The Basics of Gun Trusts and NFA Firearm Ownership
Suppressors (also known as “silencers”), Short Barreled Rifles (SBRs), Machine Guns, and Short Barreled Shotguns (SBSs) are legal to own and possess in many states, including Louisiana. That said, these items are highly regulated by the National Firearms Act (NFA), and thus, are often referred to as “NFA items.” The Bureau of Alcohol, Tobacco, Firearms and Explosives (BATFE or ATF) is the primary agency tasked with enforcing the National Firearms Act and serves as a regulatory body in that regard.
In order to purchase or manufacture an NFA item such as a suppressor or an SBR, you will need to apply to do so through the ATF. This may seem intimidating from the outset, but with the growth in popularity of NFA items, we have witnessed a number of developments that have simplified the process. This is a guide to navigating the ins-and-outs of purchasing an NFA item.
In my experience, it usually starts with a client saying, “I want to buy a suppressor.”
Okay, great! If you are purchasing a suppressor (or any other NFA item) from a dealer or from another individual, you will need to submit an application called a “Form 4” and $200 to the ATF for each item. Generally, your dealer will assist you in completing the Form 4 and will submit it for you. During the period that the application is in process, your dealer will maintain possession of the NFA item. Upon approval of the Form 4, you will receive a copy of the form with a NFA stamp on it, and the NFA item from your dealer.
When purchasing an NFA item there are a few different paths you can take: Purchasing as an individual; purchasing through a trust or “gun trust”; and purchasing through an L.L.C. Each method has its advantages and disadvantages:
*** PLEASE BE AWARE THAT NEW REGULATIONS HAVE TAKEN EFFECT WHICH AFFECT SOME OF THE INFORMATION BELOW. WE ARE CURRENTLY WORKING TO UPDATE THE INFORMATION ON THIS WEBSITE. IN THE MEANTIME, YOU CAN READ MORE HERE: http://www.laguntrusts.com/blog/41p-final-proposal-synopsis
Purchasing as an "Individual"
When purchasing a suppressor as an individual, you will be required to provide a passport photo, fingerprints, and a declaration of citizenship to the ATF with each application that you submit. You will not be able to use the ATF’s e-filing system, which significantly speeds up the process, but will instead be required to submit using the ATF’s slower paper filing system. You also will have to obtain a signature of approval from your local chief law enforcement officer and you will be the only person that is allowed to be in possession of the item at any time. Upon your death, your heirs will be required to repeat the ATF’s application process and pay another $200 in order to receive the item.
Purchasing through a Gun Trust
You may also purchase NFA items through a trust or “Gun Trust.” A gun trust is a legal entity which is established to facilitate the application and ownership process of NFA items. The benefits of applying for an NFA item through a gun trust are as follows:
In order to purchase or manufacture an NFA item such as a suppressor or an SBR, you will need to apply to do so through the ATF. This may seem intimidating from the outset, but with the growth in popularity of NFA items, we have witnessed a number of developments that have simplified the process. This is a guide to navigating the ins-and-outs of purchasing an NFA item.
In my experience, it usually starts with a client saying, “I want to buy a suppressor.”
Okay, great! If you are purchasing a suppressor (or any other NFA item) from a dealer or from another individual, you will need to submit an application called a “Form 4” and $200 to the ATF for each item. Generally, your dealer will assist you in completing the Form 4 and will submit it for you. During the period that the application is in process, your dealer will maintain possession of the NFA item. Upon approval of the Form 4, you will receive a copy of the form with a NFA stamp on it, and the NFA item from your dealer.
When purchasing an NFA item there are a few different paths you can take: Purchasing as an individual; purchasing through a trust or “gun trust”; and purchasing through an L.L.C. Each method has its advantages and disadvantages:
*** PLEASE BE AWARE THAT NEW REGULATIONS HAVE TAKEN EFFECT WHICH AFFECT SOME OF THE INFORMATION BELOW. WE ARE CURRENTLY WORKING TO UPDATE THE INFORMATION ON THIS WEBSITE. IN THE MEANTIME, YOU CAN READ MORE HERE: http://www.laguntrusts.com/blog/41p-final-proposal-synopsis
Purchasing as an "Individual"
When purchasing a suppressor as an individual, you will be required to provide a passport photo, fingerprints, and a declaration of citizenship to the ATF with each application that you submit. You will not be able to use the ATF’s e-filing system, which significantly speeds up the process, but will instead be required to submit using the ATF’s slower paper filing system. You also will have to obtain a signature of approval from your local chief law enforcement officer and you will be the only person that is allowed to be in possession of the item at any time. Upon your death, your heirs will be required to repeat the ATF’s application process and pay another $200 in order to receive the item.
Purchasing through a Gun Trust
You may also purchase NFA items through a trust or “Gun Trust.” A gun trust is a legal entity which is established to facilitate the application and ownership process of NFA items. The benefits of applying for an NFA item through a gun trust are as follows:
- Ability to name a pool of possessors (trustees) who may have access to the items;
- Ability to name those whom you wish to receive the items upon your death, without burdening them with the necessity and expense of reapplying for the item through the ATF;
- No necessity of obtaining a signature of approval from your local chief law enforcement officer;
- Confidentiality: No necessity of filing or recording the trust with the state or clerk or court;
- No ongoing maintenance fees.
FORM 4
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If you are purchasing a suppressor, SBR, pre-1986 machine gun, SBS or other NFA item from a dealer or an individual, then you will use a Form 4 for the ATF. The good news is that often, this situation will consist of you purchasing the item from a gun store or dealer, and that dealer will handle all the paperwork for you. All you need to do is show up with a copy of your attorney-prepared trust, $200 for the ATF and money to pay for the item. Once the Form 4 is approved by the ATF, you will submit to an NICS background check (Form 4473) and be on your way. It’s that simple.
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Form 1
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The use of a Form 1 arises when a user wishes to manufacture an NFA item. Most commonly, a gun owner wishes to convert a conventional firearm, such as a rifle or pistol that they already own, into a Short Barreled Rifle. An SBR is a rifle with a barrel less than 16 inches in length. For instance, someone owns an AR-15 with a 16” barrel and wishes to replace the barrel (or complete upper receiver) with something shorter, he/she will need to file a Form 1 with the ATF and apply for the right to do so. This process costs $200, and the owner will generally have to complete the Form 1 on their own. If purchasing the item through an NFA Gun Trust, this process may be completed through the ATF’s online eForm system, which can drastically reduce the approval wait time. If you have questions about this process feel free to contact your gun trust attorney.
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Flat Fee: $300 to establish your NFA Gun Trust.
Entire drafting process may be completed by telephone and e-mail. Office visits are available by appointment.
If you are available in the Baton Rouge area, we can also provide notarization of your trust documents at no charge.
Entire drafting process may be completed by telephone and e-mail. Office visits are available by appointment.
If you are available in the Baton Rouge area, we can also provide notarization of your trust documents at no charge.