Gun trusts are commonly used for weapons that are regulated by the National Firearms Act of 1934 (“NFA”) and Title II of the Gun Control Act of 1968, but can also be used for all firearms. They are a useful tool in dealing with federal transfer requirements and estate administration after the owner’s death.
NFA weapons include suppressors, short-barreled rifles, machine guns, and others. To transfer an NFA weapon to another person or entity, the owner must get approval from the ATF and pay a tax of $200. Once it has been transferred to the gun trust, each trustee will have the right to possess or use the trust firearm. Individual states also have separate laws pertaining to NFA weapons and the Franchise & Business Law Group helps our clients to be compliant.