New Gun Trust Rules Published and Will Be Effective June 28, 2016
Article first appeared at Ammoland.com
Ammoland – The Department of Justice started the New Year with a January 4, 2016 long awaited final ruling amending the BATF’s rules for NFA Firearms Trusts.
The new federal regulations will go into effect in 180 days, being approximately June 29, 2016, so ACT NOW TO TAKE ADVANTAGE OF THE CURRENT RULES!
The new regulations will amend the BATF’s Form 1 (for making a NFA firearm such as a SBR) and Form 4 (for acquiring a NFA device such as a suppressor) to require an FBI fingerprint card and a 2″x2″ current photo for each “Responsible Persons” listed on a Trust, Partnership, Corporation, or other Entity applicant.
“Responsible Persons” is very broadly defined to include “any grantor, trustee, beneficiary, partner, member, officer, director, board member, owner, shareholder or manager who possesses, directly or indirectly, the power or authority under any trust instrument, contract, agreement, article, certificate, bylaw, or instrument or under State law, to receive, possess, ship, transport, deliver, transfer or otherwise dispose of a firearm for, or on behalf of, the trust or entity.”
Reports that the new regulation will NOT apply to trust “beneficiaries” are wrong, because the new regulations specifically include “beneficiaries,” unless there is specific language in your Trust Document that conforms to the language of the new regulations. NFA Firearms Trust’s trust document has already anticipated this rule change, which was first published in 2013, so its document fully conforms to protect “beneficiaries.”
The only good news is that the current Chief Law Enforcement Officer (“CLEO”) approval requirement has been eliminated and downgraded into a notification provision, requiring each applicant to simply send a completed copy of the Form 1 or 4 to their CLEO.
There are some additional minor requirements and fully published new regulations are almost 250 pages long, so it will take a while for the Gun Lawyers to all carefully review this and report further.
The first clear and immediate “take away” is that NOW IS THE TIME TO ACT if you have been planning on creating a NFA Firearms Trust for making or acquiring a SBR or Suppressor.
NFAFirearmsTrust.com will be carefully reviewing this new federal regulation and amending its NFAFirearmsTrust document to fully comply with this new regulation prior to June 28.
NFA Firearms Trust will also be making its amendments and its new trust document available to all of of its current customers as an additional benefit.
Please do not hesitate to call or email if you have any additional questions. My direct dial number is 404-364-2245.
Jim & Matt