Estate Planning and Transfer of NFA Firearms – Examining the Alternatives

Joshua G. Prince, (J.D. Candidate, Widener University School of Law) has recently posted on the PA Elder, Estate & Fiduciary Law Blog his article entitled Estate Planning 101 under the National Firearms Act, paelderestatefiduciary.blogspot.com (2007).

Here are some excerpts from his article:

As an estate attorney, how do you handle the planning of an estate, which includes National Firearms Act [NFA] firearms? What if your client asks you, prior to his/her purchase of a NFA weapon, what is the best form of ownership, with long term estate planning in mind?

This issue may plague estate attorneys, leaving them to scratch their head in bewilderment as to the correct course of action. More importantly, a probate attorney may be flirting with malpractice, since the registration of NFA weapons is mandatory and ignorance is not a defense.

To begin, one must understand what a “transfer” of a NFA firearm entails, and which registration entity best suits his/her client. The Bureau of Alcohol, Tobacco, Firearms and Explosives currently allows the registration of NFA firearms, by an “individual,” which is defined as “A partnership, company, association, trust, estate, or corporation, as well as a natural person.” The correct entity will depend on the clients current and future desires.***

For the purposes of this article, I will deal with the requirements, benefits, and detriments of registering a weapon as an individual person, corporation, or trust.***

Special thanks to Neil E. Hendershot, Esq. (Attorney at law, Goldberg Katzman, P.C., Adjunct Professor, Widener University School of Law) for bringing this article to my attention.