Gun Trusts

A firearms trust, also known as a gun trust, is similar to other trusts. Firearms trusts are legal entities created to manage and transfer assets. In this case, the trust is specifically designed to manage and transfer firearms, and in particular, firearms that are regulated under the NFA. This type of trust allows for the possession, ownership, and transfer of firearms in a way that complies with state and federal laws.

Aside from compliance with firearms laws, a firearms trust offers other benefits that firearms owners may want to take advantage of. With a gun trust, firearms owners will have enhanced privacy regarding their firearms ownership and a simplified inheritance process. They will be able to feel confident that their firearms will be passed down and managed legally and responsibly, along with other legal protection.

The National Firearms Act of 1934 is a federal law governing weapons such as machine guns, short-barreled rifles, short-barreled or sawed-off shotguns, grenades, and silencers. These firearms are sometimes referred to as “Title II firearms” or “NFA firearms.”

NFA firearms must be registered with the federal Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) and have a serial number. The registered owner of these firearms is the only individual legally permitted to possess or use them, and if they have not already been registered, it is illegal to own them. Transfers of these weapons requires approval and in most transfers, a tax payment that is usually approximately $200. A firearms trust assists with ensuring compliance with these requirements.

Much like other trusts, a firearms trust is legal documentation. Individuals who are interested in creating a gun trust should consult with an experienced and knowledgeable attorney to ensure that these trusts are properly documented and that they are complying with all state and federal laws regarding both the trust itself and the firearms being transferred into the trust.

Individuals should also note that any firearms that are regulated by the NFA being placed in the trust must be properly registered. Firearms that are not properly registered before the individual’s death cannot be retroactively registered and instead, will require the executor of the estate to contact the local ATF office to arrange to hand over the unregistered firearms. If one of the individual’s heirs is found in possession of the firearm, they can face up to $250,000 in fines and up to ten years in prison. Therefore, ensuring proper registration and placing weapons in a firearms trust can be very important for protecting loved ones.

Yes and no. The Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) does not require formal approval of firearms trusts. However, when a firearms trust is created, the ATF does review it to ensure it complies with the legal requirements for a firearms trust. Specifically, the ATF will look for NFA items and ensure they are in compliance. Once this is confirmed, the trust can move forward with lawful transfers and possession of NFA items without further review by the ATF.

Typically, the rules for who can create, act as trustee, or be a beneficiary of a firearms trust are the same as those for owning firearms in general. For example, convicted felons are prohibited from possessing firearms, so they would be prohibited from being part of a firearms trust.

Individuals under the age of 18, individuals with drug or alcohol dependency issues, individuals with outstanding arrest warrants, or fugitives are all prohibited from owning firearms and would not be able to be part of a firearms trust. Additionally, individuals with mental health concerns that have resulted in their admission to a mental institution or a court order declaring them mentally ill or mentally incompetent are also prohibited from owning firearms and unable to be part of a gun trust.

Like other trusts, a firearms trust must contain provisions explaining how to manage and transfer the assets. While all trusts have certain laws they must comply with, firearms trusts must comply with laws that are slightly more complex. Some of the provisions that are typically included in a firearms trust start with detailed descriptions of any NFA items and all other firearms in the trust, the names of initial trustees and any successor trustees, and beneficiaries of the trust. Guidelines for maintaining, using, and storing the firearms, instructions for the legal transfer of firearms to beneficiaries or trustees, and provisions that help to ensure that all the trust’s actions comply with local, state, and federal firearms regulations are a particularly important part of a firearms trust.

Finally, firearms trusts often include instructions on how to amend or revoke the trust as well as clear directives about how to transfer or sell the firearms after the grantor’s death. If an individual has questions regarding a specific provision they would like to include, they may want to consult with a firearms trust attorney for guidance specific to their circumstances.

A firearms trust trustee has a number of responsibilities. The trustee is required to comply with any reporting requirements with relevant authorities such as the ATF. They are also responsible for managing the trust’s firearms, including acquiring, storing, and transferring them. The trustee must also make sure all activities transactions are compliant with local, state, and federal regulations and keep accurate records of those transactions.

