Gun Trusts

NFA Firearms Trusts / “Gun Trusts”

Firearms Trusts, also knows as “Gun trusts,” deal with ownership of firearms subject to strict Federal and state regulations. Gun Trusts make it easier to possess firearms after the owner passes away and protect their heirs from unintentionally breaking gun laws.

Gun trusts are typically used for firearms covered by the National Firearms Act of 1934 (NFA) and its later revision, Title II of the Gun Control Act of 1968, including: fully automatic machine guns; suppressors/silencers; short-barreled rifles and shotguns; certain large caliber weapons and explosives (e.g. grenades); and a broad category called A.O.W. (stands for “Any Other Weapon” – e.g., unusual items like pen guns). NFA weapons need to be registered with the Bureau of Alcohol, Tobacco, Firearms, and Explosives (BATFE, often referred to as the “ATF”), and may only be possessed and used by the registered owner.

Gun Trust Benefits

1. Up to three persons, including the owner of the trust, may possess and use weapons held by the trust. If a gun trust is properly set up to allow for beneficiaries and/or co- or successor trustees, other persons may be allowed to legally possess or use the firearms held in trust.

2. Gun trusts avoid probate. Firearms held in trust do not require probate at the owner’s death.

3. Avoid the requirement of having a CLEO (Chief Law Enforcement Officer). When one purchases an NFA item individually, they are ordinarily required to visit their local CLEO’s office for fingerprinting and approval. Persons who wish to avoid this requirement may acquire NFA items using a gun trust rather than individually.

4. Guns may be kept in trust even after the owner’s death. This enables the grantor/owner to pass directly leave guns held in trust to beneficiaries of their choice. In addition, gun trusts give the heirs/beneficiaries all of the same benefits enjoyed by the grantor/owner during their lifetime.

5. Gun trusts make the job of estate executors easier. Executors unfamiliar with rules surrounding NFA weapons can inadvertently violate criminal laws by sending guns to states where it is prohibited, transferring guns without following the proper steps beforehand, or giving guns to persons not legally allowed to own them. Under gun trusts, the trustee is in charge of trust assets, not the executor.

Gun Trust Cost

Gun Trusts can cost as little as $80.00 USD to over $1,000.00 USD, depending on the complexity of the trust. Simple, straightforward Gun Trusts with one owner and two additional beneficiaries typically cost around $200.00 USD, although as with any Estate Planning document, be wary of discount form documents (i.e., “plug and chug”) that, while cheap, may not meet your needs.