Responsible gun owners incorporate appropriate tools for addressing firearms in estate plans. Gun trusts are powerful tools--when structured properly--that offer a safe way of managing both NFA and non-NFA items. ATF41F is a new rule that goes into effect on July 13, 2016 which will change gun trust administration.
2. Firearms are Important Tools of Freedom
Gun ownership speaks to basic concepts of freedom, individual liberty, and other basic
rights.
You may own just one gun or many.
You may use them for sport or self-defense.
You may collect them or buy and sell them in business.
You may own firearms that are family heirlooms.
Mere possession of a firearm by you or transfer of a firearm to another creates legal
risk. Confusing and inconsistent gun laws expose you to the “accidental felony” – an
oversight with criminal consequences.
Why not use the law rather than fear it? We are here to help every gun owner stay safe
and secure.
Together, we will protect, preserve, and enjoy our 2nd Amendment rights.
3. You Use and Share Firearms…
Family Members
Friends, Roommates… or others with access
Visitors & Guests
Acquaintances at a range
Even “innocent” possession and transfer of a firearm between
persons… can be CRIMINAL.
Do you know how these words are defined? Are they the same
under Federal and State law?
6. Timeline of Federal Firearms Law
1791 Second Amendment Ratified It states, "A well regulated Militia,
being necessary to the security of a free State, the right of the people
to keep and bear Arms, shall not be infringed."
1871 National Rifle Association Founded Union soldiers Col. William C.
Church and Gen. George Wingate found the NRA to "promote and
encourage rifle shooting on a scientific basis."
1934 National Firearms Act Regulates six categories of dangerous
weapons. Currently is Title II of the Gun Control Act of 1968.
1938 Federal Firearms Act Congress aimed this law at those involved in
selling and shipping firearms through interstate or foreign commerce
channels. Established Federal Firearms License (FFL) system.
7. Timeline of Federal Firearms Law
1968 Gun Control Act It expanded recordkeeping and licensing
requirements, restricted certain sales and further defined persons who
were banned from possessing firearms. The key element of this bill
outlawed mail order sales of rifles and shotguns.
1972 Bureau of Alcohol Tobacco and Firearms Enforcement of the Gun
Control Act was given to the Dept. of the Treasury's Alcohol and Tobacco
Tax Division of the Internal Revenue Service, which was renamed.
1986 Law Enforcement Officers Protection Act Made it illegal for anyone to
manufacture or import armor piercing ammunition, or "cop-killer bullets,"
which are capable of penetrating bulletproof clothing.
1986 Firearms Owners' Protection Act Eased restrictions on gun sellers and
the sale of some guns. Imposed additional penalties for persons using a
firearm during certain crimes and persons with robbery or burglary
convictions who are illegally shipping guns.
8. Timeline of Federal Firearms Law
1990 Crime Control Act AG ordered to establish "drug-free school
zones," including criminal penalties for possessing or discharging a
firearm in a school zone. Outlawed the assembly of illegal
semiautomatic rifles or shotguns from legally imported parts.
1994 Brady Handgun Violence Prevention Act Five-day waiting
period and background check before a licensed gun importer,
manufacturer or dealer can sell or deliver a handgun to an
unlicensed individual. Required a new National Instant Criminal
Background Check System.
1994 Violent Crime Control and Law Enforcement Act "Assault
Weapons Ban," this bill banned the manufacture, possession, and
importation of new semiautomatic assault weapons and large-
capacity ammunition feeding devices (or magazines) for civilian use.
9. Then, Two Key Cases
2008 District of Columbia v. Heller… Washington D.C.
Handgun Ban Dismissed... 2nd Amendment protects
individual right to possess a firearm and to use it for
traditionally lawful purposes…
2010 McDonald v. Chicago… 2nd Amendment applies
to States and Local Government… provides Americans
a fundamental right to bear arms that cannot be
violated by state and local governments
11. Titles I and II of the Gun Control Act
Federal Law
Title I (1968) State Firearms Control
Assistance, regulates interstate sales in
firearms.
Title II National Firearms Act (NFA) is a
regulates and imposes taxes on transfer of:
• Machine guns
• Short-barreled rifles
• Short-barreled shotguns
• Silencers
• Any Other Weapons (AOWs)
• Destructive Devices
12. History of the GCA
During its first 150 years as a Federal union, the U.S.
had no national firearms legislation.
A NRA supported bill was enacted as the Federal
Firearms Act of 1938. 52 Stat. 1250 (1938), codified
at 15 U.S.C. Chapter 18.
