Even with the new requirements of ATF Rule 41F, there are still significant benefits to purchasing an NFA Trust. (1) You may name other individuals as Co-Trustees so that they are permitted to use the Class 3/Title II weapons. Note that if you purchase the weapon individually, no one else is permitted to use item. (2) You will name at least one beneficiary to receive the items upon your death or incapacity, thereby passing the items to the person YOU designate. (3) The named beneficiary will complete ATF Form 5 and will not have to pay the tax stamp to transfer the items into their name.
As of July 13, 2016, the new ATF Rule 41F went into effect. This new rule applies to all “responsible persons” who are completing a new Application for the purchase or manufacture of a Class 3/Title II weapon. At this point, there has been no clarification as to the term “responsible person.” However, under “Definitions,” on Form 5320.23, it states: “Examples of who may be considered a responsible person include settlors/grantors, trustees…”
You will need to submit the following to the ATF with your Application (Form 1, 4 or 5): (a) two fingerprint cards; (b) two 2” x 2” photographs, and (c) two Responsible Person Questionnaires (Form 5320.23). In addition, the completed Application and Form 5320.23 must be sent to your Chief Law Enforcement Officer (“CLEO”) advising them that you are in the process of purchasing the Class 3/Title II weapon. The CLEO does not need to sign this form.
Rule 41F even applies to anyone who has previously created a gun trust and has purchased Class 3/Title II weapons under the trust. Once you purchase a Class 3/Title II weapon under Rule 41F and submit fingerprints and photograph, and if you purchase another weapon within 24 months, you do not need to resubmit fingerprints and photo. You will, however, need to complete ATF Form 5320.23 and provide it along with the new Application to your CLEO. In addition, if a Co Grantor, Co-Trustee or a beneficiary who is 21 years of age or older lives outside of the jurisdiction where the trust items are held, that person will also need to send a copy of the Application and ATF Form 5320.23 to their CLEO. Feel free to call our office should you have any questions regarding the new Rule.