If you are looking to purchase an NFA item, you might be wondering if you should register that item in your individual name or in a trust, and which type of trust is best for you. If the NFA item is registered in your individual name, you are the only person who can possess and use it during your lifetime. Upon your death, the executor of your will would be unable to possess the NFA item, necessitating a local FFL or law enforcement to take possession of the item until a Form 5 transfer could be completed.
During your lifetime, no one else can use the NFA item without you being physically present and within arms’ reach. Due to these restrictions, the best option for registering NFA items is to have the tax stamp issued in a trust name. In a trust, the NFA items can be legally possessed and used by designated Co-trustees, and inherited hassle-free by Beneficiaries. When looking into purchasing a trust the options can be overwhelming, so which type is best for you?
Single Shot v. Unlimited
NFA Lawyers’ gun trusts are unlimited, which means that our trusts are designed to handle all of your weapons and weapons-related accessories. You will only have to acquire one trust from us and use that same trust to register your NFA purchases now and in the future. You also have the option of assigning your non-NFA items to our trust as well. We provide all the paperwork you need to assign each new item to the trust, so you do not have to come back to us and pay any additional fees for each new addition.
Single Shot trusts are designed in a way that each trust can only possess one item. This means that every time you purchase a new NFA item, you will have to purchase another single shot trust to register that item with the ATF. Although a simple solution, it generates a great deal of paperwork and extra expense for large collections.
“Unlimited Single Shot” Trusts
You might run across companies offering Unlimited Single Shot trusts. Although a clever solution to the problems of the single-shot trust, this option does not mean one trust is drafted to contain unlimited items. It is set up so that you will pay a flat fee for as many single shot trusts as you need for each new NFA purchase. Essentially a subscription service, the Unlimited Single Shot trust is still only able to handle one item per trust so you will still be stuck having to obtain a new trust for each and every new NFA item you purchase.
All NFA Lawyers’ trusts are state-specific and personalized drafted by Attorney Dean Phillips with NFA Lawyers in Marietta, Georgia. Performing due diligence on any company that advertises their trusts as “attorney drafted” is a key part of being a responsible owner of an NFA item. Companies often use this description of their trusts, but instead automatically draft them to be sent to you within minutes. Although such a quick turnaround can be is appealing, a computer-generated trust is automatically filled in from the information you supply without careful review of your information. This can lead to mistakes with costly repercussions. When choosing who to draft your trust, your best option is to choose a law firm rather than an online company advertising gun trust services.
NFA Lawyers’ trusts come with all the amendments you will need for the life of your trust, including changes of address, Co-Trustees, and Beneficiaries. At no point will you have to come back to us and pay additional fees for any changes that need to be made to your trust. When choosing which company and which trust is right for you, make sure that you know whether that company offers amendments, if they will be an additional cost in the future, and if changes are even possible with the way the trust is drafted.
As gun trusts become as ubiquitous as other estate planning documents, it is easy to assume they are all the same. The nuances and implications of the possession and inheritance of NFA weapons can be specific to one’s state and even the particular situation of the individual. Using an attorney ensures the validity of the trust and its flexibility to adjust to your life over time.