But even with state laws requiring licensing, it proved
to be difficult or impossible for States to prevent or
punish violations of law.
13. History of the GCA
GCA made it a crime for any FFL to transfer a firearm in violation
of State law.
GCA channeled interstate/foreign commerce through FFLs.
GCA extended age restrictions to long guns as well as handguns.
GCA prohibited importation of all surplus military firearms.
GCA made it unlawful to transfer or possess a machine gun,
except for those made prior to 1986. 18 U.S.C. 922(o)
14. Key Concepts Under the GCA
INTERSTATE COMMERCE
Defined as commerce between ay place in a State
and any place outside of that State, or within any
possession of the United States. 18 USC 921(a)(2).
STATE OF RESIDENCY
Must be licensed to transfer/receive interstate
15. Brady Law 1993
In November 1993 Congress amended the Gun
Control Act of 1968 (GCA) by passage of the
“Brady Law.”
Established the National Instant Criminal
Background Check System (NICS), run by the
FBI.
Background checks began November 1998.
Required for all firearms sales by FFLs to non-
licensed purchasers.
16. “FIREARM”
GCA
A. Any weapon (including a starter gun)
which will or is designed to or may
readily be converted to expel a
projectile by the action of an explosive;
B. The frame or receiver of any such
weapon;
C. Any firearm muffler or firearm silencer,
or;
D. Any destructive device.
NFA
A. A shotgun having a barrel or barrels of less
than 18 inches in length;
B. A weapon made from a shotgun if such
weapon as modified has an overall length
of less than 18 inches in length;
C. A rifle having a barrel or barrels in less than
16 inches in length;
D. 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;
E. Any other weapon, as defined in subsection
(e);
F. A machine gun;
G. Any silencer (as defined in section 921 of
title 18, United States Code); and
H. Any destructive device.
17. GCA Firearms
Pistols, Revolvers
Rifles, Shotguns
Frames or Receivers
* Machineguns (except conversion
kits)
Silencers, including parts
Destructive devices
All other weapons that expel a
projectile by the action of an
explosive
NFA Firearms
Short-barrel Rifles
Short-barrel Shotguns
*Machineguns
Silencers, including parts
Destructive devices
Any other weapon
Machinegun
Conversion Kits and
Machineguns that
expel a projectile by
the action of a
propellant other
than an explosive
18. PROHIBITED PERSONS
Federal law states that a “prohibited
person” cannot possess a firearm.
There is a federal process for
restoration of gun rights that may not
precisely match state law.
State law also defines prohibited
persons as well as stating conditions
for restoration of rights.
Persons Such as…
─ Felons and certain convicts (check the
definitions!)
─ Fugitives
─ Drug addicts
─ Mental defectives
─ Many aliens
Person Who
─ Was dishonorably discharged
─ Renounced citizenship
─ Is subject to restraining order
─ Was convicted of domestic violence
APPLIES TO ALL FIDUCIARIES AND BENEFICIARIES!
20. North Carolina Gun Laws – Part 1
North Carolina gun trusts may include both NFA weapons and non-NFA
weapons.
Gun storage laws – Firearms must be locked and out of the reach of children.
As of 2013, possession of firearms in establishments where alcohol is served is
now permitted. Firearms may also be locked in a vehicle on state and
university properties.
Handgun transfers (gifts) require a permit. (Unless recipient has a concealed
carry license)
Since July 1, 2014, court clerks are required to report to the federal
government all individuals who are disqualified from owning a gun after a
background check.
21. North Carolina Gun Laws – Part 2
Self Defense Laws: North Carolina Castle Doctrine. Only legal if the victim is
inside their own home, automobile and workplace, and the intruder enters.
As of October 1, 2013, legislation makes it legal for hunters to use suppressors.
As of October 1, 2013, Senate Bill 549 Gun Privacy added language to preserve
privacy of gun permit requests and firearms sales
Offers records to law enforcement agencies upon request
Information is not public record
Firearms may be part of a probate estate, even with a Will, if they were not
included in a gun trust; and any transfers must be documented as part of the
probate file. With a North Carolina gun trust, there are no probate
proceedings and no public records are made.
22. North Carolina Gun Permits
Handgun purchase permit
21 or older
Pass criminal background check
Apply in the county of residence
Concealed handgun permit (reciprocity laws recognize permits issued in other
states)
All purchase permit requirements above apply
Firearms training and safety class requirement
Mental and physical health check requirement
23. What about state law?
NFA items you can own in NC (ATF approval required):
Silencers
Short-barreled rifles
Short barreled shotguns
Machine guns*
AOWs
Destructive devices
NOTE: Keep a copy of your tax stamp with NFA items!
