PBA Tip of the Day brought to you by James Carroll, III with Carroll Law Firm, PLC (623) 551-9366.
What is an NFA Trust? Jim has the answer!
The National Firearms Act, or NFA, created a restriction on the ownership of certain types of weapons, specifically those considered to be Title II weapons. Examples of Title II weapons include machine guns, suppressors, short-barreled rifles, short-barreled shotguns, grenades, etc. Owners of such weapons must register their weapon with the Bureau of Alcohol, Tobacco, Fire Arms, and Explosives (BATFE), pay a required tax, and be approved for ownership. Unfortunately, after all the trouble people take to acquire these weapons, they are unable to pass such weapons on as gifts or to heirs or beneficiaries after their death; instead, ownership of the weapon will revert to the state. However, many people do not realize this and inadvertently break the law when taking ownership of a deceased family member’s Title II weapons.
One way people can acquire these weapons for a longer timeframe or for their beneficiaries and heirs is by setting up an NFA Trust. This type of Trust titles the weapon into the Trust; therefore, even if the original owner passes away, the current Trustees of the Trust can still legally use and possess the weapon. It provides a legal way to pass on these restricted weapons.