Texas NFA Gun Trust
TEXAS NFA GUN TRUST FREQUENTLY ASKED QUESTIONS
Who are the parties to an NFA trust?
Settlor – The settlor is the person creating the NFA trust; they provide the funds for the trust, and they are a responsible person in the trust.
Trustee – All co-trustees are also considered responsible persons in the trust. This means that for any NFA items added to the trust while they are trustees, they will need to submit fingerprints, photos, and Form 5320.23. Co-trustees have the ability to possess, store, transport, and use the NFA items. They must be at least 18 years of age.
Beneficiary – The beneficiaries are entitled to the distribution of assets from the trust. They do not need to be 18 years of age but must be before they take possession of the NFA items. Additionally, they are not allowed to possess, store, transport, or use the NFA items.
Successor – The successor is the person who takes over the trust once the trustee/settlor has died or becomes incapacitated. Once a successor takes over, they can continue with the trust as is or add or remove co-trustees. But, there are limitations; a successor cannot add or remove beneficiaries or successors.
Important Note – All parties to a trust must be qualified to possess firearms under state, federal, and local laws, including firearms regulated under the National Firearms Act.
What is the procedure for purchasing or building NFA items after I’ve received my NFA trust?
Whether you decide to buy or build an NFA item, the requirements are substantially similar. After you’ve received your NFA trust, you need to submit the required paperwork to the B.A.T.F.E. The paperwork required from you and any co-trustees is a 2×2 photo, fingerprints, Form 5320.23, and $200 as payment for the tax stamp. Additionally, you will need to submit a Form 1 or 4, depending on if you are building an NFA item or buying one. Before mailing out Form 1 or 4 to the B.A.T.F.E., you need to notify your local Chief Law Enforcement Officer by mailing or dropping off a copy of Form 1 or 4 and a copy of Form 5320.23. After you receive your tax stamp in the mail, you can build an NFA item or go and pick yours up from the FFL dealer you purchased from. If you are building an NFA item, it is also important to engrave the item with a serial number, the model, caliber, or gauge, the name of the trust, and the city/state it was made, where applicable. Make sure you always keep a copy of your trust with you.
How many people can be co-trustees on my NFA trust?
As little as one person can be a trustee. However, a trust can have as many co-trustees as you would like. But, the trust must have at least one successor trustee and one beneficiary at a minimum.
How old does an individual need to be to become a trustee/successor/beneficiary?
Co-trustees – must be at least 18 years of age.
Beneficiaries – can be of any age but must be at least 18 years of age before coming into possession of any NFA items.
Successors – must be at least 18 years of age.
How do I amend my NFA trust to add new NFA items or additional parties?
Reach out to Walker & Taylor, PLLC, as we can provide amendments. Amendments can include adding/removing parties or NFA items.
I have another question about Texas NFA gun trusts
We are here to help! Give us a call at (281) 668-9957 and ask to speak to our NFA department, or submit your question here, and our team will be in touch with you shortly!