This is what I found online, I think it explains things very well:“Gun Trust Benefits For NFA Firearm Ownership”
“The Safe and Secure Way To Own Class 3 Firearms”
A Gun Trust Can Overcome Many Problems to Obtaining NFA Weapons.
Several years ago one of my clients was trying to obtain a CLEO sign off to purchase a machine gun in San Antonio, Texas.
“This decorated Vietnam veteran wanted to purchase a 9mm sub machine gun with integral suppressor. He contacted the Bexar County Sheriff to see if he would sign off on the required Form 4 transfer form. The response was a resounding no. The Sheriff no longer signs off on such documents. The veteran was referred to Marty Seidler by his stockbroker to prepare an NFA gun trust. Marty drafted the trust and the veteran was able to acquire the sub machine gun in the name of the trust without the need for the Sheriff’s approval. His trust is now the proud owner of a suppressed 9mm sub machine gun, whose use, he and his trust beneficiaries, can also enjoy.”
If you enjoy shooting machine guns, using silencers or other class 3 firearms or you are looking to own one, do not be discouraged by red tape or government resistance to deny you of your legal rights. I create a legal entity called a Gun Trust that overcome the hassles, limitations, and out right denial of individual class 3 ownership.
I recommend a Gun Trust rather than individual ownership for NFA firearms for the following reasons:
CLEO Sign Off Not Required – The ATF requirement that individuals obtain the signature of the Chief Law Enforcement Officer (Cleo) of the city in which you live, on Form 4, Machine gun/suppressor transfer documents, does not apply to gun trusts. No CLEO signature is required on AT Form 4 transfers to a gun trust. Many Police Chiefs and Sheriffs (Cleos) now refuse to sign. ATF Form 4 transfer forms making acquisition of Class 3 items difficult. The use of a gun trust to acquire class 3 items solves this problem.
No Fingerprint Cards Required – The ATF requirement that an individual supply two sets of fingerprint cards with every Form 4 transfer does not apply to transfers to a gun trust.
No Photographs Required – The ATF requirement that an individual supply two photographs with every Form 4 transfer does not apply to transfers to a gun trust.
Continuity of Ownership – Since a gun trust can last several generations the property in the trust (ie class 3 machine guns, suppressors, short barreled rifles, flamethrowers, etc.) remains in a single entity (gun trust) without the necessity to transfer each item upon the death of a single trustee or beneficiary, where several are named.
Continuity, Breadth and Mutuality of Possession – A properly drafted gun trust can allow various persons to possess and use NFA Class 3 weapons owned by the trust. Several trustees with authority to possess the trust’s NFA Class 3 weapons can be designated. ATF regulations for individuals limit the possession of NFA Class 3 weapons to the registered owner only. Gun trusts can be drafted to allow various persons to use the trust’s NFA weapons over the years without the need to transfer them upon the death or incapacity of a trustee or beneficiary of the trust. Family members or friends can be designated as authorized “users” of trust Class 3 weapons. Nevertheless, when the trust terminates, its property must be distributed to the beneficiaries and a transfer tax paid on each NFA item.
Confidentiality – When a gun trust purchases a Class 3 weapon, it must submit a copy of the trust to the ATF with the Form 4. The NFA gun trust is otherwise confidential. It is not filed of record and, other than NFA weapons purchased by the trust which must be registered with the ATF, its assets are confidential and need not be disclosed.
This information was obtained at website:
www.guntrustlawyer.net/
