These terms get a lot of people really confused. Which, is understandable, as the terms are so frequently misused. In a nut-shell: Type refers to the Gun Dealer’s Federal Firearms License (FFL); Title refers to the type of firearm; and Class refers to a Firearms Dealer’s Special Occupational Tax (SOT). Here is a bit more detail on each of the terms:
Types of Federal Firearms Licenses
Dealer in Firearms Other Than destructive devices
Pawnbroker in Firearms Other Than Destructive Devices
Collector of Curios and Relics
Manufacturer of Ammunition
Manufacturer of Firearms Other Than Destructive Devices
Importer of Firearms Other Than Destructive Devices
Title I of the Gun Control Act defines rifles, shotguns, handguns, etc.
Title II of the Gun Control Act (a/k/a the The National Firearms Act), defines Short-barreled rifles (SBR’s), Short-barreled shotguns (SBS’s), Machine Guns, Silencers, Destructive Devices, and AOW’s (Any Other Weapon)
Classes of SOT
SOT stands for Special Occupational Tax, which a firearms dealer must have in order to become involved in the importing, selling, or transferring of NFA (Title II) Firearms items. Class stands for the particular Class of Special Occupational Tax (SOT) a Gun Dealer needs to have, depending of which activity they are engaged in.
A Firearms Dealer with a Class 1 SOT is an Importer of NFA firearms. To be eligible for a Class 1 SOT, a Dealer must have a Type 8 or 11 FFL
A Firearms Dealer with a Class 2 SOT is a Manufacturer & dealer of NFA firearms. To be eligible for a Class 2 SOT, a Dealer must have a Type 7 or 10 FFL.
A Firearms Dealer with a Class 3 SOT is a Dealer of NFA firearms. To be eligible for a Class 3 SOT, a Dealer must have a Type 1 or 2 FFL
So, the next time you hear someone say “Class 3 Firearms,” you can politely explain that Class 3 refers to the class of SOT the Type 07 firearms dealer needs, before they can sell Title II Firearms
Funding your trust is when you give some property to your trust. If your trust isn’t funded, then it doesn’t actually exist.
There are several good methods for funding a trust. For example you can:
Give a $1, $5, $10, etc. Bill to your trust
>Open a checking account and deposit some money into the account
Give one of your Title I (personal) firearms to the trust
There are different ways you can give property to a trust. The Trust Shop uses Assignment Sheets, which are documents that include a description of the property (serial numbers in the case of cash), the date the property is transferred, and the Settlor’s or Trustee’s signature.
One of the benefits of using the Trust Shop is that you get an unlimited number of Assignment Sheets to use for transferring property into your trust. And, we don’t just send you a bunch of blank forms… We help you fill them out!
Do I need to have my Gun Trust with me at the range?
You always need to have a copy of your Gun Trust and your ATF Tax Stamp with you whenever you are in possession of your Silencer or SBR.
Here are a few suggestions about what you should do with your Gun Trust:
Always have a copy of your Gun Trust with you when you have your NFA Firearms with you.
Keep the original signed Gun Trust in your safe of safe deposit box. Never send your original to the ATF!
Scan your Gun Trust into your computer in PDF format
If you can’t save the PDF to your phone, use your phone to take pictures of each page of the Gun Trust
Print out several copies of your Gun Trust
Give each Co-Trustee a paper copy of the Gun Trust, as well as an electronic PDF version
Give a copy to your Successor Trustee
Put a copy of your Gun Trust in all of your vehicles
Keep a copy of your Gun Trust in your range bag
Stick a copy in the gun case of each NFA Firearm
Make sure you attach a copy of all Assignment Sheets and Tax Stamps to each copy of your Gun Trust (both paper and electronic versions). Us guys at the Trust Shop put a copy into a zip-lock bag before putting it into our rage bag, gun case, etc. Each time we purchase a new silencer (or SBR), we attach a copy of the new Assignment Sheet to each copy of our Gun Trust. When we receive a new Tax Stamp, we make a bunch of copies and attach one to each copy of our Gun Trust. We always scan the new Tax Stamp into PDF format and then put the original Tax Stamp into the gun safe.
When you submit your Gun Trust to the ATF with your Form 1 or Form 4, Never send them the original Gun Trust. The ATF will not return your Gun Trust documents when they mail your new Tax Stamp to you.
