Gun Trusts in Texas
Mark Toronjo is an avid sportsman and shooter. He has been shooting and collecting firearms for most of his life. He is a strong supporter and believer in the Second Amendment. As a strong advocate for the Second Amendment Mark is always looking for ways to use his skills to help citizens exercise their rights to the fullest extent. It is for this reason that he began drafting NFA Trust.
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Effective July 13, 2016, all “responsible persons” will be required to fill out Form 5320.23 and submit fingerprint cards to the local CLEO. All responsible persons are considered individuals who have the authority to direct the management and policies of the Trust and who have the power to receive, possess, ship, transport, deliver, transfer, or otherwise dispose of a firearm for, or on behalf of, the trust. (Visit the ATF Website for more information)
What is a Gun Trust?
A Trust is a legal entity that is designed to allow third parties, typically known as trustees, to hold property on behalf of beneficiaries. Trusts are commonly used as part of a person’s estate management, to grow investments, preserve the assets for future generations and protect assets from the reach of the creditors of the beneficiaries.
A “Gun” Trust, sometimes referred to as NFA Trusts, is a Trust that has been specifically designed to own property that is regulated by the National Firearms Act. These are Title II (Class 3) Firearms, such as machine guns, short barreled rifles, short barreled shotguns, suppressors, etc. A Gun Trust has all of the same benefits as a normal trust, but contains special rules and provisions to ensure that the trustees of the trust and other responsible parties do not run afoul of the National Firearms act and become “accidental felons.”
A “Gun” Trust, sometimes referred to as NFA Trusts, is a Trust that has been specifically designed to own property that is regulated by the National Firearms Act. These are Title II (Class 3) Firearms, such as machine guns, short barreled rifles, short barreled shotguns, suppressors, etc. A Gun Trust has all of the same benefits as a normal trust, but contains special rules and provisions to ensure that the trustees of the trust and other responsible parties do not run afoul of the National Firearms act and become “accidental felons.”
Benefits of a Gun Trust:
- Trusts are private - Trusts are not filed with any Federal, State, or local governments. They are not required to file yearly accounting statements, disclose assets, or disclose the trustees or beneficiaries of the trust.
- Trusts allow the assets to pass to you beneficiaries outside of probate - When you pass all of your property must be distributed through a legal process known as probate. This requires an inventory of all of your personal property to be filed in the court records, which are public records. It also creates a high degree of liability for your executor to ensure that they properly transfer the NFA items in accordance with State and Federal law. Your Gun Trust should be set up to address the distribution of the NFA assets after your death so that they do not pass through probate and therefore never become public.
- Gun Trusts Allow You to Protect Your Collection - Gun trusts can be set up in such a manner that it allows you to protect your entire firearms collection, not just NFA items, from seizure by your creditors and the creditors of your beneficiaries. This ensures that the collection is preserved for the future generations of your family to use and enjoy.
- Gun Trusts Allows Multiple Authorized Users - Multiple users authorized under the gun trust can use and possess the NFA items without committing a felony. If you are married and you purchase a suppressor as an individual, you alone are allowed to have possession and control of that suppressor. If you leave it accessible in the home or in the car and your spouse has access to it, they may be prosecuted for “constructive possession” of a firearm, which is a felony. By having your spouse and close family and friends as trustees on your gun trust you avoid that problem entirely since everyone listed will be allowed to have control and possession of the NFA item.