*Sheriff’s permit required in some cases.
24. Every time a transfer of a handgun takes place, the buyer
(recipient) must hold a valid permit and the seller (giver)
is required to hold a copy of the permit indefinitely.
Under North Carolina gun laws, this applies to every
transfer of pistols, whether or not the weapon was
transferred from a private party or between relatives.
North Carolina Gun Law Requirement
25. Why Every Gun Owner Needs a Trust
To provide written instructions specifically telling others how to
lawfully distribute
To avoid an “accidental felony” under Federal and State firearms
laws
You retain control
To avoid probate and maintain privacy
To have the right person manage your firearms if you become
incapacitated or die
To protect your firearms legacy now and into the future
27. Individual Ownership
PRO
• No need to register or file
• No rules or guidelines
• Probate
• Accidental Felony
CON
• No clear gun instructions
• Can you lawfully “share” or
loan firearms?
• Risk of accidental felony?
• Risk of CLEO turn- down
for NFA firearms
28. Entity Ownership
PRO
• Provides rules or guidelines
• Avoids CLEO signoff for
NFA firearms
• May provide asset
protection
• May avoid probate
CON
• Adds expense and
complexity
• Adds documentation
29. Entity Ownership
Corporations, LLCs, and some partnerships must file annual reports and
pay an annual license fee.
Gun-specific versions are used for ownership with friends & business.
Require formalities to work as intended.
Trusts are private, informal, and flexible, with no annual reports or filing
requirements. They are easy to amend. They avoid probate and allow
many options in how firearms may be passed on.
A trust is the preferred solution for private firearms ownership.
Can be revocable or irrevocable to address different goals.
It should be built for the purpose!
30. Free gun shop trusts, Internet trusts, etc.
ANY CONVENTIONAL LIVING TRUST IS DANGEROUS!
- They are generic and without firearms-specific guidance
- They permit or direct illegal transfers
- They permit prohibited persons to possess firearms
- They are often invalid, incomplete, or defective.
- Free ones lack a knowledgeable gun trust lawyer behind it when
trouble comes your way.
IS IT WORTH IT TO TAKE THESE RISKS?
Your choice – it’s America!
WARNING, WARNING
DANGER, WILL ROBINSON…
31. What is a “real” Gun Trust?
It’s more than just a revocable living trust, that you establish, you run, for
your benefit and that of selected others.
A “real” Gun Trust is a special revocable living trust expressly designed to
own firearms and accessories.
It should help YOU, and your loved ones and friends, to enjoy your
firearms without accidentally committing possession or transfer
penalties.
A trust is like a legal box that stores your
gun stuff for you…with detailed guidance
and instructions to avoid accidental
felonies and protect your guns and gun
rights!
32. A Gun Docx® Trust Avoids Accidental Felonies By:
1. Holding LEGAL TITLE to regulated and non-regulated
firearms
2. Allowing only LEGAL BENEFITS for those you select
3. Allowing only LEGAL TRANSFERS of firearms by gift,
sale, or sharing
4. Shifting responsibility/personal liability to a Trustee in
possession (so long as YOU are not also negligent.)
A trust must obey both Federal & State law!
33. Why You Need a Gun Trust
WHAT WE NEED TO THINK ABOUT…and PLAN FOR!
Possession and Transfer Issues
Competency with Firearms Law…and what you can
and cannot do…and what if someone else is acting
for you?
Failure to understand these concepts can expose you
or others to criminal AND/OR civil liability
34. Why You Need a Gun Trust
The Planning Issue is to keep you and others SAFE in
possessing and transferring firearms.
CONSIDER
The Firearm
Handguns, rifles, shotguns, or NFA under Federal & State
law
The Person(s) Involved
Experience and Knowledge
Prohibited or Not under Federal & State Law
35. Possession, Transfer & Prohibited Persons
What is Actual vs. Constructive Possession?
Transfers
Review “transfer” under both State and Federal Law
Remember, the term “transfer” is broadly defined and may
include “selling, assigning, pledging, leasing, loaning, giving
away, or otherwise disposing of” a firearm.
Review Prohibited Persons
What guidance and control systems are in place to protect
you and others who will interact with your firearms?
36. Liability Issues
What liability can a Trustee of a gun trust have?
