A gun trust—also known an NFA (National Firearms Act) trust—is a revocable trust created to hold title to or ownership of firearms. A gun trust is organized under the laws of the state indicated in the trust agreement—which is usually the residence of the person creating the trust—also known as the grantor or settlor.
A gun trust is an independent legal entity and is the legal owner of the guns transferred to the trust or purchased by the trust. The trust agreement should name a trustee (person or entity) to manage the trust for the beneficiaries of the trust (often the grantor’s heirs). The trustee is often the grantor during the grantor’s lifetime.
A gun trust is revocable, and the grantor can revoke it or make changes to the trust agreement at any time before the grantor’s death. But at the grantor’s death the trust becomes irrevocable and a successor trustee (named in the trust) manages the trust for the individuals or entities named as beneficiaries.
Gun trusts are also referred to as NFA trusts because they are often created to own firearms subject to Title II of the federal National Firearms Act—including short-barreled rifles, short-barreled shotguns, machine guns, and suppressors. The definition of firearms subject to the NFA is in the United States Code (federal statutes) at 26 U.S.C. §5845.
A well-written gun trust has special rules and provisions to ensure the trustee and the beneficiaries do not violate the NFA, as there are serious potential consequences to violating federal gun laws—whether intentionally or accidentally. Violations may result in loss of the firearms, a prison term of up to 10 years, and fines up to $10,000.
In California, a gun trust is a legal instrument that allows individuals to hold title to firearms within a trust. This type of trust is typically used for firearms that are regulated under the National Firearms Act (NFA), such as short-barreled rifles, short-barreled shotguns, machine guns, and suppressors. The trust is managed by a trustee for the benefit of the beneficiaries, which often include the grantor's heirs. The grantor, who creates the trust, can revoke or amend the trust at any time during their lifetime. Upon the grantor's death, the trust becomes irrevocable, and a successor trustee takes over management. California state laws and federal laws, including the NFA, govern the creation and operation of gun trusts. It is crucial that a gun trust is carefully drafted to ensure compliance with all applicable laws to avoid severe penalties, including imprisonment and fines. Given the strict gun control laws in California, individuals interested in creating a gun trust should consult with an attorney to navigate the complex legal requirements and ensure the trust's provisions do not lead to inadvertent violations of state or federal firearm regulations.