NFA Trusts

The National Firearms Act of 1934, the Gun Control Act of 1968, and other federal law make multiple classes of firearms, accessories and other weapons subject to heightened regulations.  These items are referred to as “Title II” firearms.  Many current or prospective owners of these items desire to establish Trusts, known as NFA Trusts or Gun Trusts, to own the items.  The main advantages of holding these items in a Trust include for efficiency and simplicity of passing them to beneficiaries upon the death of the owner, for ease of compliance with legal regulations, for privacy considerations, and so that the owner can allow specific third parties to use or possess the items owned by the Trust with no fear that she, the third parties, or all of them, will violate federal or state law.

What is the difference between Title I firearms and Title II firearms?

Title I Firearms are, generally speaking, ordinary firearms, such as common-length, single-action or semi-automatic rifles, pistols, revolvers, and shotguns.  They can be owned by citizens, and can be built by citizens.  Title I Firearms can be owned by anybody who is not considered to be a prohibited person by the Bureau of Alcohol, Tobacco and Firearms (ATF).

Title II Firearms are, generally speaking, less commonly owned firearms and accessories.  The main categories include:

• Fully Automatic Weapons (“Machine guns”)
  1. One depression of the firing mechanism causes multiple rounds of ammunition to be fired.
  2. Firearms within the definition of machinegun include weapons that shoot, are designed to shoot, or can be readily restored to shoot, automatically more than one shot without manual reloading by a single function of the trigger.
  3. The definition of machinegun also includes the frame or receiver of a machinegun.
  4. The “designed to shoot automatically more than one shot without manual reloading by a single function of the trigger” portion of the definition relates to the characteristics of the weapon that permit full automatic fire. ATF has also held that the “designed” definition includes those weapons which have not previously functioned as machineguns but possess design features which facilitate full automatic fire by simple modification or elimination of existing component parts.
• Sound Suppressors (“Silencers/suppressors/mufflers”)
  1. A firearm silencer and a firearm muffler are defined as any device for silencing, muffling, or diminishing the “report” (volume) of a portable firearm.
  2. The definition of a silencer also includes any combination of parts, designed or redesigned, and intended for use in assembling or fabricating a firearm silencer or firearm muffler.
  3. The silencer is treated as a Title II weapon or NFA firearm itself; the firearm to which the silencer is attached maintains its separate legal status as Title I or Title II. If a silencer is integral to a Title II weapon, such as an SBR, the entire weapon only counts as a single Title II item.
• Short barreled-rifles
  1. A short-barreled rifle (SBR) is defined as:
     •  a rifle having a rifled barrel or barrels of less than 16 inches in length;
       (2) a weapon made from a rifle if such weapon as modified has an overall length of less than 26 inches or a barrel or barrels of less than 16 inches in length.
     • A rifle is a firearm designed to be fired from the shoulder and designed to use the energy of an explosive in a fixed cartridge to  fire only a single projectile through a rifled barrel for each single pull of the trigger. The ATF procedure for measuring barrel length is to measure from the closed bolt (or breech-face) to the furthermost end of the barrel or permanently attached muzzle device.

• Weapon made from a rifle
  • A weapon made from a rifle is a rifle type weapon that has an overall length of less than 26 inches or a barrel or barrels of less than 16 inches in length.
  • The overall length of a firearm is the distance between the muzzle of the barrel and the rearmost portion of the weapon measured on a line parallel to the axis of the bore.
• Short-barreled shotguns
  1. A short-barreled shotgun (SBS) is defined as:
     • a shotgun having a smoothbore barrel or barrels of less than 18 inches in length;
     • a weapon made from a shotgun if such weapon as modified has an overall length of less than 26 inches or a barrel or barrels of less than 18 inches in length.

It must be intended to be fired from the shoulder one shell of shot (pellets) or one projectile at a time.

