Monday, July 18, 2016

The Firearm Blog Posts an Informative Q&A with the ATF on the effects of 41F and NFA Gun Trusts

The Firearm Blog Posts an Informative Q&A with the ATF on the effects of 41F and NFA Gun Trusts
By: Zach McCormick
July 18, 2016

One of my favorite firearms blogs, (The Firearm Blog) has posted a very informative "Q&A" with an ATF NFA Branch Agent that discusses, among other things, what has changed when it comes to how to use trusts to hold NFA items now that the new "41F" rules have gone into effect.
It is definitely worth a read through if you are considering using a trust to lawfully acquire new NFA property. However, the summary of the article is that basically everyone that is named in a trust who can possess trust property must submit fingerprints and photographs in duplicate and they must provide copies of these documents to their chief law enforcement officer. The definition of who constitutes a chief law enforcement officer now includes the State Attorney's Office as well as the Sheriff or Chief of Police in the locality within which the citizen resides. However, it is important to note that these new rules are so new that the various agencies may be unfamiliar with them at first and it may be a good idea to reach out to an employee of the department that the documents are being sent to before sending them to help prevent misunderstandings.
There is also still some confusion as to who exactly has to submit prints because although the new rules specifically exempt 'beneficiaries' from the photo and printing requirement, the definition of a 'responsible person' essentially includes anyone who has a present interest. This could include a "beneficiary" who can enjoy the benefit of the trust prior the death of the settlor and/or trustee. Based upon the responses given by the ATF agent, the likely answer to this question is that everyone has to give their prints and photos. Unfortunately, this will increase the paperwork requirements for the citizen applicant considerably.
At the risk of stating the obvious, the complexity of using a trust to successfully secure a tax stamp has increased (although the benefits of trust are still very much in existence). Therefore, the need to have a properly executed and compiled trust packet is at an all time high. This sentiment is echoed by the ATF agent interviewed by The Firearm Blog as he mentions that getting the documentation right is essentially the only real way to speed up the process of getting the tax stamp back timely. So pay extra attention to compiling the paperwork or else make sure you have a lawyer that knows what they are doing handle the matter for you.

A small bit of good news for those that have completed their NFA collections already is that no further action has been mandated by the ATF to simply maintain a trust that already has tax stamps and NFA property in it.

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