NFA Trusts should also allow the Trust to own non-NFA firearms, magazines, ammunition and other firearms related items.
One important item to note is that an individual cannot be a “Prohibited Person” and be a Trustee or Beneficiary of an NFA Trust. A “Prohibited Person” is, in essence, a person barred from purchasing and owning a gun when you file a Form 4473 to purchase a firearm.
NFA Trusts Cost:$450
Our NFA Trusts are designed to provide a great deal of flexibility compared to the cheap Trusts available on line. First, the price for my NFA Trust is $450. That includes a face to face meeting or conference call with us to go over the various options that are available, including options concerning your powers as Primary Trustee; your ability to provide for the addition and removal of Temporary Co-Trustees; the number of Temporary Co-Trustees; who the Beneficiaries and successor Primary Trustees of the Trust would be upon your death; who would be alternate Beneficiaries in the event your originally named beneficiary(ies) die before you; who would be the Primary Trustee(s) in the event that there were only minor beneficiaries upon your death until the minor beneficiaries attain age twenty-one (21); and the like.
Once the NFA Trust is drafted, we will have another face-to-face meeting or conference call with you to go over your NFA Trust in detail to make sure that you understand your NFA Trust; what your duties and responsibilities are; answer any questions which you may have and what options and flexibility you have in operating and managing the Trust. We believe that this personal attention is important in designing a properly drafted NFA Trust and providing you with all necessary information which you should have in operating and managing your NFA Trust in accordance with the law. We also provide follow up support as needed.
Our NFA Trusts also allow the Trust to own non-NFA firearms, magazines, ammunition and other firearms related items.
NFA Trusts provide greater flexibility than individual ownership of NFA assets in three important respects:
- NFA Trusts allow the individual setting up the Trust, otherwise known as the “Settlor” to appoint additional temporary Co-Trustees, who would also be authorized to use the NFA assets; and
- NFA Trusts provide for the appointment of beneficiaries upon the death of the Settlor who is also the Primary Trustee of the NFA Trust, thus enabling the Settlor to pass on the NFA Trust and its NFA assets to his or her heirs, who would then become the Primary Trustees without having to go through the formal transfer process or pay any transfer taxes to pass on the NFA assets after death. The NFA Trust can then also continue for generation after generation.
- As most of you know, the ATF has enacted new regulations that will impact NFA Trusts and Gun Trusts and as of July 13, 2016. These regulations are known as “Rule 41F”. Under Rule 41F, “Responsible Persons” of NFA Trusts will have to submit additional information for any NFA Items which the Trust purchases on or after July 13, 2016. “Responsible Persons” include, in essence, all Trustees of an NFA Trust. That is, anybody who has the ability to buy, sell, possess or use any NFA Items in the NFA Trust is a “Responsible Person” under Rule 41F. The term “Responsible Person” does not include beneficiaries, unless the beneficiaries are specifically given the authority to buy, sell, possess or use the NFA Items owned by the Trust.
On or after July 13, 2016, when the NFA Trust is purchasing a new NFA Item, the Form 1 or Form 4 Application will also need to include:
- For each Responsible Person:
- (2) FD-258 fingerprint cards;
- A 2″ x 2″ photograph taken within the last year in which the Responsible Person is facing straight at the camera, the head of the Responsible Person filles at least 90% of the 2″ x 2″ photograph and is not cut off on the top, bottom or sides;
- ATF Form 5320.23, a completed NFA Responsible Person Questionnaire. This Form includes the Responsible Person’s full name, position as Trustee, Social Security Number (optional), home address, date and place of birth and nationality.
- Provide CLEO Notification. Prior to submitting the Form 1 or Form 4, the Chief Law Enforcement Official (“CLEO”), such as the County Sheriff or District Attorney, must receive a completed copy of the Form 1 or Form 4 Application and the Forms 5320.23 from all “Responsible Persons” of the Trust.
The foregoing new Rule 41F Requirements are in addition to submitting a complete, signed, witnessed and notarized copy of the Trust document, the Form 1 or Form 4, as the case may be, and the Certification of U.S. Citizenship Form (Form 5330.20, if required).
If you already have an NFA Trust and do not purchase any new NFA Items on or after July 13, 2016, you do not need to comply with the Rule 41F additional requirements. As such, unless and until the Trust purchases a new NFA Item after July 13, 2016, no fingerprints, photographs, or Forms 5320.23 need be filed, nor does the CLEO of your jurisdiction need to be notified of anything.
Also, simply adding or removing Trustees after July 13, 2016, does not trigger the need to do fingerprints, photographs, Forms 5320.23 or CLEO Notification. It is only when the purchase of a new NFA Item occurs, such as on a Form 1 or Form 4, that Rule 41F Requirements regarding submitting this additional information applies.
We hope you find this information useful. We want to make sure that you comply with the law at all times. If you need the services of an experienced attorney to prepare your NFA Trust, we would be honored to serve you. Please see our website at www.shovlinlaw.com for more information.