New NFA Rules Began on July 13th. Do I Still Need a Gun Trust?

Many are confused and even more have questions about NFA Gun Trusts now that ATF 41F has gone into effect.  ATF 41F stipulates that subsequent to July 13th, all responsible persons named in a trust must now undergo federal background checks and complete required federal paperwork, which must be forwarded to a CLEO.  Guidance through the attorney network of North Carolina Gun Trust can make the process easier and eliminate much, if not all, of the anxiety and stress.

Chief Law Enforcement Officer certification has been replaced with CLEO notification. So the new regulations only require CLEO notification instead of CLEO permission. All responsible persons must submit a completed copy of Form 5320.23, a NFA Responsible Person Questionnaire and must undergo a background check, submit two FBI fingerprint cards, and two photographs. The documents are forwarded to the area’s chief law enforcement officer of the locality in which the responsible person resides. This is a notification regulation which requires every “responsible person” associated with a gun trust (the gun trust grantor(s) and trustee(s)) to notify his or her local Chief Law Enforcement Officer. Though, obtaining a CLEO signature is no longer part of the process, many are discovering it has not, unfortunately, been simplified.

ATF 41F does amend how one makes or transfers NFA items. The ATF lists the primary change as redefining the term “responsible person” in reference to a trust, partnership, association, company or corporation. Responsible persons are considered: Settlors/Grantors, Trustees; Partners; Members; Officers; Board members; Owners; or Beneficiaries.  NC executors and trustees should also be aware of the NC Felony Firearms Act, which prohibits firearms possession by 1) felons or certain other convicted criminals; 2) persons acquitted of certain crimes by reason of insanity; or 3) persons ruled by a court as mentally incapable of proceeding with certain criminal court procedures.

One of the least touted and largest benefits of an NFA Gun Trust has thankfully not been modified. Your trust is an advanced estate planning tool in which you may create multiple trusts, select trust shares, and include much more than NFA items or firearms. You can even submit your existing gun trust to be amended.   If you possess an existing trust and particularly one drafted years ago, now may be the ideal time for a review.

The attorneys at North Carolina Gun Trust will identify and correct any faults and defects, and also, once fixed, expand upon the framework to include multigenerational control.  With the  Platinum Trust, downstream amendments are always included.  Consequently, you will possess the confidence and peace of mind that your trust is always up-to-date.  You will have the absolute best trust available because it is our practice to combine a thorough knowledge of current laws and personal commitment to serve the specialized needs of our clients.  The North Carolina Gun Trust attorney network covers the entire state!

A Trust Agreement is an operations platform that provides guidance for the you, your loved ones and trusted associates.  It lays out specific guidelines as to how the items will be transferred, stored, sold, leveraged and or bequeathed.  The Trust is a better ownership vehicle than any other form because of the power and flexibility it brings to the Grantor.

Permanency:
As your NFA Trust is multi-generational if drafted properly, it allows for permanent registration of the items and foregoes any future requirements and new rules.  Individual ownership requires going through the process all over again if the item is ever transferred.  A properly drafted NFA Trust ends all of that.

Flexibility:
You can add co-trustees to a trust.  Obviously, you cannot add co-trustees to an individual owning NFA items.

Privacy:
Any property placed into the NFA Trust will avoid probate,  This is important because, property passing through probate will be recorded at the courthouse. Depending on the county and clerk involved, there may be a complete list of all of the items in your collection.  Even a general list, such as “gun collection”, would place any one attempting to displace your family of your property notice as to where it might be and might be headed.

You may own and store your gun collection and other valuables in a fireproof safe costing hundreds or thousands of dollars.  It would be smart to add legal protection to those items as well.  A NFA Trust from North Carolina Gun Trust will help protect your gun collection for generations. Contact us now if you have any questions or if you would like to get started.