Gun trusts
What is a Gun Trust? How might it be beneficial for me?
A gun trust is a type of management trust that oversees and regulates the ownership and transaction of firearms included by the National Firearms and Gun Control Act.
When the owner of a firearm, or of several firearms, passes away, a gun trust can be used to ease the process of transferring the firearms to heirs. This practice is typically used for firearms that fall under the National Firearms Act of 1934 (NFA) and the succeeding Gun Control Act of 1968. Some general firearms include fully automatic firearms, short-barrel shotguns, sound suppressors, short-barreled rifles, etc.
For an individual to own an NFA weapon, they have to register said weapon with the Bureau of Alcohol, Tobacco, Firearms, and Explosives (the “ATF”). This is designed so only one owner can possess their weapon, and they are required to pay a $200 tax. This is a form of federal regulation on gun ownership, though different states may have harsher restrictions on what type of weapons are allowed.
A gun trust specifically deals with NFA weapons due to their ability to bypass certain regulations and provide benefits. The primary benefit is that a gun trust can allow several beneficiaries of the trust to possess and use the weapon—all the trustees are included. Not every beneficiary is required to register under the ATF and pay the $200 tax. However, the trustee must be eligible to possess the firearm under federal, state and local laws and be knowledgeable about firearm laws and regulations. Some states may require a background check. The gun trust is not a pass-through for those who otherwise may not be eligible to possess or use a firearm. The beneficiaries of the gun trust must also be eligible to possess the firearm under federal, state, and local laws if provided rights of possession and use of the firearm under the terms of the trust.
Other general benefits include avoiding probate, avoiding signature requirements, and privacy in gun ownership. This is a type of legal instrument that you may want to use when considering the transfer of your weapon after your death.