Texas NFA Gun Trust
The Benefits of a Texas NFA Gun Trust
Have you ever wanted to legally possess a National Firearms Act (“NFA”) item or have multiple qualified individuals possess the same NFA item? Then you may want to invest in a Texas NFA Gun Trust.
A Texas NFA Gun Trust is a legal way for individuals or groups of qualified individuals (often family members or friends) to possess an NFA item or multiple NFA items.
Instead of an NFA tax stamp being issued to a single person (who would be the only person who could legally possess the NFA Item), the tax stamp is instead issued to a legal entity (in this case, an NFA Gun Trust) with multiple trustees who then could legally possess the NFA item(s).
Because an NFA Gun Trust is a separate legal entity, the property in the NFA Gun Trust passes outside of probate or estate administration. This greatly simplifies transfers between designated persons and minimizes potential tax liability.
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What Items are Typically Held in a Texas NFA Gun Trust?
While there are many types of trusts, an NFA Gun Trust is designed specifically for National Firearms Act Items. We have simplified the definitions to highlight key features.
Muffler or Silencer, Suppressor
A device for silencing, muffling, or diminishing the report of a portable firearm.
Short-Barreled Rifle
A rifle that has an overall length of less than 26 inches or a barrel of less than 16 inches in length.
Machinegun (Machine Gun)
A firearm that can shoot, automatically, more than one shot, without manual reloading, by a single function of the trigger.
Short-Barreled Shotgun
A shotgun that has an overall length of less than 26 inches or a barrel of less than 18 inches in length.
Any Other Weapon (“AOW”)
A concealable firearm or weapon that does not fit the traditional definition of other firearms based on how the item is manufactured or modified. The full definition can be found in 26 U.S.C. § 584(e).
Destructive Device
Bombs, grenades, rockets, missiles, mines, or similar devices; and a firearm (other than a shotgun) that has any barrel with a bore of more than one-half inch in diameter (.50 caliber).
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We have helped thousands of individuals establish their NFA Trusts.
Why are Texas NFA Gun Trusts So Popular?
The popularity of NFA Gun Trusts comes down to four key benefits (1) paperwork, (2) ease of ownership, (3) control, and (4) cost savings.
Paperwork
unlike other legal entities (corporations, LLCs, etc.), creating an NFA Gun Trust requires no filings with the government or IRS. Additionally, there are no continuing government fees or compliance requirements.
Ease of Ownership
NFA item(s) are easier to manage if more than one person can legally possess and use them. For example, if an individual owns the NFA item, then only that individual can legally possess it. On the other hand, if the NFA item is owned by an NFA Gun Trust, all trustees, including co-trustees, can legally possess and use all of the the NFA items in the trust.
Control
Simply put, a Texas NFA Gun Trust is a legal entity that can hold property. Additionally, you may easily add or remove co-trustees without having to pay an additional $200 tax stamp.
Cost Savings
There is only a one-time fee for each NFA item when the item is added to the NFA Gun Trust. That means avoiding the $200 tax stamp for each transfer among co-trustees.
Additional Benefits of a Texas NFA Gun Trust
- Not A Boiler-Plate Form – Our Texas NFA Gun Trusts are personalized for each client.
- Attorney-Backed – Our Texas NFA Gun Trusts documents are created by lawyers and backed by a law firm with over 100 years of experience.
- Unlimited Trustees – Trustees are the person(s) whom you want to be able to possess the items in your trust legally. They must be at least 18 years of age and legally able to purchase, possess, and transfer firearms under state and federal law.
- Unlimited NFA Items -An NFA Gun Trust can have as many NFA items as are legally acquired.
- Choose Beneficiaries – this is the person(s) whom you want to receive the funds for the sale of the NFA item(s) after you pass and may be under the age of 18.
- Easily Amend – Want to add or remove an item, trustee, or beneficiary? We can help!
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Get Started With Your Texas NFA Gun Trust
We have helped thousands of individuals establish their NFA Trusts.
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!
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Get Started With Your Texas NFA Gun Trust
We have helped thousands of individuals establish their NFA Trusts.