I've only got one NFA item, a suppressor, and I'd always heard that having a trust was the easiest way to pass NFA items to someone at your death. I purchased it as an individual.
We're working with a lawyer to make up our will and at first she recommended I get a gun lawyer to make a trust.
But I did some research.
It seems to be easier and cheaper to just specify who will get the item in the will. Then the executor holds onto the item until the named recipient fills out forms and passes background checks, then the executor passes the item to the beneficiary. No transfer fees or tax stamps need to be purchased.
This will save me the trouble and money of getting a gun lawyer to draw up a trust, and I'd have to pay the $200 tax to get it put into the trust.
Here are links with info from the ATF site and others that support this, so this is the way we're going.
ATF website:
https://www.atf.gov/firearms/docs/undefined/atf-national-firearms-act-handbook-chapter-9/download
9.5.3 Distribution of estate firearms.
A decedent’s registered NFA firearms may be conveyed taxexempt to lawful heirs. These distributions are not treated as voluntary “transfers” under the NFA.
Rather, they are considered to be involuntary “transfers by operation of law.” Under this concept, ATF
will honor State court decisions relative to the ownership and right to possess NFA firearms. So, when
State courts authorize the distribution of estate firearms to decedents’ lawful heirs, ATF will approve the
distribution and registration to the heirs if the transactions are otherwise lawful. A lawful heir is anyone
named in the decedent’s will or, in the absence of a will, anyone entitled to inherit under the laws of the
State in which the decedent last resided.
9.5.3.1 Distributions to heirs.
Although these distributions are not treated as “transfers” for
purposes of the NFA, Form 5 must be filed by an executor or administrator to register a firearm
to a lawful heir and the form must be approved by ATF prior to distribution to the heir. The
form should be filed as soon as possible. However, ATF will allow a reasonable time to arrange
for the transfer. This generally should be done before probate is closed. When a firearm is being
transferred to an individual heir, his or her fingerprints on FBI Forms FD-258 must accompany
the transfer application. The application will be denied if the heir’s receipt or possession of the
firearm would violate Federal, State, or local law. The law enforcement certification on the form
need not be completed. The form should also be accompanied by documentation showing the
executor’s or administrator’s authority to distribute the firearm as well as the heir’s entitlement
to the firearm. Distributions to heirs should not be made until Forms 5 are approved. Executors
and administrators are not required to have estate firearms registered to them prior to distribution
to lawful heirs.
============================
silencerco.com
https://silencerco.com/blog/what-happens-to-your-suppressor-when-youre-gone/
Individual Ownership
The first ownership option is to buy your suppressor as an individual. This option allows only you and people under your direct supervision to handle the suppressor. You must be present and involved even with close family members.
Individual ownership means that anyone to whom you might will your suppressor to must go through the same ATF background checks that you did before taking possession. That person would qualify for a one-time free transfer via NFA Form 5, absolving them from paying for the $200 tax stamp. Your estate’s executor would hold the suppressor until the process is complete. If you choose not to pass your suppressor on, or if the beneficiary doesn’t want it or is ineligible, the executor will surrender it to the ATF.
================================
silencercentral.com
https://www.silencercentral.com/blog/what-happens-to-your-silencer-when-you-die/
The second scenario is that you purchased your silencer as an individual. If this is your situation, it may be a good idea to have your will drawn up so you can declare who the silencer will be passed on to. After your death, there can be a free transfer to the beneficiary of the silencer. Your beneficiary will fill out similar paperwork you completed – ATF Form 5 (which is a form for a tax-free transfer), fingerprint cards, certification of compliance form- and submit the forms for the same background check you had. Once the forms are approved, the silencer can be transferred to the new owner. In the interim period, while the forms are being processed, the silencer is held by the executor of the will.
It is only in cases in which absolutely no one wants the silencer or is eligible to own the silencer after your death that the silencer may be turned over to ATF and destroyed. Even in that situation though, a dealer may still be willing to take the silencer to resell it.
======================================
esilencers.com
https://esilencers.com/passing-nfa-items-down-to-your-heirs-without-a-trust/
So, with that said, what really happens to your NFA items when you die if they were filed as an Individual? There are so many misconceptions out there that say that the government will take control of your NFA items. However, the purpose of this article is to debunk these misconceptions. Considering that even though you filed as an Individual, and not as a Trust, you will still be able to pass these NFA items down to your heirs. Below is what to do.
What do I need to do if my NFA items are listed in my name only(Individual), and not on a Trust?
You first want to include in your Will that all your NFA items will pass down to your stated heirs. This is where having a lawyer draft a Will comes into place. You need a Will anyways, so speak with your Attorney about including your NFA items in your Will.
You will then need to speak with a reputable Class 3 Dealer(we can help you) who is knowledgeable in paperwork. Once you die, the NFA items will need to be transferred to the heirs of the Will. They will need to complete a Form 5 tax free application for each NFA item, and submit them to the ATF for approval. The Form 5 application is a tax free transfer. So, there will be no need to pay the $200 tax stamp for each NFA item again.
You will need to have all your NFA items secured in a safe location with the address associated with the Form 4’s. They will need to be secured safely until the Form 5 paperwork is approved.
