Gun Trusts & ATF 41F Ruling

ATF Logo

As of July 13th, 2016, BATFE Rule 41F went into effect.  While this ruling did change the process of purchasing NFA-regulated items, we are dedicated to help you understand and navigate the new requirements.  We are your one-stop shop to purchase a suppressor or short-barreled rifle.  In our store, we will complete all your necessary ATF forms as well as complete your finger print cards and passport photo.  All the knowledge and resources you need are in one convenient place.  Click HERE to learn more.

 

Here is a summary of the important items from Rule 41F: (if you want to read all 248 pages, knock yourself out by clicking HERE)

  1. BATFE Rule 41F went into effect on July 13, 2016.  As a result, all NFA regulated items purchased after this date must following the new rules of ownership.
  2. The Chief Law Enforcement Officer, (CLEO), signature will no longer be required for any applications, even individuals.   Instead, the FFL Dealer is required to notify the local CLEO of the purchase, regardless of whether it’s an individual, trust, corporation or partnership.
  3. Fingerprints for every responsible person are required for all items being registered, including purchases using a trust, partnership or corporation.
  4. There is a 2-year exemption after any approval by the ATF.  Once you have been approved by the ATF for the purchase of an item under the new rule, you will have a two year window where no fingerprint cards or passport photo are required.  Upon the expiration of this two year window, you will need to submit fingerprint cards and passport photo on any new registration.
  5. If you register using a trust, partnership or corporation, you will NOT be required to notify the NFA Branch of changes after an approval.  Including the additional or removal of a responsible person after getting an approval.
  6. EVERY RESPONSIBLE PERSON must submit fingerprint cards and a passport photo.  Currently, the new rule defines a Responsible Person as:
  • In the case of a trust, any individual, including any grantor, trustee, or beneficiary, who possesses, directly or indirectly, the power or authority under any trust instrument or other document, or under State law, to receive, possess, ship, transport, deliver, transfer, or otherwise dispose of a firearm;
  • In the case of a partnership, any individual, including any partner or manager, who possesses, directly or indirectly, the power or authority under any contract, agreement, article, certificate, bylaw, or instrument, or under State law, to direct the management and policies of the partnership to receive, possess, ship, transport, deliver, transfer, or otherwise dispose of a firearm for, or on the behalf of the partnership;
  • In the case of an association, any individual, including any member, officer, director, board member, owner, or manager, who possesses, directly or indirectly, the power or authority under any contract, agreement, article, certificate, bylaw, or instrument, or under State law, to direct the management and policies of the association to receive, possess, ship, transport, deliver, transfer, or otherwise dispose of a firearm for, or on the behalf of, the association;
  • In the case of a company (including a Limited Liability Company (LLC)), any individual, including any member, officer, director, board member, owner, shareholder, or manager, who possesses, directly or indirectly, the power or authority under any contract, agreement, article, certificate, bylaw, or instrument, or under State law, to direct the management and policies of the company to receive, possess, ship, transport, deliver, transfer, or otherwise dispose of a firearm for, or on behalf of, the company; and
  • In the case of a corporation, any individual, including any officer, director, board member, owner, shareholder, or manager, who possesses, directly or indirectly, the power or authority under any contract, agreement, article, certificate, bylaw, or instrument, or under State law, to direct the management and policies of the corporation to receive, possess, ship, transport, deliver, transfer, or otherwise dispose of a firearm for, or on behalf of, the corporation.”

 

HERE ARE SOME FREQUENTLY ASKED QUESTIONS ABOUT GUN TRUSTS:

Can existing items be transferred into my new Trust?

Yes, but because ownership of the NFA item is being transferred from you, as an individual, to the trust, you must file a Form 4 and pay the $200 tax. Fortunately, since you are already the owner, you can maintain possession of the item while the transfer is processing.

Are there limitations as to who I can add as a trustee?
Yes. If an individual is prohibited by federal, state, or local law from possessing a silencer due to age, felony convictions, or other reasons, they cannot be added as a trustee. Only individuals legally allowed to purchase and possess NFA items may be added to the trust.

What if I want to add my child to my trust?
So long as he or she is of the legal age as defined by your state to possess a silencer and can sign and have their signature notarized, they can be added to your trust. If they are below the legal age for NFA item possession in your state, you may still add them as a beneficiary, not a trustee.

Can I add someone who lives out of state as a trustee?
Once you have added them to the trust, the new trustee will need to sign the Declaration of Appointed Co-Trustee and have his signature witnessed by two individuals.  These individuals cannot be the Grantor, Beneficiaries or other Co-Trustees.

NOTE: Adding someone who lives in a non-NFA-friendly state to your trust does not make them eligible to possess NFA items in that state. They can, however, possess the items while they are in an NFA-friendly state. Local law supersedes federal law in this regard; obey all local laws.

Is there a limit to the number of people I can add to my trust?
There is no limit to the number of additional trustees you can add through amendments to your trust.

How do I make an amendment to my Trust?
At some point you will no doubt need to add an item, add a trustee, remove a trustee, or make other adjustments to your trust. To do so, type up the changes and label them accordingly (e.g. Amendment 1, Amendment 2, etc.). After each Amendment, note that “The trust continues from original date of creation” so that it is clear all preceding information is still relevant. We recommend that you then print out the trust and have each amendment notarized, however, specific notarization requirements vary by state.

States in Which You Must Register the Trust at a Courthouse:
Alaska, Colorado, Hawaii, Idaho, Michigan, Missouri, North Dakota

States in Which Registering the Trust at a Courthouse is Optional:
Florida, Maine, Nebraska

***All states not listed above only require the Trust be notarized.

States in Which Notary Requires Witnesses:
Alabama, California, Connecticut, Delaware, Florida, Georgia, New York, Louisiana, & South Carolina

 

Modern Warriors
JUST A GROUP OF GUYS WHO SUPPORT THE 2ND AMENDMENT

We started Modern Warriors and Alice Firearms for the sole purpose of providing a less expensive way to enjoy our love of buying and shooting some really cool stuff. What started as a hobby has turned into a business where we have developed the experience and ability to help you enjoy our same hobby and save you money in the process.

We specialize in tactical weapons, including suppressors, short barrel rifles and full auto weapons. We have routine experience in shooting the weapons we carry, so if you want our opinion on how a weapon operates, we will gladly provide it. We also have expertise working with licensed professionals in setting up gun trusts, which is an ideal way of purchasing, owning and operating any weapon restricted by the National Firearm Act. Don’t let the word “trust” scare you. It is very easy to set one up if you have the right help.

Learn More