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Can an NFA Trust Acquire Additional NFA Weapons?

Once established and recognized by the AFTE, an NFA trust can acquire additional NFA items. With machine guns in particular, the rarer variants have continued to climb in value since the 1986 ban, and may be constituted a good investment tool in uncertain market times. Thus, it is foreseeable that an NFA trust may be a good estate planning tool to pass on NFA firearms and value to beneficiaries under the trust.

This noted, an NFA trust may continue to sell and acquire NFA firearms during the times of its existence. Where settlor’s and trustees of the NFA trust often make technical mistakes that are potentially criminal is with mis-delivery of NFA items so that there is a gap in the chain of ownership. An example would be if an NFA trust applies to make a short-barrel rifle and makes it before the making form is approved by the NFA. This item is contraband.

In addition, the funding for these firearms should be tracked and solely made through the use of a trust banking account at a financial institution. The Settlor’s social security number may be used for the tracking and identification of this account. Unlike a business entity who may purchase firearms, be subject to public filings, such as incorporation documents, and be required to have a tax identification number, there is no such requirement with a trust.

Once recognized by ATFE, which will require a copy of the trust being sent at the first transfer request and perhaps all thereafter, the trust may acquire Title II weapons without the formalities of an individual, such as a photograph or approval by the chief law enforcement officer. Nevertheless, the NFA weapon sought to be made or transferred into the NFA trust property must be legal under state and local law (if there is not state-based pre-emption).

For all intents and purposes, and NFA trust is a legal person when set up and can buy, make and sell NFA firearms in accordance with the trust terms.

This blog post is written by Bryan L. Ciyou, an attorney at Ciyou & Dixon, P.C. Ciyou & Dixon, P.C. attorneys practice throughout Indiana.

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Ciyou & Dixon, P.C., is a law firm located in Indianapolis, Indiana. We serve clients in six core practice areas: family lawappellate practicefirearms lawgeneral practicepersonal injury and criminal law.

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Based in Indianapolis and founded in 1995, Ciyou & Dixon, P.C. is a niche law firm focused on successfully dealing with the complexities of divorce, high-conflict child custody and family law. Known for their ability to solve extremely complex situations with high quality work and responsiveness, Ciyou & Dixon will guide you every step of the way. The family law attorneys at Ciyou & Dixon, P.C. will help you precisely identify your objectives and the means to reach your desired result. In addition, this practice focus is augmented by the firm's other three core areas, namely appellate advocacy, civil practice, and firearms law. Life is uncertain. Be certain of your counselSM.

Indianapolis Divorce Attorneys, Ciyou & Dixon, P.C. of Indianapolis, Indiana, offers legal services for Indianapolis, Zionsville, Noblesville, Carmel, Avon, Anderson, Danville, Greenwood, Brownsburg, Geist, Fortville, McCordsville, Muncie, Greenfield, Westfield, Fort Wayne, Fishers, Bloomington, Lafayette, Marion County, Hamilton County, Hendricks County, Allen County, Delaware County, Morgan County, Hendricks County, Boone County, Vigo County, Johnson County, Hancock County, and Tippecanoe County, Indiana.