NFA Gun Trust Lawyer Blog

August 30, 2009

NFA Trusts: Silencer Manufacture Provides Invalid Forms to Clients for Title II Purchases

While many dealers provide Trusts and help clients fill our Trust Documents ( a violation of law in most states), this was the first time I had run across a Manufacture of Title II firearms who was providing trusts to clients. This Trust was not being completed by the Class 3 manufacture, but was a Fill in the blank form that was supplied by a silencer manufacture. It had a place to print your name, date, pick successor trustee’s and sign. There was no place to witness ( a requirement in many states). While the trust appeared to be better than some forms we have seen, it will missing some of the schedules. The main schedule that was missing was the Schedule of Beneficiaries. It was not evident that one was necessary and as such the trusts we were reviewing did not contain them.

As we have discussed before, a beneficiary is an essential element to a trust and in most cases the failure to include a beneficiary who is different from the creator will cause a trust to be invalid.

This trust, as with many Quicken or Legal Zoom trusts failed to address the firearms and the many unique issues that arise when dealing with Firearms. If a valid trust would have been created, it could have transferred a bank account, chair, picture on the wall, or most any item without problem, but would have not been a good idea to use for a firearm.

August 20, 2009

ATF Form 1 (5320.1)for SBR/SBS with multiple barrel lengths

by David M. Goldman

When submitting a Form 1 to the ATF for a SBR or SBS with multiple barrel lengths, the ATF will no longer accept a Form 1 with multiple barrel lengths. It is recommended that you submit the ATF Form 1 (5320.1) with a single barrel length for approval. Follow this link for more information on how to fill out an ATF form1 (5320.1).

If you have additional calibers you want to list you should attach additional configurations in a letter attached to your Form 1 stating the caliber, barrel length, and overall length as related to the firearm listed on the Form 1.

Previously ATF accepted them by being listed in 4h on the Form 1 but no longer accepts this.

August 18, 2009

How do I transfer firearms that I now own into my new NFA Gun Trust?

by David M. Goldman

If you have regular firearms and your state allows you to transfer them to an individual without going through a dealer, you can fill out the assignment form that we supply with the NFA firearms trust. On the other hand if your state requires other steps to give or sell a firearm to an individual you will still have to comply with your state’s laws when transferring the regular firearms into the NFA Trust.

With Title II firearms you have to deal with the same issues as above + the requirements under the NFA. If you are purchasing from :

1) an individual within your state, you can use the form 4 and no dealer is required on the federal level- unless your state would require a dealer to be involved with a regular firearm of the same type.

August 17, 2009

Update: – Free NFA Trust Form for Class 3, Title II purchases.

by David M. Goldman

I was contacted by the firearms dealer offering the Free downloads of the NFA trust and they have removed the links on their website. Since being contacted, by this dealer I have had reports of other dealers in Florida, Texas, Arizona, Utah, Nevada, and South Carolina who are offering Free trusts. While I have not had a chance to review all of them, there have been several trusts that were not set up correctly and pose substantial risks to the clients, their spouses and families for Constructive possession of NFA firearms.

The question still remains as to what will happen to their clients and others who have downloaded the invalid trusts and submitted them to the ATF. Apparently the ATF has approved them. It should be noted that just because ATF approved a Form 4 or Form 1 Transfer, this does not mean you are legally able to possess the firearms. They are only approving the ability to transfer the NFA firearms to a legal entity described on the Form 4 or Form 1.

To read more on this topic see the original article Free NFA Trust Form for Class 3, Title II purchases. This article was written by David M. Goldman a Jacksonville Estate Planning and Probate Lawyer at the Law Office of David M. Goldman PLLC PLLC.

August 17, 2009

How to Fill out an ATF 5320.1 Form 1 for a NFA Trust

by David M. Goldman

When filling out a Form 1 for the first time with your NFA trust it can be confusing. With an ATF Form 4, there is typically a dealer involved or someone who has done it before so there are not as many questions. I have created a page on How to fill out a Form 1 with a link to a 5320.1 Form 1 that you can download and a sample that is filled out that can be used as a guide. The page also includes instructions on what information should be contained in your Form 1.

August 17, 2009

Do trustees of the NFA Gun Trust have to fill out forms, be fingerprinted, or have a background check by the CLEO?

by David M. Goldman

While a trustee needs to sign the Form 4 or Form 1, no additional paperwork is required because a NFA Gun Trust is being used. Other Trustee’s do not need to sign the paperwork, if you are using a properly drafted NFA trust that authorized any Trustee to make the purchase without consent of the other trustees.

This is something that you may want to modify in your trust and should talk with a Gun Trust Lawyer® about.

In addition, the trustees do not have to include fingerprints or go through a background check by the CLEO as is required by an individual. NOTE: Most states and gun stores will run the NICS check on the person who is picking up the weapon, upon approval by the ATF.

August 14, 2009

Must I update the ATF if I modify my NFA firearms Trust or Gun Trust?

by David M. Goldman

According to Mr. Howard, the section chief of the ATF, there is no requirement under the NFA or BATFE to update a modified Trust with the ATF when the people involved are modified. The only time that the ATF must be notified is if one of the Trustees becomes ineligible to be in possession of the items.

A properly drafted NFA trust should notify under which conditions a Trustee should resign, whom they need to notify, and the time constraints required under to avoid having the weapons seized and to avoid risk of jail time and monetary penalties.

To speak with a Gun Trust Lawyer®, Contact Us.

August 13, 2009

Free NFA Trust Form for Class 3, Title II purchases.

by David M. Goldman

Free NFA Trusts from your dealer – are they worth the paper they are written on, or could you face jail time for relying on bad advise from your dealer?

Recently I was contacted by a client who’s gun dealer provides their clients a free Revocable Trust to purchase NFA items. After reviewing the Free NFA Gun Trust Form, I was shocked to discover that there was no way this trust could create a valid trust. A trust by definition must separate beneficial and legal ownership of the assets that are held in the trust. If this is not done, there is no trust. If there is no trust, any transfer to the trust is a violation of the NFA whether or not approved by the ATF. If you are in possession of a NFA firearm and your trust is not valid, you have committed multiple violations of the NFA each of which is subject to a 10 year jail sentence, $250,000 in fines & forfeiture of the firearms.

While some people are interested in only acquiring the firearms, many are interested in protecting their family and friends from illegal purchases, transfers, possession and other activities that would subject them to 10 years in jail and $250,000 penalties associated with each NFA violation for a trust.

August 13, 2009

If the NFA trust “owns” the firearms, who may use them?

by David M. Goldman

Any current Trustee of the NFA trust may use the firearms. A properly drafted NFA trust will have provisions that make a trustee ineligible to serve if they are disqualified for one of the legal reasons a person cannot be in possession of an Title II firearm under the NFA.

August 12, 2009

May I or should I place other firearms / weapons in the NFA trust (rifles, shotguns, pistols, knives)

by David M. Goldman

One of the most common questions regarding the formation of a NFA trust is whether it is a good idea to put other firearms or weapons in the trust with the Title II firearms.

Generally as long as you would want those items to go to the same beneficiaries, there is no problem in putting non NFA firearms or other items with similar concerns in the same trust. Under no circumstances should you place regular assets like your personal bank accounts, stock accounts, or real estate inside a NFA trust or trust that is designed for NFA purposes.

A properly prepared NFA trust will have provisions that make the risk of abuse by a trustee or successor trustee to great. The flexibility that is necessary to deal with the unique issues of firearms ownership, transfer, possession as well as the potential risk of criminal liability make us recommend that only firearms and other related property is in the trust.