Note: The copy of your Gun Trust that you send to the ATF should not contain copies of previous Assignment Sheets or Tax Stamps. Only attach a copy of the current Assignment Sheet that provides the specifics of the Firearm listed on the Form 1 or Form 4
Consider creating a miniature laminated version of your gun trust, as it is a great way to make sure you always have a copy of your trust on hand
You never need to file an annual report or pay taxes on your Gun Trust. If you decide to open a bank account for your Gun Trust, you will use your personal Social Security Number. You do not need to get a Tax Payer ID Number (EIN). This way you won’t need to file a separate tax return if your Gun Trust makes a bunch of money by selling some of its property.
Will you help me fill out my Silencer Application?
If you ever have any questions when you are filling out your Form 1, 4, 20, or 23, we are here to help! The Trust Shop gives you a bunch of options when you need assistance. Choose from one of the following:
Contact us and we will give you one-on-one assistance
Follow the comprehensive Directions Packet you received with your Gun Trust
Or, Use one the Trust Shop Automated Form Generators – with detailed explanations and easy to follow instructions. We walk you through the Application process and email a copy of the completed Form directly to you
Regardless of the method you choose, the Trust Shop is here to make sure your ATF Forms get filled out the right way. If you aren’t completely convinced, you should read some of our Customer’s Testimonials.
Gun Trusts provide many benefits, but there are several benefits that really stand out from the rest.
All of the firearms in a Gun Trust avoid the probate process. This means your Beneficiaries will receive the NFA items without the interference of the courts. You save a lot of money in court costs, eliminate any public record concerning the NFA items, and expedite the transfer process
With a Gun Trust you can have Co-Trustees that are able to legally possess the NFA firearms in the gun trust. Co-Trustees can be added or removed (free if you use the Trust Shop) at any time. However, if an NFA item is owned by an individual, only that person can legally possess the NFA item.
If you own NFA items as an individual and something happens to you that makes you a “Prohibited Person,” you will lose your NFA firearms. This happens because you are the only person legally allowed to possess them. The ATF swoops in and takes the NFA firearms from you and they are automatically destroyed.
People often think this isn’t an issue that could ever affect them, but it actually happens all the time. Did you know that all it takes to become a “Prohibited Person” is for someone to file a restraining order against you? You don’t even have to be found guilty of anything, just accused. All that has to happen is for someone to convince a judge that they are scared of you. This happens all the time in divorce cases and domestic situations. This is just one example of the many things that can happen to make you a Prohibited Person.
Unlike the situation above, if your firearms are in a Gun Trust and a restraining order is filed against you, the trust firearms can be given to a Co-Trustee or the Successor Trustee until you get through the “Restraining order Period.” That way you will get all of your toys back.
Do ATF Applications need to be printed front-to-back (2-sided)?
The ATF finally came to their senses… at least about double-sided printing.
The ATF Application Directions state the following:
Photocopies, Computer Generated Versions, or Downloaded Version. The form may be copied or downloaded (for example, from the ATF website (www.atf.gov)). The form does not have to be printed front to back.
At least one thing makes sense on the ATF Applications!
Technically a family trust is legal to use for an NFA Firearm, but it simply isn’t worth it. Family revocable living trusts don’t contain the correct language or laws concerning NFA items and very few are ATF & 41F compliant. It is very important for the trust to specifically and clearly reflect the laws from the National Firearms Act, as well as the individual state laws. And, it is particularly important that the trust give a detailed explanation of who is considered a “Prohibited Person“
A gun trust is special type of trust designed to address issues that are unique to firearms, which are one of the most heavily-regulated types of personal property in the United States. The Trust Shop NFA Gun Trust is a specialized revocable living trust that describes the rules and regulations relating to the use, possession, and transfer of firearms.
You probably paid more than $500 for your family revocable trust, but it isn’t made for NFA Firearms. That’s why you should get the $49 NFA Gun Trust from the Trust Shop.
Can I avoid the fingerprint and mugshot requirement?
The ATF requires all “Responsible Persons” to submit a Form 23 (Responsible Person Questionnaire), fingerprints, and mugshots anytime the Gun Trust submits a Form 1, Form 4, or Form 5 Application. This means all Trustees & Co-Trustees must complete the Responsible Person process.
The only way to avoid submitting the paperwork for Responsible Persons (other than yourself) is by not having any Co-Trustees at the time you send in your Application. If you don’t have Co-Trustees when you create your Gun Trust, you are the only person that needs to submit the Form 23 (Responsible Person Questionnaire), fingerprint cards, and photos. Then, after you receive your Tax Stamp (approved Silencer or SBR application), you can add Co-Trustees without needing to send any additional paperwork to the ATF.