The trustee is responsible for completing all appropriate paperwork and overseeing transfers of firearms to and from the trust legally, and distribute the firearms to the trust’s beneficiariers per the terms of the trust. The trustee and the actions they take play an integral role in maintaining the proper functioning and legal integrity of a firearms trust. The trustee is not required to hold a federal firearms license, but they must be able to legally possess a firearm.

Yes, the trustee and all beneficiaries of the trust will need to pass a background check. Just as with any transfer, purchase, or possession of a firearm, anyone associated with the trust must be legally qualified to possess or purchase firearms. Additionally, if a trustee or beneficiary of the trust loses their eligibility to possess firearms, the trust creator will need to remove them from the trust.

Additionally, changes to the gun trust law in 2016 have created the role of a “responsible person” in a gun trust. A responsible person is an individual who manages the trust, and may be the trust settlor or grantor, trustee, or a beneficiary if the beneficiaries have the authority via state law or the trust’s terms to possess, receive, transport, ship, deliver, transfer, or otherwise dispose of a firearm on behalf for or of the trust. With this change, any responsible person associated with the trust must fill out the Responsible Person Questionnaire (ATF Form 5320.23) and submit the form along with their fingerprints and a photograph to the designated chief law enforcement officer (CLEO).

The purpose of this change is to ensure that everyone possessing NFA firearms, from individual owners to any responsible person under a trust, undergoes the same level of legal scrutiny, as well as reduce administrative burdens. The change also helps to ensure that only those who are qualified to do so can own dangerous firearms.

There are several ways that a gun trust can facilitate the transfer of firearms from the trust creator to trust beneficiaries. First, it allows the legal transfer of the firearms in the trust to beneficiaries without needing to perform individual background checks or find someone with a federal firearms license to facilitate the transfer. This simplifies the process and ensures that all transfers remain compliant with all local, state, and federal laws.

Additionally, the trust allows beneficiaries access to the firearms so they can responsibly use and enjoy them according to the trust terms without interruption and, upon the trust creator’s death, without needing to wait for the firearms to pass through probate. The ability to avoid probate provides greater privacy for the beneficiaries. Finally, because the trust documents provide the legal framework with clear guidelines for the lawful possession and use of the firearms, the risk of unintended firearms laws violations is significantly reduced. This reduces the likelihood of a beneficiary violating a firearms law that could lead to their inability to possess firearms in the future.

There are many regulations and rules that a gun trust must comply with. Some of these rules and regulations are federal, while others are state-specific. Some are even trust-specific.

Background Checks

Beneficiaries of the firearms trust do not need to undergo individual background checks to possess and use firearms registered to the trust, even if those firearms are added after the beneficiary was included in the trust. However, to be included in the trust, beneficiaries and all other parties must undergo the federally required background check to ensure they can legally possess and use firearms.

Reporting Requirements

Certain trust activities or changes in trustees or beneficiaries may require reporting to the ATF. There may be other reporting requirements that the trust may need to meet as well. Both the trust settlor and the trustees should ensure they fully understand any reporting requirements the trust must meet.

Firearm Ownership Regulations

A firearms trust must comply with all federal, state, and local regulations regarding firearm ownership. This includes complying with all regulations regarding machine guns, short-barreled rifles, silencers, and other firearms regulated by the NFA.

State-Specific Regulations

Ohio firearms trusts must also comply with all Ohio firearms regulations. Additionally, if an individual is planning to move from Ohio to another state with a gun trust, or from another state to Ohio, they will likely wish to consult with a local attorney in the new location to create a new firearms trust that complies with state laws. Individuals may want to have this consultation before they move so that they can ensure that they do not unintentionally violate any state or federal laws by moving their firearms across state lines without the proper protections in place.

Trust Storage and Use Terms

Firearms trust documents typically contain provisions indicating the terms of firearms storage and use in the trust. The trust must comply with these provisions and all parties associated with the trust must be aware of and comply with these provisions when using and storing the firearms. These guidelines ensure the safe storage, lawful use, and responsible handling of firearms and protects everyone involved from violating any gun laws.