Once the Form 5 applications are approved, the heirs will be able to legally take possession.
We're working with a lawyer to make up our will and at first she recommended I get a gun lawyer to make a trust.
But I did some research.
It seems to be easier and cheaper to just specify who will get the item in the will. Then the executor holds onto the item until the named recipient fills out forms and passes background checks, then the executor passes the item to the beneficiary. No transfer fees or tax stamps need to be purchased.
This will save me the trouble and money of getting a gun lawyer to draw up a trust, and I'd have to pay the $200 tax to get it put into the trust.
Here are links with info from the ATF site and others that support this, so this is the way we're going.
ATF website:
https://www.atf.gov/firearms/docs/undefined/atf-national-firearms-act-handbook-chapter-9/download
9.5.3 Distribution of estate firearms.
A decedent’s registered NFA firearms may be conveyed taxexempt to lawful heirs. These distributions are not treated as voluntary “transfers” under the NFA.
Rather, they are considered to be involuntary “transfers by operation of law.” Under this concept, ATF
will honor State court decisions relative to the ownership and right to possess NFA firearms. So, when
State courts authorize the distribution of estate firearms to decedents’ lawful heirs, ATF will approve the
distribution and registration to the heirs if the transactions are otherwise lawful. A lawful heir is anyone
named in the decedent’s will or, in the absence of a will, anyone entitled to inherit under the laws of the
State in which the decedent last resided.
9.5.3.1 Distributions to heirs.
Although these distributions are not treated as “transfers” for
purposes of the NFA, Form 5 must be filed by an executor or administrator to register a firearm
to a lawful heir and the form must be approved by ATF prior to distribution to the heir. The
form should be filed as soon as possible. However, ATF will allow a reasonable time to arrange
for the transfer. This generally should be done before probate is closed. When a firearm is being
transferred to an individual heir, his or her fingerprints on FBI Forms FD-258 must accompany
the transfer application. The application will be denied if the heir’s receipt or possession of the
firearm would violate Federal, State, or local law. The law enforcement certification on the form
need not be completed. The form should also be accompanied by documentation showing the
executor’s or administrator’s authority to distribute the firearm as well as the heir’s entitlement
to the firearm. Distributions to heirs should not be made until Forms 5 are approved. Executors
and administrators are not required to have estate firearms registered to them prior to distribution
to lawful heirs.
============================
silencerco.com
https://silencerco.com/blog/what-happens-to-your-suppressor-when-youre-gone/
Individual Ownership
The first ownership option is to buy your suppressor as an individual. This option allows only you and people under your direct supervision to handle the suppressor. You must be present and involved even with close family members.
Individual ownership means that anyone to whom you might will your suppressor to must go through the same ATF background checks that you did before taking possession. That person would qualify for a one-time free transfer via NFA Form 5, absolving them from paying for the $200 tax stamp. Your estate’s executor would hold the suppressor until the process is complete. If you choose not to pass your suppressor on, or if the beneficiary doesn’t want it or is ineligible, the executor will surrender it to the ATF.
================================
silencercentral.com
https://www.silencercentral.com/blog/what-happens-to-your-silencer-when-you-die/
The second scenario is that you purchased your silencer as an individual. If this is your situation, it may be a good idea to have your will drawn up so you can declare who the silencer will be passed on to. After your death, there can be a free transfer to the beneficiary of the silencer. Your beneficiary will fill out similar paperwork you completed – ATF Form 5 (which is a form for a tax-free transfer), fingerprint cards, certification of compliance form- and submit the forms for the same background check you had. Once the forms are approved, the silencer can be transferred to the new owner. In the interim period, while the forms are being processed, the silencer is held by the executor of the will.
It is only in cases in which absolutely no one wants the silencer or is eligible to own the silencer after your death that the silencer may be turned over to ATF and destroyed. Even in that situation though, a dealer may still be willing to take the silencer to resell it.
======================================
esilencers.com
https://esilencers.com/passing-nfa-items-down-to-your-heirs-without-a-trust/
So, with that said, what really happens to your NFA items when you die if they were filed as an Individual? There are so many misconceptions out there that say that the government will take control of your NFA items. However, the purpose of this article is to debunk these misconceptions. Considering that even though you filed as an Individual, and not as a Trust, you will still be able to pass these NFA items down to your heirs. Below is what to do.
What do I need to do if my NFA items are listed in my name only(Individual), and not on a Trust?
You first want to include in your Will that all your NFA items will pass down to your stated heirs. This is where having a lawyer draft a Will comes into place. You need a Will anyways, so speak with your Attorney about including your NFA items in your Will.
You will then need to speak with a reputable Class 3 Dealer(we can help you) who is knowledgeable in paperwork. Once you die, the NFA items will need to be transferred to the heirs of the Will. They will need to complete a Form 5 tax free application for each NFA item, and submit them to the ATF for approval. The Form 5 application is a tax free transfer. So, there will be no need to pay the $200 tax stamp for each NFA item again.
You will need to have all your NFA items secured in a safe location with the address associated with the Form 4’s. They will need to be secured safely until the Form 5 paperwork is approved.
Once the Form 5 applications are approved, the heirs will be able to legally take possession.