“Once an application has been approved, no documentation is required to be submitted to ATF when a new responsible person is added to a trust or legal entity. However, should a responsible person change after the application has been submitted, but before it is approved, the applicant or transferee must contact the NFA Branch for guidance.”
So, if you add Co-Trustees after receiving your Tax Stamp, no Responsible Person paperwork is required. However, if you still have Co-Trustees when you apply for your next Silencer or SBR, you either have to remove them as Co-Trustees or they will be required to submit the Responsible Person paperwork.
If you have questions about Responsible Persons, you can contact the NFA Branch of the ATF:
Though continually adding and removing Co-Trustees provides a solution to the Responsible Person process, repeatedly changing your Gun trust can get very expensive. Unless, of course, you use the Trust Shop, where you get Free Unlimited Changes for Life!
Warning: If you see a Gun Trust company advertising Special Gun Trust Language that lets you share your NFA items with others, without the need of going through the Responsible Persons process, you should run far, far away! Believe it or not, this is a new advertising tactic being used by several Gun Trust websites. And, people are sharing this misinformation on several of the major firearms forums. When we heard about this nonsense, we contacted the ATF – NFA Branch to find out if they had seen any of these trusts. According to the Investigator we spoke to, all applications from Gun Trusts using the bogus language get denied automatically.
If you get your Gun Trust from the Trust Shop, you get free revisions for life! That means you can make changes to your Trust as often as you want, without any cost to you. If you want to know what previous Trust Shop customers think about the “Free Revisions For Life, you should read some of the Trust Shop Customer Reviews
Creating your Gun Trust is easy when you use the Trust Shop. We created an easy to follow information form that has detailed explanations to guide you through the process. As soon as you submit your information, the Trust Shop lawyer will review your answers to make sure everything looks good. Within a few hours you will receive your new Gun Trust along with a packet of instructions on how to finalize your trust, as well as FAQ’s on the Form 1 and 4 Tax Stamp application process.
Can I use my personal money to buy things for my Gun Trust?
Yes you can. But there are a few things you will need to do.
To make sure your trust property is protected you must follow certain guidelines. One of those guidelines is that you cannot commingle funds. Commingling is when you mix your personal money and trust money together. Commingling usually occurs when a person uses their personal money to buy something for the trust, or uses trust money to pay for a personal item.
Then how is it okay to buy something for my trust using my personal money?
As long as you attach a document to the trust explaining that personal funds were used to purchase something for the trust, you’ll be fine. This document is known as Memorandum of Contribution (MOC), which lists the date, amount, & name of the item that was purchased for the trust. It also states the type of payment used, the name of the store, & gets signed by the Settlor or Trustee
The Memorandum of contributions is only one of the many benefits you get with a Trust Shop NFA Gun Trust
One Gun Trust is all you ever need! As soon as you create your Gun Trust, you can use it for every Silencer & SBR you buy or build
Then how is it okay to buy something for my trust using my personal money?
Additionally, you can use your Gun Trust for your personal (Title I) firearms collection. Giving your personal firearms to your Gun Trust gives you the power to decide who will inherit your firearms, without any need for costly & time consuming probate proceedings.
The National Firearms Act (NFA) was passed in 1934 as an attempt to deter gangsters (like Al Capone) from shooting up the town and committing other violent crimes. The Feds reasoned that crime would go away if they taxed the guns used by the gangsters. The original amount of the tax was $200, which has remained unchanged to this day. We know $200 doesn’t sound like a very significant deterrent to crime, but did you know that $200 in 1934 is equivalent to $3800 today. Nevertheless, as criminals don’t register their guns, so the tax only imposes a burden on law abiding citizens & restricts their freedom to bear arms, as guaranteed under the 2nd Amendment.
Firearms subject to the 1934 Act include:
Shotgun with a barrel (or barrels) 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;
any other weapon, as defined in subsection (e);
a machine gun;
any silencer (as defined in section 921 of title 18, United States Code); and
There are two ways that an individual, trust, corporation, limited liability company, or partnership, may legally acquire NFA firearms:
Purchase an NFA item. You must first submit a Form 4 (Application for Tax Paid Transfer and Registration of Firearm) & $200 to the ATF. Once you receive your Tax Stamp (approval to transfer) from the ATF, you can pick up your NFA item from the Gun Store.
