I Should Get an NFA Trust, Right?

Rules under the NFA allow NFA items to be owned by, and tax stamps issued to trusts rather than individual people. 27 C.F.R. § 479.11. This mitigates the second of the two significant limitations placed on NFA items because the NFA items owned by the trust may be passed around freely among the parties named in the trust. For example, assume a man owns a short-barreled rifle that his wife wants to shoot on a trip without her husband. If the husband and wife are not on an NFA trust that owns the short-barreled rifle, the husband would have to go with the wife to shoot the weapon because he is the owner of the weapon. However, if they are both on an NFA trust that owns the short-barreled rifle, either party may possess the weapon at any time because the trust, rather than they, is the owner of the weapon.

“Great!” you’re thinking. “I should get one of those for every single one of my NFA items, you are thinking.” And with how readily available NFA trusts are from websites such as NationalGunTrusts.com, who could blame you?

Well, as it turns out, NFA trusts are not without their drawbacks. For one, NFA trusts take longer for the ATF to process than do simple Form 1 NFA tax stamps. This, in itself, should not be a dealbreaker. After all, NFA trusts offer the flexibility to transfer possession between trustees as indicated above. There are two questions that you should consider before going to the extra effort and expense of an NFA trust. First, do you intend to share your NFA items with others? Second, do you already have an existing NFA trust?

The first question should be obvious, yet many fail to consider it. Put simply, NFA trusts offer little to no value if you do not intend to share possession of your NFA items with other trustees. An NFA trust to which only you belong is worthless, expensive, and takes longer to process. If, for example, you want your spouse to be able to use your NFA items without your presence, or if you want to seamlessly leave your NFA items to someone in a will, then an NFA trust is the ideal mechanism to meet your goals. If those circumstances do not apply to you, and you simply want an NFA trust because the internet told you to get one, then not only are you spending more money than you need to, but you are increasing lead times for yourself and everyone else who is trying to get their tax stamps processed.

The second question can often surprise buyers. How could one have an NFA trust without knowing it? The answer is that many online NFA item servicers offer bundled NFA trusts together with the sale of an NFA item such as a sound suppressor. Buyers operating under the internet’s best advice often purchase the trust without much thought, and every time they do, they create a new trust. Many buyers find themselves owning three different silencers, each of which is owned by a different trust. Like the above situation where an owner is the only trustee of his NFA trust, this is expensive, unnecessary, and counterproductive.

When the cost of NFA tax stamps drops to $0 on January 1, 2026, the number of NFA items in the market will likely spike. The demand for NFA trusts will likely follow. Everyone and his dog will want an NFA trust. You might want one too. But before you go setting one up, consider your goals, and ask whether it is the right solution for your needs. Do you intend to share your NFA items? Do you intend to bequeath your NFA items in your will? If so, a trust is a sound plan. Do you already have an NFA trust? If so, terrific! Simply ensure that your new acquisitions are added to your existing trust rather than creating a new one. This will save you money, time, and headache and ensure that you are spending your time and money on the range, where they belong.