What is a Gun Trust?
A Gun Trust is a legal document created to allow the ownership of certain firearms or other items that are regulated by the NFA, the federal law that governs the manufacture, possession, and use of certain guns and gun accessories.
The Gun Trust is created by a person referred to as the Grantor.
Once created, the Trust files an application and pays a tax to the ATF to register the NFA-regulated firearm. The Gun Trust cannot take ownership of the NFA-regulated firearm (or transfer an NFA firearm) prior to the approval of the application by the ATF.
The Gun Trust allows the Grantor of the Trust, as well as those individuals named as Trustees, to lawfully use and possess the NFA-regulated firearm. Anyone using or possessing an NFA-regulated firearm or other items without proper registration with the ATF could be guilty upon conviction of a federal felony.
WHY CREATE A GUN TRUST?
There are four benefits to creating a Gun Trust:
When an individual submits an application to the Bureau of Alcohol, Tobacco, and Firearms (ATF) to register a firearm under the National Firearms Act (NFA), only that individual has the right to use or possess the registered NFA firearm. But when a properly drafted Gun Trust applies to the ATF for NFA registration, the GRANTOR PLUS EACH AND EVERY TRUSTEE NAMED IN THE GUN TRUST has the right to use or possess the NFA regulated item upon approval by the ATF.
A single Gun Trust can register multiple NFA-regulated firearms and items.
Even after the death of the Grantor, a Gun Trust allows for multi-generational use of registered NFA-regulated firearms without any new filings to the ATF.
A Gun Trust prevents the need for the Probate to transfer firearms upon the death of the Grantor, since the ownership of the firearm is held by the Gun Trust.
HOW CAN I ADD CO-TRUSTEES TO MY GUN TRUST?
Gun Trust is written so that the Grantor lists him or herself as the
Trust's initial Trustee. Our Gun Trust then gives the Grantor two option regarding
1. The Grantor can name additional Co-Trustees in the Trust document when
the Trust is initially prepared. This will allow these Co-Trustees to use and
possess the NFA-regulated firearm once the firearm is registered to the Trust.
2. The Grantor can choose not to list or name any Co-Trustees in the initial Trust
document. Co-Trustees are appointed by the Grantor after the ATF approves the
registration of the NFA-regulated firearm to the Trust.