Negligent Entrustment
Negligent Maintenance
Transfer to a Prohibited Person
Criminal Possession
Transfer to a State where firearm is illegal
HELP FAMILY & FRIENDS BE SAFE
Provide Written Guidelines
37. Use a Trust & Minimize Liability Issues
Provide & Maintain Written Trust System
Educate Trustees
Legal requirements in your state
Trust requirements
Administration process and procedure
Forms
Educate and Document Beneficiary Use
Legal requirements
Trust requirements
Legal capacity
Conditions of use
Maintain Firearms!
38.
39. Why is a Gun Docx® Trust the Best Choice?
It was created by a nationally recognized gun law attorney
with the help of other attorneys.
It is specifically written to lawfully possess and enjoy firearms.
There is a trust version to fit every goal and budget.
It is customizable and easy to amend or update.
A local attorney helps you create it and then supports it.
It is a national system, and your attorney has a network of
attorneys to help if you move or have multistate issues.
Gun Docx® is constantly improved by attorney and client
input so it can stay current as gun laws evolve.
40. GunDocx®Trusts •Designed to help simplify acquisition of NFA-regulated firearms permitted in a given
state.
•Relies in simple beneficiary language, laws of guardianship, or intestacy.
•Designed to be relatively simple, but far superior to “free” or cheap gun shop or certain
online trusts.
Bronze+
(NFA-only)
•Offers the best combination of benefits and planning options for most gun owners.
•Names contingent beneficiaries, contains detailed guidance, reference materials, trust
decanting provisions.
•Uses tangible personal property memorandum, outright disposition.
•Includes attorney consult
Silver (Mainstream,
Complete Plan)
•Designed for those with larger collections and complex goals, such as multi-state
firearms ownership, separate planning for individual beneficiaries, and dynasty
collecting and usage by families.
•More extensive attorney consultation and customization.
Gold (Collectors,
Multi-state,
Dynasty Plan)
41. Editions of the Gun Docx® Trust
Important Provisions BRONZE+ SILVER GOLD
1. You are Maker of Trust Yes Yes Yes
2. You are Trustee of Trust Yes Yes Yes
3. You are Beneficiary of Trust Yes Yes Yes
4. Trust can be amended/restated Yes Yes Yes
5. People you shoot with are
considered beneficiaries of your Gun
Docx® Trust
Yes Yes Yes
6. Contains detailed definitions and
guidance
NFA-only Yes Yes
7. You can easily add or delete
additional Beneficiaries including
charities
Death beneficiaries only Yes Yes
8. Allows gifts of specific firearms to
specific people at death by memo
No Yes Yes
9. Standalone firearms estate plan (i.e.
can distribute at death without relying
on your formal estate plan)
Yes Yes Yes
10. Avoids probate Yes, NFA-only Yes, if properly funded Yes, if properly funded
42. Editions of the Gun Docx® Trust
Important Provisions BRONZE+ SILVER GOLD
11. Plans for ALL Firearms NFA Only Yes Yes
12. Trustee succession fully stated in
Gun Docx® Trust
Limited Customization Some Customization Yes
13. Permits Common Trust for Multi-
generational Collections
No No Yes
14. Permits Individual Trust Shares No No Yes
15. Contains Investment Powers No No Yes
16. Contains disclaimer and power to
appoint property options
No No Yes
17. Provides for a continuing trust to
serve as “Dynastic Family Armory”
No No Yes
18. Provides for multi-state Firearms
Ownership of specific NFA Items
No No Yes
19. Trust Protector Provisions to allow
non-judicial revisions
No No Yes
43. Anatomy of a Gun Docx® Trust Binder
Introduction
Overview
Reference Materials
Gun Docx® Trust Agreement
Instructions to Trustee
Trust Assets
Schedule A (NFA-regulated items)
Schedule B (Non-NFA items)
Funding Documents
Assignment (Generic)
Bill of Sale (Specific Items)
Tax Filings
BATFE FORM 4
Transfers of Interests
Forms to Add & Remove Beneficiaries
Tangible Personal Property Memorandum
Other Documents
A PURPOSE-BUILT TRUST FOR
YOUR FIREARMS COLLECTION
PROTECT YOUR FAMILY AND
YOUR GUN RIGHTS
44. SOUTHERN GUN LAW GROUP
SERVING NORTH CAROLINA, FLORIDA & TENNESSEE
Twitter: @SouthernGunLaw
#guntrustday
www.southerngunlawgroup.com
• Gun Docx® Trusts
• Will and trust planning
• Asset protection planning
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