Manufacture an NFA item. You must first submit a Form 1 (Application to Make and Register a Firearm) & $200 to the ATF. Once you receive your Tax Stamp (approval to manufacture) from the ATF, you can assemble all the parts & pieces of your NFA item.
But, the 1st thing you should do is create your Gun Trust
The idea that you can have different “Levels” of a Gun Trust is absurd! A Trust… is a Trust… is a Trust! Either your Gun Trust is a Revocable (Living) Gun Trust or it is nothing.
Let’s look at the definitions for the terms Revocable and Gun Trust
Revocable: Means you can add or remove property from the trust, add or remove beneficiaries, and add or remove Co-Trustees. If a company that sells Gun Trusts says you have to pay more for any of these features, by definition the original Gun Trust was not a Revocable Living Trust. What’s really happening (in most cases) is that the “lower-level” trusts are completely capable of being revised, amended, or changed, but the company won’t tell you how to do it without receiving additional money.
Gun Trust: Means a Revocable Trust specifically designed to hold NFA items and facilitate the transfer of these items when the Settlor (person creating the trust) dies.
So, the way we see it here at the Trust Shop is that you either buy a Revocable Living Gun Trust, or you don’t. There is no middle ground! And that’s why we don’t offer different Levels or Packages!
Ask yourself this: If a company is selling different levels or packages of a Gun Trust, what is the difference between the lower-tier and upper-tier trust? If the difference is that you can’t add Co-Trustees or Beneficiaries, then the Gun Trust isn’t a valid Revocable Living trust in the first place. If the difference is that the lower-tier trust doesn’t have the necessary NFA language, then it isn’t an NFA Gun Trust. If the difference is that you can’t add additional NFA items to the trust, it isn’t a valid Revocable Living Trust.
There are only two things that can legitimately give rise to different “Levels” of Gun Trusts. 1. The lower level trust may not include support, while support is free of charge with the upper level trust. 2. The lower level trust may not include free changes, while the upper level trust provides them free of charge.
Don’t get us wrong… It’s okay for a company to charge you to make changes or for providing support (as long as they tell you about the charges up front). The Trust Shop simply chooses not to charge for these benefits. We provide these services because Gun Trusts only work correctly when you have access to support and the modifications. Because we want to make sure our customers keep their Gun Trusts completely up to date, the Trust Shop provides free changes for life. And, because the process of applying for a Tax Stamp can be so confusing, we provide unlimited support, completely free of charge!
The Trust Shop actually got its start because of some of this nonsense. Two buddies (both lawyers without specialized knowledge of Gun Trusts) were at the gun range when they saw someone shooting a fully-automatic machine gun with a silencer. After asking a few questions of the shooter, the friends became aware that ownership of these items was completely legal. SO, these guys decided they each needed to get a Gun Trust and start purchasing fun NFA toys. After a bit of research, they chose a “Recommended” Gun Trust attorney to draft their Gun Trusts. One of the guys had more money than he knew what to do with, so he opted for the highest level Gun Trust, which cost him $999 The other guy couldn’t swing that high of a cost, so he opted for the “Entry Level” Gun Trust that cost $299. Several weeks later when the guys met back at the shooting range, they started comparing the two Gun Trusts. Guess what they discovered? The Gun Trusts were word-for-word identical carbon copies of one another. Outraged that they had been so gullible, the buddies began researching Gun Trusts. The result was the creation of the first truly comprehensive and all-inclusive Gun Trust. Ten years later the Trust Shop was serving every state in the country, with the same comprehensive and inclusive Gun Trusts, specially adapted to the laws of each individual state.
When you buy a Gun Trust from the Trust Shop, you get every possible trust feature allowable by law. You also get:
Free changes/revisions for life
Comprehensive directions packet detailing “What To Do” and “What Not To Do”
Unlimited Assignment Sheets to use for Form 1 & Form 4 Applications
Unlimited Support from the Trust Shop Gun Trust Lawyers
Access to the Trust Shop ATF Form System
Confidence that your Gun Trust is ATF & 41F Compliant
Updates on all ATF issues that affect your Gun Trust
You get all of this for only $49. What are you waiting for?
Every state has different laws about how long a Gun Trust can last. The old Common Law Rule (known as the Rule Against Perpetuities) states that no trust can last longer than the life of the Settlor/Creator + 21 Years. However, most states have moved away from the Rule Against Perpetuities, choosing to adopt their own state-specific time limits (or no limit at all).
