WHAT IS A GUNLOCKER TRUST?
A GunLocker Trust is also known as an NFA Trust, or Gun Trust is designed to hold NFA firearms (also called NFA weapons) guns and accessories regulated by the National Firearms Act. They are sometimes called “Class 3 weapons.” NFA firearms include all fully automatic and select fire weapons, short barreled rifles and shotguns and sound suppressors (silencers). NFA firearms include things that you might not expect.
You can lawfully own NFA firearms, as long as they are permitted under state law. You have to register them with the Bureau of Alcohol, Tobacco, Firearms and Explosives (“BATFE”) and pay a $200 tax on each one. Unless you acquire them through a trust or other entity, you have to obtain the consent of your chief of police. If you create a special type of trust, no local approval is required. These trusts have other significant advantages as well. A GunLocker Trust, also referred to as an NFA trust, a “Gun Trust” or a “Class 3 Trust” is a type of revocable trust that you create specifically to acquire NFA weapons and to hold your other firearms. It differs substantially from an “ordinary” revocable trust. A GunLocker trust makes it easier and more private to transfer not only NFA firearms, but any guns, to your family members if you die or become disabled. Assets in a trust pass directly to your beneficiaries outside of the probate system. There is no public record of what you own.
WHY DO I NEED A GUNLOCKER TRUST?
No Signature Required in order for an individual to lawfully acquire an NFA weapon, his or her police chief or first selectman must sign a form called a “BATFE Form 4.” Many chiefs are reluctant, or refuse, to sign the form either for political reasons or concern about potential liability. There is no way to compel a chief to sign the form. If your chief refuses to sign, and you do not have a GunLocker trust, you will not be allowed to purchase any NFA weapons.
Avoiding Confiscation and Criminal Liability
Ordinary revocable trusts do not give the trustee the powers needed in order to deal with NFA weapons and with BATFE. Before distributing any NFA Item, the trustee must be sure that your beneficiary is not a “disqualified person” under State and Federal law. He or she must also determine which laws apply, including statutes in your beneficiary’s home state.
Penalties for violating the National Firearms Act can be severe
Forfeiting the weapons is only the beginning. Individuals who run afoul of the NFA can be subjected to fines of up to $250,000 and 10 years in prison. An ordinary revocable trust does not give the trustee any instructions on dealing with firearms. A GunLocker trust provides the trustee with a “roadmap” to help him or her and your beneficiaries stay out of trouble.
If you die or become disabled, your firearms will be part of your “probate estate.” A Probate Court proceeding will be required to deal with your guns. Any member of the public can find out about the items in your collection and who will receive them.
Some people have used Corporations and LLCs to acquire NFA Firearms
Corporations and LLCs must pay ongoing fees and need to file tax returns. Trust offer significant advantages over corporations and LLCs, which are primarily intended to be “business entities” and are subject to annual fee and tax return requirements. After you have signed your NFA trust, there are no additional fees. No tax returns are required. Unlike a corporation or an LLC, a trust is a totally private arrangement. Other than BATFE only you and the people you tell will have any information about the trust assets.
Spouse and Children as “Registered Owners”
An NFA firearm can never be handled or transported by anyone other than the registered owner. NFA firearms owned by trusts may be lawfully purchased, possessed, and used by any trustee or “manager” of the trust.
Example: You own a machine gun as trustee of your NFA trust. You, your spouse, and your adult child are all trustees of the trust. Any of you may use and transport the weapon without the others present.
Mile High Gun Law Group a Division of Davis Schilken, PC