NFA Trusts

Why Do You Want A Gun Trust? - As A Comprehensive Management System For NFA Weapons

The National Firearms Act (NFA) regulates the possession, use, and transfer of several different types of weapons. These weapons are technically known as “Title II” weapons and include machine guns, short-barreled rifles and shotguns, suppressors, destructive devices, and Any Other Weapons (AOWs). In Utah it is legal to own and use suppressors, destructive devices, and AOWs as long as the NFA regulations are followed.

Under the NFA there are two ways to acquire Title II weapons, individually or through an entity. To obtain these items as an individual, a person must submit fingerprints, a photograph, pay the $200 application fee/tax, and obtain the signature of the Chief Law Enforcement Officer (CLEO) in the jurisdiction in which they reside.

Even if getting the CLEO signature is easy, individual ownership is not the best way to own Title II weapons. Only the individual whose name the weapon is registered to will be entitled to use the items. Many firearms attorneys have argued that the ATF defines the term “unauthorized transfer” broadly and depending on the circumstances, may include handing a Title II weapon to a friend at the firing range or even allowing a spouse to have the combination of the safe where the Title II weapons are stored.

As a result of the drawbacks of individual ownership combined with the CLEO non-participation in the application process, many gun owners have resorted to forming an entity to purchase and hold Title II weapons. There are several advantages to using an entity to purchase and hold NFA items:


• No fingerprints are required.
• No photographs are required.
• No CLEO signature is required.
• In contrast to individual ownership, multiple people may use the weapons.

The question then becomes which type of entity is best to hold Title II weapons. The answer is a GunDocx™ firearms trust.

Corporations, LLC’s, and non-profit corporations can all be used to obtain Title II weapons. The problem with these entities is that they all require fees with the state. You must pay an initial fee to form the entity and a yearly fee to maintain it. Further, these types of entities are designed to earn money not to hold, share, and distribute assets.

A trust does not require any fees with the state. Because trusts are primarily an estate-planning tool, they are designed to hold, share, and distribute assets. While it is true that a person could use a free trust provided by a gun shop (which clearly meets the definition of “unauthorized practice of law”) or download one from a discount online source to obtain NFA weapons, these products do not protect a person’s family and friends adequately as the trustees may actually be directed to take actions which may constitute a felony under the law.

THREE LEVELS OF GUN TRUST PLANNING

Bronze - basic version, designed for simple purchase of a Title II weapon. Allows for designation of death beneficiaries and successor trustees. Permits sharing of NFA weapons through "Limited Trustee" designations

Silver Edition - most popular, designed to allow sharing while avoiding the "accidental felony". Manages both NFA and non-NFA weapons. Permits sharing of NFA weapons through "Limited Trustee" designations and full Co-Trustee appointments, if desired. Also can structured for spousal planning, if client is married, eliminating the necessity of transfers between client and surviving spouse

Gold Edition - customized version for client with unique concerns, multi-generational planning, asset protection planning, charitable gift planning or multi-state situations


A GunDocx™ firearms trust is designed for one purpose and one purpose alone, owning, enjoying, and eventually distributing firearms, ammunition, and accessories. Typically, a firearms collection is the product of one spouse’s interest. The other spouse tolerates this interest, but does not care nearly as much about the items that have accumulated. Due to death or disability, the disinterested spouse or other family member may be forced to manage and/or distribute the collection. Because of the vast amount of federal and state regulations pertaining to both NFA and non-NFA weapons, a disinterested spouse may make a mistake as to the applicable laws. A violation of the applicable laws usually results in the commission of a felony.

Because a GunDocx™ firearms trust is designed with this scenario in mind, there are detailed instructions to guide a trustee in handling the assets as well as an overview of applicable laws and regulations.

A GunDocx™ firearms trust is also designed to allow for multiple users of the items held by the trust. This is in direct contrast to a standard/generic revocable living trust. The GunDocx™ trust specifically allows for any named trustee, successor trustee, and any named beneficiary to have the ability to use the trust assets. There is even a provision that will deem any person that you are shooting with a beneficiary of the trust. The trust also allows for the formal appointment of beneficiaries for a limited duration with a set expiration date. An “automatic beneficiary” and a “limited duration beneficiary” have no rights for inheritance unless they are also listed as a “remainder beneficiary.”

A GunDocx™ firearms trust also has many standard trust features such as avoiding the probate process for your firearms and the public record that it would create. There is also the ability to create and update a tangible personal property memorandum which grants different people specific items of a collection.

If you have any questions or would like to learn more about a GunDocx™ firearms trust, please do not hesitate to contact us.

Check your Homeowner's Insurance! It is likely limited to $1,500 - $2,500 in total coverage for your weapons! Ask us about insuring a firearms collection up to $5 million in value, even without scheduling!