NFA Firearms After You Die – The Legal Brief ~ VIDEO

The Gun Collective
The Gun Collective

USA – -(Ammoland.com)-Welcome back to The Legal Brief, the show where we CRUSH the various legal myths and misinformation surrounding various areas of the gun world. I'm your host Adam Kraut and today we're talking about what happens to those NFA firearms after you die.

If you haven’t heard the news, I’m back on the ballot for the NRA Board of Directors in 2018. Thanks to you guys, we’re going for it again. I'll have some more exciting announcements in the coming weeks that you’ll want to hear about, so be sure to get subscribed to my email list so you don't miss a beat. The link is in the description.

As the popularity of National Firearms Act or NFA firearms has increased, the question of “what do I do with this stuff when I die?” is being asked more and more. You may have heard some of the good old wives tales that used to be whispered around gun shows like “you have to turn them over to the government” or “they can’t be passed on to anyone else”, etc.

In all reality, the disposition of the NFA firearms you own when you die is not very complicated. As you likely know, the two most common ways people choose to purchase NFA firearms are either as an individual or through a trust. The process is similar for both to a large degree.

When an individual dies, they either die with a will or intestate (without a will). If the person has a will and it directs where the firearms go, it makes life a little easier. If they don’t, it likely requires a lawyer to figure out how the state’s law requires property to be divided. Most people believe that if a couple are married without either having a will, everything goes to the spouse. That is actually not true, so you should probably look into getting a will.

In either event, the estate will have an executor or an administrator. ATF clarified in everybody’s favorite regulatory change, ATF 41F, that the executor or administrator is legally able to take possession of the NFA firearms while the estate is being probated. In the case of a properly drafted trust, there will be trustees who are still alive. They are also able to take possession of the firearms in order to administer the trust according to its provisions.

So what happens next? Well, there are two ways the NFA Firearm can transfer. One is tax free on a Form 5 and the other is a tax paid transfer on a Form 4. If an individual specifically names a person in their will or by operation of law (if they died intestate) the firearm transfers tax free on a Form 5. The same is true for a trust and a named beneficiary.

However, if the firearm is being transferred to a third party, someone not named as the recipient in a will, entitled to it by operation of law, or as a beneficiary of a trust, the firearm must transfer on a Form 4, which means someone is paying the $200 tax. It is ok for an estate or for trustees to sell the NFA Firearms if the legally entitled recipient does not want them. They, however, are entitled to the cash value of whatever they were sold for. Let’s be honest, some people in our lives may want cash rather than some silencers or machine guns, although I can’t imagine why.

NFA Firearms After You Die
NFA Firearms After You Die

I won’t cover filling out the Form 5 in this episode, but if you guys want to see that covered, let me know in the comments. As you probably have learned, your NFA firearms don’t just disappear into an abyss. They either go to your heirs, named recipients tax free or can be sold or given to a third party tax paid. It is important that you do take the time to make sure your affairs are in order. If you are an individual, strongly consider having a will drafted and not on the back of a napkin in a bar. They are not very expensive and ensure your things go where you want them to after you kick the bucket. If you’re using a trust, make sure it is drafted properly to ensure that someone is actually able to administer it, without requiring a court to appoint a trustee. Take a few moments to explain to your spouse, significant other or family how this stuff works, so if they find themselves in a position where it has to be dealt with, they are able to start down the right road or give the information to the lawyer to do it.

Sick of fake news? Make sure to share this video with your friends. Don't forget to hit that like button and if you aren't subscribed already, you better make that happen. Hang out on Facebook? Be sure to join us on the TGC Nation Group. Remember to check out my website adamkraut.com.

And as always thanks for watching!

Links for this episode:

  • Email List: http://www.adamkraut.com/join-the-email-list/?rq=email%20list
  • 27 C.F.R. 479.90a – Estates – https://www.law.cornell.edu/cfr/text/27/479.90a
  • ATF Form 4 – https://www.atf.gov/firearms/docs/form/form-4-application-tax-paid-transfer-and-registration-firearm-atf-form-53204/download
  • ATF Form 5 – https://www.atf.gov/firearms/docs/form/form-5-application-tax-exempt-transfer-and-registration-firearm-atf-form-53205/download

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TedBJIRattlerjakeGordon Matthews Recent comment authors
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Ted
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Ted

Why would I want the government to even know where my guns go? They could be dispersed without them knowing which is true “shall not be infringed”.

BJI
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BJI

Mr. Matthews the NRA has no power to remove ANY gun law. NRA can ONLY lobby to remove them and being successful in that is as likely as you flying by flapping your ams while running as fast as you can!!!

Gordon Matthews
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Gordon Matthews

Mr. Kraut,
You get my vote but as I have stated in previous comment ,all of these stupid gun laws are unconstitutional.If oyu get the nod please direct the NRA to stick by the constitution and remove all of these stupid gun laws!!
MERRY CHRISTMAS and happy new year to you all!!
Gramps 38

Rattlerjake
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Rattlerjake

He’s definitely got my vote. It would be nice for once to have a true CONSTITUTIONALIST, and KNOWS the law, in the NRA hierarchy!