What is an NFA Trust?
An NFA trust, also known as a Gun Trust, is a legal entity created specifically to own and manage firearms regulated by the National Firearms Act (NFA). These trusts are primarily used to legally acquire and possess items such as machine guns, short-barreled rifles (SBRs), short-barreled shotguns (SBSs), silencers (suppressors), and destructive devices.
The primary purpose of using an NFA trust is to simplify the process of acquiring and transferring NFA-regulated firearms and accessories, as well as to provide certain benefits and protections to the trust's beneficiaries.
Here's how an NFA trust typically works:
Creation: A trust document is drafted, establishing the trust and naming the trustee(s) and beneficiary(ies). The trustee(s) are usually the individuals who will have legal authority to possess and use the NFA items held by the trust.
Acquisition: The trust, as a legal entity, can purchase NFA items directly from a licensed dealer or individual seller. This bypasses the need for individual background checks and approval from the ATF for each item.
Possession and Use: The trustees named in the trust document have the legal right to possess and use the NFA items held by the trust, provided they comply with all applicable federal, state, and local laws.
Transfer: If the trustees wish to transfer NFA items to another individual, the trust can facilitate this process without requiring individual paperwork or background checks for each transfer.
Succession: The trust document can specify what happens to the NFA items upon the death of the trustee(s), ensuring a smooth transfer of ownership to the designated beneficiary(ies) without the need for probate.
NFA trusts became particularly popular among firearms enthusiasts and collectors because they streamline the process of acquiring and transferring NFA-regulated items while also providing certain privacy and inheritance benefits. However, regulations and requirements surrounding NFA trusts can vary by state, so it's essential to consult with a qualified attorney familiar with firearms law in your jurisdiction before creating or using one.
