Benefits of a Firearm Trust
The Trust will streamline acquisition of short barrel rifles, suppressors and other items governed by the National Firearms Act (NFA). Our clients have seen their wait times for NFA transfer tax stamps go from many months to only a few short weeks. Compliance with the NFA requires the submission of the BATFE Form 4, or ATF Form 4, to the BATFE along with $200.00 for the transfer tax. The application requires the submission of a completed fingerprint card, a photo of the applicant, and the signature of the Chief Law Enforcement Officer, hereinafter "CLEO", where the applicant resides. If the CLEO doesn’t sign, you don’t get your suppressor or NFA firearm. A person can dispense with the CLEO signature requirement, fingerprints, and picture by applying and purchasing the firearm as trust. These trusts are commonly referred to as "NFA Gun Trusts" or "NFA Firearm Trusts".
An NFA Firearm or Gun Trust will not only dispense with the prints, photo, and CLEO signature requirements, it will more importantly provide protection for your loved ones against “constructive possession” accusations and potential criminal liability. An NFA Firearm or Gun Trust is set up by a person referred to in the Michigan Trust Code as a "settlor", you, and the trust agreement sets out how the property is to be maintained, who may possess the property with the settlor, and how the property is to be distributed upon the death of the settlor. An NFA Firearm or Gun Trust accomplishes this by designating a trustee and/or co trustees to do as directed in the trust agreement. The co-trustees of the trust are allowed to be in possession of the firearm just as the person establishing the trust. There are restrictions, under the National Firearms Act of 1934, and the “Gun Control Act of 1968” (Title 18, United States Code, Chapter 44 and the implementing regulations found in, but not limited to, Title 27, Code of Federal Regulations, Part 478), as to the individuals who are allowed to possess NFA firearms and are applicable to the co-trustees and beneficiaries designated by the settlor. An unlawful possession, actual or constructive, of a NFA firearm is a 10 year felony and/or a fine of up to $250,000. The application and registration of the NFA firearm by a trust provides you the opportunity to allow your household, and others you may designate, to be in lawful possession of the NFA firearm, even if they don't use it.
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