1. A shotgun is a firearm designed to be fired from the shoulder and designed to use the energy of the explosive in a fixed shotgun shell to fire through a smooth bore either a number of projectiles or a single projectile for each pull of the trigger.
2. A shotgun subject to the NFA has a barrel or barrels of less than 18 inches in length.

• Weapon made from a shotgun
  1. A weapon made from a shotgun is a shotgun type weapon that has an overall length of less than 26 inches or a barrel or barrels of less than 18 inches in length.
  2. The overall length of a firearm is the distance between the muzzle of the barrel and the rearmost portion of the weapon measured on a line parallel to the axis of the bore.

Ownership Requirements: These weapons or accessories can be owned by anybody who is not considered to be a prohibited person by the ATF and receives an ATF approved Tax Stamp back from the ATF.

What Federal agency governs these items?

The U.S. Department of Justice, effective January 24, 2003. ATF, the name for which was changed to the Bureau of Alcohol, Tobacco, Firearms and Explosives, continues to have the authority to administer and enforce Federal firearms laws.

What are the main laws that govern Title II, Class 3 weapons?

1. National Firearms Act of 1934
2. Title II of the Gun Control Act (GCA) of 1968
3. Firearm Owners’ Protection Act (1986)

 Who is a Legally Prohibited Person?

Federal Law

The Gun Control Act (GCA), codified at 18 U.S.C. § 922(g), makes it unlawful for certain categories of persons to ship, transport, receive, or possess firearms or ammunition, to include any person:

• convicted in any court of a crime punishable by imprisonment for a term exceeding one year;
• who is a fugitive from justice;
• who is an unlawful user of or addicted to any controlled substance (as defined in section 102 of the Controlled Substances Act, codified at 21 U.S.C. § 802);
• who has been adjudicated as a mental defective or has been committed to any mental institution;
• who is an illegal alien;
• who has been discharged from the Armed Forces under dishonorable conditions;
• who has renounced his or her United States citizenship;
• who is subject to a court order restraining the person from harassing, stalking, or threatening an intimate partner or child of the intimate partner; or
• who has been convicted of a misdemeanor crime of domestic violence.

The GCA at 18 U.S.C. § 922(n) also makes it unlawful for any person under indictment for a crime punishable by imprisonment for a term exceeding one year to ship, transport, or receive firearms or ammunition.

Further, the GCA at 18 U.S.C. § 922(d) makes it unlawful to sell or otherwise dispose of firearms or ammunition to any person who is prohibited from shipping, transporting, receiving, or possessing firearms or ammunition.

The Arms Export Control Act (AECA) prohibits the issuance of licenses to persons who have been convicted of:

• Section 38 of the AECA, 22 USC 2778;
• Section 11 of the Export Administration Act of 1979, 60 USC App. 2410;
• Sections 7903, 794, or 798 of Title 18, USC, relating to espionage involving defense or classified information;
• Section 16 of the Trading with the Enemy Act, 50 USC App. 16;
• Section 30A of the Securities Exchange Act of 1934, 15 USC 78dd-1, or section 104 of the Foreign Corrupt Practices Act, 15 USC 78dd-2;
• Chapter 105 of Title 18, USC, relating to sabotage;
• Section 4(b) of the Internal Security Act of 1950, 50 USC 783(b), relating to communication of classified information;
• Sections 57, 92, 101, 104, 222, 224, 225, or 226 of the Atomic Energy Act of 1954, 42 USC 2077 2122, 2131, 2234, 2272, 2275, and 2276;
• Section 601 of the National Security Act of 1947, 50 USC 421, relating to the protection of the identity of undercover intelligence officers, agents, and other sources;
• Section 371 of Title 17, USC, when it involves conspiracy to violate any of the above statutes; and
• International Emergency Economic Powers Act, 50 USC 1702 and 1705.

For most people who own or wish to own Title II weapons or accessories, it is advantageous for numerous reasons that they establish an NFA Trust to hold the items. If you have questions about setting up a NFA Trust, contact Brad Hull at 216-621-7860.