NFA Firearms Trusts

BRIEF OVERVIEW

NFA Trusts and Firearms Trusts, are specific types of Revocable Intervivos (Living) Trusts that deal with the unique issues of owning, transferring, and possessing Title II firearms (Silencers, Short Barrel Rifles and Shotguns, and Machine Guns). The Mark T. Garber L.L.C. law firm stands ready to help you prepare a custom NFA gun trust that deals with your personal and estate planning needs.

Under the National Firearms Act, a Class 3 Firearm is defined as a machine gun, sound suppressor (a.k.a. silencer), short-barreled shotgun, short barreled rifle, destructive device and "any other weapon". Your local gun shop can help you decide if you need to register your intended acquisition.

When individuals purchase a Class 3 Firearm, the Chief Law Enforcement Officer (CLEO) or the city or county where the individual resides is required to sign a document called a Form 4. Unfortunately, many if not all CLEO's are unwilling to endorse any request for the purchase of a Class 3 firearm or NFA item. If you would like to legally purchase and own a Class 3 Firearm, or if you find yourself in the position of inheriting a Class 3 firearm, an "NFA Gun Trust" can assist you with this endeavor. The "Gun Trust" actually will purchase and hold title to the restricted firearm or item. The NFA trust is not required to submit fingerprints nor seek the approval of the local chief of police. Instead the federal government will simply verify and investigate the application.

WHY A TRUST?

"Gun Trusts" are sometimes referred to as a Firearms Trust or Firearms Revocable Trust. A Gun Trust, Limited Liability Company (LLC), or Corporation is a legal entity established under state law. Many individuals prefer the Revocable Gun Trust over a Corporation or LLC because the NFA Trust is less expensive to operate and provides privacy. A Louisiana business will typically spend several hundred dollars per year on state filing fees and other corporate formalities. Additionally, there are the accounting costs of preparing and filing federal tax documents. Louisiana trusts do not require any disclosure or public filings. As a result of the private status of a Louisiana Revocable Intervivos Trust, the only people who know the terms of the trust are those you choose to tell or provide with a copy of the trust documents.

Additionally, the Trust device as opposed to an L.L.C. or "INC" is not subject to annual reporting requirements which if not met, potentially expose the holder to a violation of Title 18 as a result of the then existing invalid transfer, possession, and use of the NFA item. Charges from the ATF could subject you to forfeiture of your firearms, a $250,000 penalty, and up to 10 years in jail.

Most ordinary Louisiana Revocable Trusts can hold firearms but the potential problem is that many are not setup properly to deal with the special issues involving items regulated by the National Firearms Act (NFA). When the NFA is violated, the individuals who violate the act are subject to substantial fines, criminal charges, and forfeiture of all weapons (not just those regulated). ($250,000 in penalties and 10 years in jail)

Please contact our firm to meet with one of the Mark T. Garber L.L.C. (a Member of Murry & Associates LLC), attorneys to help protect your family and their assets.