In order to maximize the length of your trust, the Trust Shop Gun Trust includes language that extends the life of your trust as far beyond the your death, as is allowed by your state’s laws. However, we also added language that gives your Successor Trustee the option to terminate the trust at an earlier point, if that is your wish.
Note: Beware of companies that claim their Gun Trusts are perpetual, as the majority of states have set limits on how long your trust can last, regardless of what the trust language says.
Absolutely! One Gun Trust is all you ever need! Once you Create your Gun Trust, you can use it for both your NFA Firearms (Title II) and your personal (Title I) firearms collection. Giving your personal firearms to your Gun Trust gives you the power to decide who should inherit them, and it completely eliminates the costly & time consuming probate process.
Putting your personal firearms into your Gun Trust will save your loved ones thousands of dollars in lawyer fees and probate court costs. Even if you never buy a single NFA Firearm, creating a Gun Trust for your personal firearms collection is a smart estate planning move on your part!
Additionally, when you give your personal firearms to your Gun Trust, you are also funding your trust. That’s because your trust becomes the owner of something that has value. Putting your personal firearms into your Gun Trust is not only OK, but it is what we recommend to all of our customers.
Do I need to record my Gun Trust at the Court House?
It depends. In most states your Gun Trust does not need to be recorded with the state or local government. That is because NFA Gun Trusts are completely private and only need to be shown to someone else if you open a bank account for your Gun Trust or submit an application to the ATF.
The states that require some type of Registration are:
Though these six states require you to register your trust at the local Court House, there is no penalty for failing to register. And all of these states (except Hawaii) allow you to register using a Certificate of Trust instead of a full version of the Gun Trust, that means you can keep the contents of your trust private (nobody will know it is a Gun Trust).
If you see a Gun Trusts that uses a Schedule A, it was either created by an attorney that does not understand gun trusts, or it simply wasn’t created by an attorney.
When you use your Gun Trust to submit a Form 1 or Form 4 Application, you have to prove to the ATF that the trust owns the Silencer, SBR, Machine Gun, etc. This can be accomplished by attaching a ‘Schedule’ to your Gun Trust (a terrible idea) or by using an Assignment Form (WooHoo!)
A ‘Schedule’ is a complete inventory of the property held by the trust. Because ‘Schedules’ are a permanent part of the trust, anytime you submit a copy of your trust to the ATF, you are giving them your entire Gun Trust inventory. Not only is the property in your Gun Trust nobody’s business, but complete inventory lists can cause you a lot of trouble. Because there are times that you will be required to show a complete copy of your Gun Trust to someone (such as ATF Agents, bank employees, and gun store employees), the use of a ‘Schedule’ (complete firearms inventory) may lead to the following issues:
Application delays by ATF employees that feel you already have too many firearms;
Refusals to open bank accounts, by liberal bankers that don’t believe in the 2nd Amendment; and
Theft, by gun store employees that know you have a large collection of firearms (and know exactly where you live).
Because the Trust Shop guys don’t think the size of your firearms collection is anyone’s business, your Trust Shop NFA Gun Trust uses a much more discreet & confidential method for adding property to your Gun Trust.
The Trust Shop Assignment Form is the safe & private way to add firearms to your Gun Trust! The Assignment Form does the exact same thing as a ‘Schedule’ without the down-side of a complete inventory list. The difference is that the Assignment Form is not a permanent part of the Gun Trust. Instead, it is a separate legal document that proves the property was transferred to the Gun Trust.
There are many benefits to using an Assignment Form:
No comprehensive inventory list
Use as many different Assignment Forms as you want
ATF only requires you to submit a single Assignment Form listing the specifics of the firearm in the Form 1 or 4
No delays from ATF Investigators that think you already have too many guns
Bank employees never see anything about the property in your Gun Trust
Other than the firearm you are purchasing, gun store employees have no idea what you have in your Gun Trust
Your Trust Shop NFA Gun Trust includes FREE Assignment Sheets for LIFE!
Assignment Forms are just one of the many benefits you get with a Trust Shop NFA Gun Trust
The Trust Shop doesn’t place a limit on the number of Co-trustees or Beneficiaries you can have in your Gun Trust. Be careful if you decide to get your trust from somewhere else, as you might be limited to 1 Co-Trustee, or be required to upgrade your trust ($$) before you can make changes.