By: Zach McCormick
June 15, 2015
One of the reasons that I take so much time to sit down with my NFA trust clients is that there is a lot of critical information to know when it comes to such matters. I find that many people have very similar questions during the process. Below is a list of the most common questions that I get asked about my NFA trusts (AKA gun trusts).
1. "How does an NFA trust work?"
It is a legal entity that is able to legally hold property that is assigned (given) to it. An NFA trust (if properly crafted) can help a law abiding gun owner acquire NFA items such as suppressors, short barreled rifles and machine guns without having to jump through administrative hurdles such as convincing a chief law enforcement officer to approve of the transfer.
2. "What can I put in my trust?"
The short answer is: Anything you want. The long answer is: Only put NFA items in an NFA trust. The reasons for this are many but the most important reason is that a gun trust's primary purpose is to protect NFA items and not other property. This means that the protections may not be applicable to the property being held in trust. Further, for those concerned with maintaining privacy, the inclusion of non-NFA property in the trust risks exposure of the property to prying eyes
3. "Do I need a new trust for each NFA item?"
No you do not unless you want to. However, one trust is capable of holding a virtually limitless inventory of property. However, there are some reasons why a person might wish to have separate trusts such as lawful asset protection strategies or when contemplating the gift of an NFA item to another eligible person.
4. "How many beneficiaries can I designate?"
As many as you want but just like the old adage says; "just because you can, doesn't mean you should". The more people you give the titled of beneficiary to, the greater the possible complication from misplacement or mistake. It is my position that a beneficiary should be a very trusted person and this by definition tends to limit the number of beneficiaries a small handful of people for my clients
5. "Can I take my suppressor to another state?"
Yes but you must receive prior written approval from the ATF for the specific date range and destination you have in mind. Generally you will be able to secure permission for transport for up to a year at a time but you will need separate forms for each state. What is more, you will need to ensure, prior to transport, that your destination state allows possession and use of the NFA item in question.
You can download the form you will need here: (ATF Application to Transfer Interstate 5320.20)
