THE IMPACT OF ATF RULE 41F AND GUN TRUSTS

THE IMPACT OF ATF RULE 41F AND GUN TRUSTS

 

WHO IS AFFECTED?

ATF Rule 41 F applies to both individuals and legal entities like trusts and corporations who attempt to obtain NFA firearms like Silencers, Machine Guns, Short Barrel Rifles, etc.

 

WHAT IS GOING TO CHANGE?

The forms and supporting documentation that must submitted to ATF for an application to make or transfer an NFA firearm is going to change. Here is the breakdown on what is currently required and what will be required for new applications after the new rule takes effect.

41F - Trusts
The new rule creates a new category of person called a Responsible Person, and every Responsible Person for a trust will have to submit fingerprints, and photographs, and notify the CLEO of the trust’s acquisition of the firearm.Under the old rule a trust did not have to submit fingerprints, photos or have to get CLEO signature for any Application to make or transfer an NFA firearm.

The definition of what a Responsible Person means, it still being debated, but it seems certain that it will include the grantor or settlor (trustmaker) and all the trustees and co-trustees. The ATF specifically excludes beneficiaries from the definition of a Responsible Person. You will not have to get your minor children photographed and fingerprinted to buy another suppressor. Whether a Successor Trustee will be considered a responsible person is still unknown. I would argue that a Successor Trustee is not Responsible Person in a Gundocx trust because the Successor Trustee does not have a present right to possess trust property. A Successor Trustee does not have a right to possess trust property unless the grantor/settlor becomes incapacitated or dies.

41F - Individuals

The big change for individuals is that the CLEO certification requirement is being removed. It is being replaced by a CLEO notification requirement. A police chief or sheriff can no longer prevent an individual from obtaining an NFA firearm by refusing to sign the individual’s paperwork. All the individual has to do is notify their Chief Law Enforcement Officer that they are submitting an application. It requires no response from the Chief Law Enforcement Officer.

 

WHEN WILL THIS CHANGE TAKE EFFECT?

The new rule will take effect on July 13, 2016.

ATF has said that it will process all Applications postmarked before the effective date of the New Rule under the requirements of the Current Rule

What this means is that there is still time to obtain NFA firearms without being fingerprinted or photographed, or having to notify your Chief Law Enforcement Officer. A gun trust remains the best way to do this.

Contact me to form a trust and get the process underway before this window of opportunity closes!

You can read the Final Rule here:  Federal Register

 

WHERE WILL THIS RULE APPLY

It will apply to everyone attempting to obtain an NFA Firearm in the United States.

 

WHY WAS THE RULE CHANGED

It’s difficult to pin down a single reason for the rule change. ATF was certainly aware of the explosive growth of the use of gun trusts to obtain NFA firearms and that they were not obtaining the same level of personal details to run background checks on the people behind those trusts.

The official impetus for the rule change process was a petition filed with the ATF by the National Firearms Act Trade and Collectors Association. They were concerned that trusts or other legal entities would be used to obtain NFA firearms by people who were prohibited from possessing firearms.

The NFATCA is here: http://www.nfatca.org/

The full text of the Final Rule is here ( Starts on Pg 238 ): FINAL RULE 41F