What Is a Gun Trust and How Does It Protect Your Firearm Estate?

According to Pew Research, 30 percent of adults in the United States report owning a firearm. Gun sales have risen in recent years, especially during the Coronavirus pandemic. While many own weapons for protection and hunting, 6 percent possess guns that are family heirlooms.

If you own a firearm with monetary or sentimental value, you may wonder how to transfer ownership to your loved ones after you die. Beyond creating a will, special arrangements like a gun trust may be necessary.

What Is a Gun Trust?

A gun trust, also known as a firearm trust or NFA trust, is a legal entity created to hold and manage guns. A gun trust helps you pass down firearms to your loved ones while shielding them from probate. It can also allow multiple individuals to share ownership

Understanding Trusts

A trust is a legal arrangement where the original owner (the grantor) designates one or more beneficiaries to receive an asset. A trustee manages the property held in trust.

Trusts can shelter many types of property from probate, including real estate, bank accounts, and personal possessions like jewelry or firearms.

Trusts may be revocable, meaning the grantor can modify or terminate them, or irrevocable, meaning they cannot be undone. Gun trusts can be either revocable or irrevocable.

The National Firearms Act

Creating a gun trust can make it easier for gun owners to comply with the National Firearms Act (NFA), particularly when multiple people want to use the weapon and when the owner intends to transfer ownership.

Congress passed the NFA in 1938 to curb the sale of firearms. The Act imposes specific requirements and regulations on firearms classified as Title II weapons, which include the following:

• Machine guns
• Short-barreled shotguns or rifles (SBSs and SBRs)
  Silencers (silencers)
• Destructive devices such as grenades
• Firearms over .50 caliber, per the Gun Control Act of 1968

The Bureau of Alcohol, Tobacco, Firearms, and Explosives requires individuals intending to own an NFA weapon to complete an application and registration. Registration includes paying a tax and obtaining a tax stamp for each NFA firearm. Those purchasing or possessing NFA firearms must undergo a background check and provide fingerprints as part of the application process. The bureau denies any applications violating federal, state, or local laws.

Benefits of Gun Trusts

Gun trusts have several benefits.

• Gun trusts offer several key advantages:
  • Avoid probate: Transfer firearms without court supervision, reducing challenges to the transfer.
  • Continued ownership after death: Trusts can be structured so loved ones avoid transfer fees, making possession easier.
  • Multiple beneficiaries: More than one person can own and use the weapon legally.

Trustee Responsibilities and Legal Obligations

While gun trusts provide benefits, trustees must still comply with all federal, state, and local firearms laws.

Before 2016, only one trustee needed to register. However, the 2016 amendment requires all trustees and beneficiaries to register with authorities.

According to the State Bar of Wisconsin, trustees must:

• Notify local law enforcement of all trustees and firearm locations

• Provide fingerprints and photos

• Pass background checks

Trustees must be legally eligible to own firearms. Felons, dishonorably discharged military personnel, and incapacitated individuals cannot possess guns or be beneficiaries of gun trusts.

Failing to consider beneficiaries’ eligibility can result in criminal liability for all parties involved. Estate planning attorneys should address scenarios where beneficiaries lose firearm eligibility.

Consult Your Attorney

While gun trust templates are available online, working with an attorney ensures your trust complies with all legal requirements. Mistakes can have serious consequences.

Contact your Florida estate planning attorney today to discuss creating a gun trust as part of your estate plan.