Texas Gun Trust

Texas has the highest number of registered firearms in the country. It’s clear that many Texans love their guns. Most gun owners have a general understanding that certain types of their firearms are subject to the National Firearms Act (NFA) which regulates and monitors the circulation of specific firearms and accessories that are considered more dangerous or have a higher potential for misuse than typical firearms.

The legislative purpose of the NFA is to require registration of a class of firearms to prevent the items from falling into the hands of criminals or being used unlawfully. The following weapons are regulated under the National Firearms Act:

• a shotgun having a barrel or barrels of less than 18 inches in length;
• a weapon made from a shotgun if such weapon as modified has an overall length of less than 26 inches or a barrel or barrels of less than 18 inches in length;
• a rifle having a barrel or barrels of less than 16 inches in length;
• 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;
• a machinegun;
• a silencer; and,
• a destructive device.

So, what does a Texas Gun Trust have to do with the NFA, you may be asking.

To facilitate the acquisition, ownership, and eventual transfer of your firearms, particularly those regulated by the National Firearms Act, you must take precautions to ensure those transactions – and your management of firearms — are compliant with the law. One method Texans can use to manage and transfer their regulated firearms is to use a NFA Trust, or in Texas what we call a Texas Gun Trust.

Assets you transfer to any Texas trust become the property of that trust and are no longer considered your property. As the trust’s grantor, you assign your assets to the trust as part of your estate planning. Via a trust agreement, you designate the trust’s beneficiaries and a trustee, which is someone to oversee the trust. A gun trust is a special type of trust that is created to hold NFA-regulated firearms. They have specific terms that ensure the grantor, trustee, and beneficiaries comply with the NFA.

If you have NFA-regulated firearms that you’d like to pass on to your heirs as part of your estate plan, a gun trust may be a good option for you. It’s important to understand the advantages and disadvantages so you can make an informed decision. 

There are many advantages to having a Texas Gun Trust: 

• the trust helps you as a gun owner minimize risk and ensure compliance with the law;
• the firearms you place in the trust can be used by anyone you name as a trustee;
• the trust can include multiple trustees and beneficiaries, which means firearms can be shared among family members or friends;
• keeping firearms in trust helps heirs avoid unwieldy transfer procedures;
• if a gun owner becomes incapacitated, the trust provides clear instructions to prevent family members from unwittingly violating laws; and,
• guns held in trust are not subject to probate upon the gun owner’s death; the trust’s terms of distribution remain private.

NFA gun trusts cannot be used to take shortcuts or avoid NFA regulations. There are still tax stamps and waiting periods that gun owners or prospective owners must deal with, even if you establish a gun trust. Because the NFA considers a trustee as a “responsible party” under the law, everyone you name as a trustee must submit their fingerprints and photographs as part of an ATF application to own a weapon.

Keep in mind that even if your beneficiaries receive the firearms from the trust after your death, the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) must still be notified about who owns the guns.

When you’ve decided a Texas Gun Trust is the best choice for managing and transferring your firearms, reach out to an estate planning attorney who has experience with these trusts. Even the smallest mistake can lead to serious consequences.

The attorneys at Reagan Moore can help ensure your Texas Gun Trust is properly structured to address all regulations relevant to your gun ownership. But first, we want to hear about your firearms and how you want to manage and distribute them. Understanding your goals will shape our strategy for you. We’re here to discuss your options.