Monday, September 23, 2013

Proposed Changes to ATF Regulation of NFA Trusts

            The National Firearms Act (NFA) sets forth procedural and substantive requirements regarding the transfer, identification, registration of, and the dealing in, machine guns, silencers, short barreled rifles/shotguns, and certain other firearms.

            Recently, the Obama Administration in conjunction with the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) suggested several changes to the current regulations.  One of the suggested changes imposes additional and substantial restrictions on citizens who wish to obtain an NFA firearm through a trust. 

            The proposed regulatory changes can be found at: Background Checks for Responsible Persons of a Trust with Respect to Obtaining a Firearm, 78 Fed. Reg. 55,014 (Sept. 9, 2013) (to be codified at 27 C.F.R. pt. 479).  The proposed changes are summarized as follows:

1.     Requirements to receive an NFA firearm through a trust:

a.   Each “responsible person” named in the trust must complete a Form 5320.23 (Form 4 replacement).  Definition of “responsible person”: “In the case of a trust, any individual, including any grantor, trustee, or beneficiary, who possesses, directly or indirectly, the power or authority under any trust instrument or other document, or under state law, to receive, possess, ship, transport, deliver, transfer, or otherwise dispose of a firearm for, or on behalf of, the trust.”  The Form will require the person’s name, position in the trust, home address, SSN (optional), birth date, place of birth, and country of citizenship.  (The information will be used by the ATF to conduct a background check on each person named in the trust.)  Any additions to the responsible persons named in the trust must be submitted to the ATF within 30 days via Form 5320.23. “ATF recognizes that the composition of the responsible persons associated with a trust…may change, and is considering a requirement that new responsible persons submit Form 5320.23 within 30 days of the change.” 78 Fed. Reg. at 55,020.

b.  Each “responsible person” must submit fingerprints, photographs, and a certificate signed by the local Chief Law Enforcement Officer ("CLEO").  (Nothing in the proposed rule changes that fact that a CLEO signature is completely voluntary.) 

c.     The application must include a copy of the documentation that establishes the legal existence of the legal entity (e.g., declaration of trust).

GET YOUR GUN TRUST WHILE YOU STILL CAN

Davis Basta Law Firm, P.A.
31111 U.S. Highway 19 North
Palm Harbor, FL 34684
(727) 938-2255
www.davisbastalaw.com




 

Monday, September 9, 2013

Obama's New Restrictions on Gun Trusts

Obama's New Restrictions on Gun Trusts

         The Obama Administration has recently made an announcement that they plan to implement new laws that will further restrict the rights of American gun owners who seek to possess firearms through a NFA Trust or “gun trust.”  The laws will supposedly be in the form of an executive order, which essentially allows a president to make laws without Congressional approval.  The proposed executive order has not been published in the Federal Register and is not yet a law.  (Executive orders take effect 30 days after they are published in the Federal Register).  The only information available regarding the proposed executive order includes statements made by the president and vice-president.  According to recent news reports, the substance of the new law is as follows:


1.     The Obama administration says the executive order closes a loophole that allows felons and other ineligible gun purchasers to skirt the law by registering certain guns to a corporation or trust.  “At present, when the weapon is registered to a trust or corporation, no background check is run.”  The new rule requires people associated with those entities, like beneficiaries and trustees, to undergo a fingerprint-based background checks before the corporation can register those guns.

2.    On August 29, 2013, in a seemingly combined effort with the Obama Administration, ATF issued a new proposed regulation that requires individuals associated with trusts or corporations that acquire Class III weapons to undergo background checks, just as these individuals would if the weapons were registered to them individually.


         The public will have to wait until the executive order is actually published in the Federal Register to fully understand how it will affect those individuals named under NFA trusts.  Nonetheless, President Obama’s repeated calls for more restriction on gun ownership should serve as a signal to the American people that more laws restricting gun ownership are coming.  Some of these laws will undoubtedly be targeted at gun trusts; as such, we advise our clients to secure a gun trust while it is still a viable method of obtaining and owning certain firearms. 

         The natural response to such attempts to limit gun ownership will be a larger black market for firearms.  The demand for guns will be met through smuggling, theft from weapons manufacturers, bribing government officials, and private manufacturing.  Private ownership of private unregistered (and therefore untraceable) weapons will likely continue to increase, thanks to the now obvious intentions of the Obama administration to wage its war on guns.


Fort Lauderdale Gun Show - September 21-22, 2013

We would love to have you join us at the Ft. Lauderdale Gun Show on September 21st and 22nd at the War Memorial Auditorium.  We will be sharing space with the University Gun & Pawn Shop. Please visit our booth at the show for more information regarding NFA gun trusts. We will be happy to answer any questions you may have at the show or visit our website at floridaguntrust.com.


War Memorial Auditorium
PH. (954) 828-5380
800 N.E. 8th Street
Ft. Lauderdale, FL 33304
HOURS: Sat 9am - 5pm | Sun. 10am - 5pm

ADMISSION:
Adults $8.00
KidsFree
(12 & under)

All persons under 18
years of age must be
accompanied by an adult.

The Fort  Lauderdale Gun Show is a favorite for local gun collectors, hunters, and enthusiast. Dealers and private collectors from across the state of Florida exhibit at this show. You'll find a huge selection of guns, accessories, and many hard to find items. Make sure you do not miss the next Suncoast Gun Show coming to the War Memorial Auditorium. See:  www.suncoastgunshows.com