust by changing the jurisdiction of your trust to another state.

This is a common technique used with our Multi Generational Asset Protection Gun Trust to allow children, grandchildren, great-grandchildren and beyond to use and have access to the firearms without risking their loss to creditors.

While the Bill would legalize hunting with silencers, the bill also includes stiffer penalties for poaching while using a silencer. Most legislation regarding silencers has been based on anti-poaching concepts. The NRA and the American Silencer Association have done a good job at helping to pass similar bills in other states over the past few years. Anyone who has used a silencer knows that a suppressor is a better name and that unlike they are shown in the movies, a suppressor does not make a firearm silent.

The modern trend is to make silencers legal to use while hunting.

Starting January 1, 2013 you will be able to purchase, transfer, make, possess, and use a SBR in IL. At first glance it appears to be very limited and only apply those with a valid and active military re-enacting group membership to use them for military re-enacting. But there is an interesting exception, those with a Valid C & R license can also own them.

The Law is poorly written and leaves many questions unanswered. A Gun Trust cannot have a C&R license, but a Trustee of a Gun Trust Can have a C&R license. The question is will ATF allow a Trust to purchase a SBR if all Illinois based Trustee’s (the authorized users) have a C & R License as required under IL law. If not you will still need a CLEO sign off because you can’t have a C&R within a Trust.  ATF has stated that a Trust cannot own an SBR in IL (2014). 

Also, once you modify a C&R firearm it no longer retains its C&R status, but the Illinois law is different than similar laws in CA because if you have a C&R license, you can buy any SBR not just a C&R SBR.

In Summary, SBR’s are legal in IL if you have a C&R regardless of whether the SBR is an SBR. It appears based on Documents received by the ATF that a Trust or Gun Trust may not own an SBR in IL.

Silencer-map.jpgWhile a Gun Trust or other forms of ownership can allow you to purchase Silencers or other Title II firearms in states where they are legal, it is important to realize that just because you or a trust own a Silencer or other Title II firearm, you do not have the ability to take those items to states where they are illegal to possess.

For example silencers are not legal to purchase, own, transfer, or use in Illinois. Recently an individual was arrested for threatening police and possession of an illegal silencer. The silencer may have been legally purchased but its presence in Illinois is a crime and will make the silencer illegal.

While it sounds like Gali, the individual with the illegal silencer, is in a lot of trouble, the additional penalties for possession of a silencer could add up to more than 10 years in jail and a $250,000 penalty plus seizure of the vessel (his car) that the illegal silencer was found in.

While most states have legalized the possession and use of silencers there are a few states where they are not legal. This silencer may have belonged to someone else or purchased without paying the required transfer fee of $200. Because all silencers are registered with the BATFE, the legal owner of the silencer could also find himself in trouble for the improper transfer of a silencer which has the same penalties discussed above.

One of the big downsides to purchasing a silencer as an individual is that you are the only one who can have access to and use the silencer. A Gun Trust can help you by allowing people to use or be in possession of the silencer without breaking the law. It is important to remember that a Gun Trust does not allow you or others to bring otherwise legal firearms into a state where they are not permitted.

One way to protect yourself from the actions of others in regards to using a Gun Trust to purchase NFA firearms is to make sure that the other authorized users do not have the ability to make purchases without your permission. Many traditional trusts and some Gun Trusts are not designed to help with the potential unknown violations by others involved with your Gun Trust. If your gun trust contains the Gun Trust Lawyer registered trademark then your trust will have been setup to deal with these issues by giving you the flexibility to create users who cannot purchase and users that can purchase Title II firearms.

atf-logo.jpgThe ATF told attendees at the NSSF Import/Export conference that they had hired 12 temporary research assistants and a supervisor to review Form 4 and Form 1 applications for mistakes before the examiner gets them. (Reported by Joshua Prince at the Prince Law Firm a PA Gun Trust Attorney)

Back in April the backlog on Form 1 and Form 4 transfers was around 43000. The additional staff has almost doubled the number of transfers per month that the agency can handle. The ATF is also asking Congress to use part of the revenue generated to help update their antiquated systems as currently the taxes collected from the Form 4 and Form 1 applications is deposited into the Treasury’s account where the ATF has no access.

Apparently if a FFL submits a Form 1 or Form 4, their applications are put in a special folder for special processing because the background of the FFL has already been checked.

UPDATE FOX news is the first major network to confirm this story we began discussing over 8 hours ago.

