Recordkeeping and Identification of Trust Property in a Gun (NFA) Trust

Posted on by Joshua Prince, Esq.

Per 20 PA.C.S. 7780, “Recordkeeping and Identification of Trust Property,” a trustee must: 1. keep adequate records of the administration of the trust; 2. keep trust property separate from the trustee’s own property; and 3. ensure that trust property is designated so that the interest of the trust, to the extent feasible, appears in records maintained by a party other than a trustee or beneficiary.

Two issues arise for trustees of a Gun (NFA) Trust. Specifically, 1. when must a trustee record a new asset on the Assignment of Property or Schedule A; and 2. whether a trustee can keep trust firearms in the same gun safe as the trustee’s firearms? These issues are discussed separately below:

1. When must a trustee record a new asset on the Assignment of Property or Schedule A? A trustee must record any and all firearms that are transferred to the trust on the day that they are transferred. Since the firearm is not “transferred” until the BATFE approves the transfer, upon receipt of the approved Form 1 or Form 4, the trustee should immediately add the newly transferred firearm to the Assignment of Property or Schedule A and include the serial number of the weapon. The trustee should copy the approved Form and keep a copy of the Form with the Gun (NFA) Trust and always keeps a separate copy with the firearm at all times. However, this is assuming that the settlor/grantor has given the firearm to the trust. If the settlor/grantor gave money to the trust and the trust used that money to purchase the firearm, then the firearm purchased with the money would not be place on the Assignment of Property/Schedule A. While the trust code does not mandate that the trustee keep a list of these assets, I would highly recommend that a list be kept of all firearms purchased with trust funds. If we have prepared your trust and you bring the original approved form our Bechtelsville office, we will be happy to scan the Form and keep an electronic copy with the trust’s file.

2. Whether a trustee can keep trust firearms in the same gun safe as the trustee’s firearms? This is a difficult question because the Pennsylvania courts have not addressed this issue or any similar issues. Originally, this obligation was to prevent the commingling of funds (cash, stock, mutual funds…etc) because it is virtually impossible to distinguish the trust’s assets from the trustee’s. With firearms, there are several differences: 1. Gun safes are not cheap, some costing upwards of $7000 because of fire protection and weight; 2. Firearms are serialized and the serial numbers are recorded on the approved Forms and on the Assignment of Property or Schedule A; and 3. that public policy would seem to dictate that because of the dangerous nature of firearms, especially NFA firearms, the trustee should be allowed to place the firearms in his safe rather than to have the gun out in the open, where they could possibly be stolen. Hence, a trustee should feel safe in placing trust serialized firearms into his/her gun safe. HOWEVER, if the firearm purchased by or given to the trust does NOT have a serial number, it should be kept in a separate gun safe.

Published by Joshua Prince, Esq.

With our 2nd Amendment rights being attacked at both the Federal and State level, and the ATF (Burea of Alcohol, Tobacco, Firearms, and Explosives) trying to close down FFLs (Federal Firearms Licensees) for minor infractions while making FFLs the scapegoat when the ATF's records are inaccurate, I want to take this opportunity to introduce myself. I am one of only a handful of attorneys across the US that practices in the niche area of law known as firearms law. I decided to concentrate my legal practice on firearms law not only because I am a shooter and firearms enthusiast, but also to ensure that our inalienable Right to Keep and Bear Arms is never encroached upon. I handle cases at the Federal and State level for both FFLs and individuals. At the federal and state levels for individuals, I actively defend the 2nd Amendment of the US Constitution and Section 21 of the PA Constitution, as well as, help individuals with: - License to Carry Firearms Denials; - Challenges to Erroneous PICS Denials; - Relief from Firearms Disabilities; - Estate Planning Advice; - Gun/NFA Trusts; and - 42 USC 1983 Actions for Deprivation of Civil Rights At both the state and federal levels, I represent FFLs and SOTs throughout Pennsylvania and the US regarding: - ATF Compliance Inspections; - Warning Letters and Hearings; - FFL Revocations; - Corporate Structure Advice - Indoor/Outdoor Range Implementation; and - Forfeiture Proceedings In following my love for firearms and firearms law, I have taught several Continuing Legal Education (CLE) seminars on Firearms in Estates and Trusts and Firearms Law 101 for several Bar Associations, including Berks, Cumberland, and Dauphin Counties. I also planned and taught several Firearms in Estates CLE classes for the Pennsylvania Bar Institute (PBI). While at Widener Law School, I was a member of the Widener Law Journal. I wrote an article on the Inaccuracy of the National Firearms Registration and Transfer Record (NFRTR). I also had an article published on Fee Disputes in Workers Compensation cases in the Widener Law Journal, Volume 18, No. 2. You can often find me posting on several internet forums, including Subguns, Uzitalk, AR15, and PAFOA. I also hold PA Firearms Law classes for local ranges to inform the public on the firearm laws of the Commonwealth. Following in my father's footsteps, I am also a Board member for the Pottstown Police Athletic League (PAL).

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