Top Five Questions About NFA Trusts

Top Five Questions About NFA Trusts
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)

Bill to Stop ATF Rule 41P Passes House

Bill to Stop ATF Rule 41P Passes House
By: Zach McCormick
6/6/15


According to an article posted on the American Suppressor Association Blog a recent funding bill passed the House of Representatives with an amendment that would block the much-reviled "41P" ATF proposed rule change. Naturally, this is merely the first step towards protecting the status quo as it pertains to NFA trusts (aka gun trusts) and there is still a long way to go before such protections become law.

 As a brief refresher, the 41P proposal would, if enacted, created the title of "responsible person" and require that such a person be fingerprinted and would require that a chief law enforcement officer (CLEO) sign off on each trust.

This CLEO provision may be the most offensive term due to the tremendous discretion that it places on these individuals. In areas where CLEOs are opposed to NFA ownership they simply refuse to approve any application. This has the effect of creating a total ban on what would otherwise be lawful possession of suppressors, short barreled rifles and the like.

What is more, contrary to some rumors, it is not permissible for a criminal to use the current trust framework to unlawfully acquire a firearm or NFA item due to the requirement that the FFL conducting the transfer complete an NICS background check immediately prior to the transfer. In fact, the notion that a criminal would go through the hoops of getting a trust to accomplish his criminal intent is so implausible as to be ridiculous.

Florida Says "Yes" To Hunting Suppressed

By: Zach McCormick
11/25/14

It is now legal to hunt using a suppressor in Florida according to the NRA's recent press release. With this change in the law, hunters may finally take advantage of a responsible and respectful method of protecting their hearing.

Someone might argue this is something that should never have even been prohibited in the first place...those people would be correct.

Bill Murray's "St. Vincent" = Time Well Spent

By: Zach McCormick
11/16/14

My Wife and I used to go to the movies all the time but frankly we haven't been drawn to anything lately. That changed last night when we saw "St. Vincent" where Bill Murray and his co-stars really hit a heartwarming little tale out of the park. Everyone did a good job and it all felt "real".

Good writing, cheerful at times but definitely echoing events that could've actually taken place.

Worth the price of admission in my opinion.

ATF Gives Approximate Date For Gun Trust Rule Change

In an article posted by the American Suppressor Association (ASA) on November 4th, 2014 it was reported that the ATF expects to rule on the so called "41p" rule change implemented by Obama's executive order.

It appears that, if the rule change is implemented (and I don't see how it won't be) then one of the primary benefits that gun trusts have provided may be taken away. Specifically, it is now more likely that it will be necessary to get a chief law enforcement officer's signature on any paperwork used to apply for the transfer and stamp.

This is of course simply one more consequence of ceding power to a government that has unquenchable thirst for the same.

As of now it appears that the ATF is predicting the matter will be "heard" around May of 2015. It may be that now is the time to get a gun trust lest it go the way of fully automatic arms pre-86'.

Net Neutrality: A Band-Aid, Not a Cure

By: Zach McCormick
11/12/14

President Obama recently voiced his support for "net neutrality" (the notion that internet providers should not be allowed to prioritize or censor their users content for profit) and encouraged the FCC to support such measures. A proposal that is, not surprisingly, staunchly opposed by internet service providers like AT&T, Comcast and Verizon etc.

The idea misses the bigger picture and affords only a temporary fix to a much more insidious problem. Put simply, the idea that information should be freely transmitted is good but the notion that business shouldn't be able to make money in a free market is bad.

Yet, its not quite as simple as that, because the major internet providers don't exactly live in a "free market". In fact one need only try and get one cable/phone company to give you a quote against another cable/phone company to realize that each has a governmentally enforced monopoly in its own arbitrary and anachronistic territory.

Hence, we would probably be better off with a true free market solution as opposed to intrusive government oversight. In the meantime, net neutrality is the best option we've got for keeping information flowing smoothly.

ATF Publishes 80% Lower Guidelines...Finally

By: Zach McCormick
11/12/14

I saw this on one of my favorite gun blogs "TheFirearmBlog.com" via "Ammoland.com" and I thought it was very useful for anyone who has considered either selling or purchasing an 80% finished lower receiver.

This of course on the heels of the recent ATF raids on retailers selling lower receivers that were 80% (or less) completed in violation of a judge's restraining order.

Its nice to see this agency finally bringing some clarity the issue.