I received numerous emails about the UN Treaty not being approved. The Examiner and TheGunMag.com have also reported that It was announced this morning that the US will not sign the UN Arms Treaty in its current form. While it is possible that a modified treaty could be singed at a later time it appears that the intense public awareness of the restrictions on our Second Amendment rights has cause such outreach by firearms rights supporters that the Treaty will not be signed in its present form.

As of this afternoon, I am seeing no major media outlets reporting this fact and some even alluding that it will still be passed. Will it be passed or not? We will know if a few days. Below I have complied a few sources on the story and even read through the proposed treaty which I found to be very circular and while supporting gun rights of states, would appear to require states (countries) to pass laws that would not permit misdirection or misuse of firearms by others. How else can you do this other than to ban certain small arms.

Even if this issue fails to pass this week, I am certain that we will see this issue again.

Update GunMag.com is also reporting that Alan Gotlieb who is at the United Nations in NY said the government will not sign the document.

The Seattle Times is reporting that the U.N. Treaty is unlikely to curb U.S. gun Rights. If passed this article appears to be an effort to distract from the true nature of the Bill. A misleading article at best.

The UN has a history of pursuing disarmament including firearms owned by individuals. While the text appears to talk about gun rights, it talks about them in terms of the states rights or collective self-defense rights and not at the individual level as we have under the Second Amendment. The UN has described its efforts on their own website as wanting to advance the restrictions and availability of ownership of small arms by the individual and destruction of surplus state (government-owned) weapons.

The Preamble states “Underlining the need to prevent, combat and eradicate the illicit trade of conventional arms and to prevent their diversion to illegal and unauthorized end use, such as terrorism and organized crime.”

The Principles The inherent rights of all States to individual or collective self-defense;
(NOTE these are rights of the state and not the individual)

Goals and objectives include avoiding international trade in arms. While this treaty would apply to larger arms like ships, tanks, aircraft, it would also apply to small arms and light weapons.

Each country would be required to create a national control system (registry) and would prohibit the transfers what would violate the treaty, would be a violation if they the arms were eventually transferred to an inappropriate personal or country, or were used for genocide, crimes against humanity, war crimes…

The UN document is similar to many UN treaties and appears to be so circular in nature that while allowing legal uses and each state to make their own rules, seem to restrict the rules that can be made by agreeing that no states (country) rules would possibly allow for an illegal or improper use of the arms to be regulated.

Basically you can’t own an AR15 because someone might sell one to a drug cartel that might do something wrong with the firearm. As such those firearms would not longer be permitted to be sold. This type of circular logic would have no end and surly end up eliminating all or most future firearms transactions.

If the treaty is signed what will happen? The treaty would go into force until the Senate voted to approve or deny the treaty. It would take 66% of the senators (67 Votes to Approve it). While this may be a problem, a Signed treat would be enforced until it was brought up for a vote. Some questions whether there would be enough senators to bring the treaty up on a vote.

Does anyone really think that laws keep criminals and terrorist from obtaining firearms?
To read a copy of the UN Treaty read the rest of this article.
Continue reading

atf-logo.jpgThis week I have received two trusts from potential clients who sent them in for review that were invalid. Even if ATF approved a Form 1 or Form 4 transfer to these trusts, anyone in possession of the TItle II firearms would be illegally in possession of them. Once person already had 3 items in their possession and 2 more on the way.

Both trusts claimed to be gun trusts but were obviously not intended for firearms much less those subject to the NFA and contained many of the traditional language found in a trust designed for managing financial assets.

While in some ways the language seemed to be slightly better than a Quicken trust (except for the fatal flaws that made them defective) they only briefly mentioned the NFA or guns in the trust and gave no guidance based on state or federal restrictions of firearms based on the geography of the transfer or the legal status of the people involved with the trust or whether the beneficiary was legally able to be in possession of the firearms based on the unknown circumstances of the future. While all of this may sound complicated, a real Gun Trust like one provided by a Gun Trust Lawyer® will deal with all of these issues and more.

Our trusts have been reviewed by hundreds of estate planning and firearms lawyers. If you have a “free gun trust”, “Gun Store Trust” or trust that you are concerned may not protect your and your family, send it to us and we will review it and let you know what type of problems you may face. Normally we charge for reviewing other trusts, but for the next 30 days we will review them free of charge under the federal laws.

Some common things to be concerned about.
1) I got my trust off the internet 2) your trust references laws of another state 3) your trust is less than 15 pages 4) your trust did not come with a detailed manual on how to make purchases or who can use the items 5) your trust does not contain the Registered trademark Gun Trust Lawyer®

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