A Gun Trust is a legal entity that allows firearm owners to manage and transfer National Firearms Act (NFA) regulated firearms, such as suppressors, short-barreled rifles, and machine guns, while ensuring compliance with federal laws.
A key advantage of a Gun Trust is the ability to appoint co-trustees, granting multiple individuals’ legal access to the trust’s firearms. Co-trustees play a crucial role in ensuring compliance with ATF regulations while allowing designated individuals to lawfully possess and use the firearms.
Here’s what you need to know about the role, responsibilities, and legal impact of co-trustees in an NFA Gun Trust.
1. What is a Co-Trustee in a Gun Trust?
A co-trustee is an individual appointed by the trust’s grantor (the person who creates the trust) to help manage and legally possess firearms held within the trust. Unlike a beneficiary, who may eventually inherit firearms but cannot legally possess them while the grantor is alive, a co-trustee can legally use, store, and transport NFA-regulated firearms without additional ATF approvals.
Key Benefits of Co-Trusteeship:
✔ Legal Access – Co-trustees can handle and use NFA items without requiring a personal tax stamp or registration.
✔ Flexibility – Multiple individuals can lawfully possess and transport firearms, ensuring compliance while allowing shared use.
✔ Continuity – Co-trustees can help manage the trust over time, ensuring smooth estate planning and firearm succession.
2. Legal Responsibilities of Co-Trustees
While being a co-trustee comes with benefits, it also comes with significant legal responsibilities. Co-trustees must comply with:
Federal & State Firearm Laws
✔ Follow ATF regulations on the possession, storage, and transport of NFA firearms.
✔ Understand state and local firearm laws, which may impose additional restrictions.
Compliance with ATF Rule 41F
✔ Background checks, fingerprinting, and photographs are required for all responsible persons in an NFA Trust (including co-trustees) when adding new firearms.
✔ Violations or non-compliance can result in criminal penalties for both the co-trustee and the grantor.
🚨 Key Consideration: If a co-trustee violates NFA laws, the trust owner (grantor) may also be held liable.
3. Limitations & Restrictions on Co-Trustees
While co-trustees are granted access to the trust’s firearms, their powers can be limited by the trust’s grantor.
✔ The trust document can restrict co-trustees from:
- Adding or removing assets from the trust.
- Making legal changes to the trust’s structure.
- Transferring firearms to unauthorized individuals.
✔ The grantor can also set conditions on co-trusteeship, such as:
- Temporary co-trustee status (for a specific period or purpose).
- Geographic restrictions on firearm possession.
📌 Key Takeaway: Clearly defining a co-trustee’s role in the trust document ensures firearms are handled responsibly and in compliance with the law.
4. Estate Planning & the Role of a Co-Trustee
A properly structured Gun Trust ensures a smooth transition of firearms to beneficiaries after the grantor’s passing.
✔ Successor Trustee Role – In some cases, a co-trustee may become the successor trustee upon the grantor’s death, allowing continuity of firearm ownership within the trust.
✔ Avoids Probate Issues – Since NFA firearms cannot be transferred through a traditional will, a Gun Trust simplifies inheritance and legal possession.
🚨 Warning: If a co-trustee is later removed from the trust, they must return all trust property and no longer possess any NFA-regulated items.
5. How ATF Rule 41F Affects Co-Trustees
Prior to ATF Rule 41F (effective 2016), co-trustees were not required to submit fingerprints or undergo background checks.
Changes Under ATF Rule 41F:
✔ All “responsible persons” in a Gun Trust (including co-trustees) must now submit:
- Fingerprinting & Photographs
- Background Checks (when adding new firearms to the trust)
✔ Co-trustees can be removed before submitting a Form 1 or Form 4 application to simplify the approval process.
✔ Co-trustees added later must undergo background checks before being reinstated in the trust.
📌 Key Takeaway: While Rule 41F added new requirements, it did not eliminate the benefits of appointing co-trustees.
6. When & How to Remove a Co-Trustee
A grantor has full authority to add or remove co-trustees at any time through a trust amendment.
✔ You may want to remove a co-trustee if:
- They move to a state where NFA ownership is restricted.
- They fail to comply with ATF regulations.
- You want to streamline the approval process for adding new firearms.
🚨 Important: If a co-trustee is removed, they must return all firearms in the trust immediately.
Conclusion: Should You Appoint a Co-Trustee in Your Gun Trust?
A co-trustee can be a valuable addition to a Gun Trust, allowing multiple individuals to legally possess and use NFA firearms. However, appointing a co-trustee comes with legal responsibilities—both for the individual and the grantor.
✅ Key Takeaways:
✔ Co-trustees can legally possess NFA firearms without needing their own tax stamp.
✔ They must follow all ATF regulations and submit background checks under Rule 41F.
✔ The grantor controls their powers and responsibilities through the trust document.
✔ Co-trustees may transition to successor trustees, helping with estate planning.
✔ Removing a co-trustee requires returning all firearms to the trust.
🔹 Thinking about setting up a Gun Trust or appointing co-trustees? Work with an experienced gun trust attorney to ensure your trust is legally compliant and properly structured.