Source: http://www.lapinlawtx.com/nfa-trusts.html
Timestamp: 2019-04-25 03:57:17+00:00

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Texas NFA Gun Trust | Firearms Law Attorney - Lapin Law Offices, P.C.
Lapin Law Offices is the place where you can find the National Firearms Act (NFA) Gun Trust services.
Why Use a National Firearms Act Trust ("NFA Trust")?
Why Purchase a Lapin Law Office NFA Trust?
Are the Lapin Law Offices NFA Trusts Expensive?
Persons seeking to lawfully acquire Assets regulated by the NFA (“NFA Assets”) must submit an application (ATF Form 4) to the Bureau of Alcohol, Tobacco, Firearms, and Explosives (“BATFE” or “ATF”) and pay a transfer tax ($200.00 for most Assets).
Individual applicants must also submit their fingerprints and photograph, and must also obtain on the Form 4 the signature of the Chief Law Enforcement Officer (CLEO) in the jurisdiction of the applicant’s residence.
All transfers of NFA Assets require the submission of an ATF Form 4 and payment of the tax. Thus, individuals who lawfully obtain and possess NFA Assets may not lawfully lend or allow any other person to possess or use those NFA Assets, unless a new ATF Form 4 is submitted, the $200.00 tax is paid, and the approved ATF Form 4 is returned and received after what usually is an extended period of time for application processing. Assuming an owner of an NFA Asset were to go through this cumbersome process, the process would have to then be repeated before the borrower could lawfully return the NFA Asset to its original owner (lender).
Another problem with individual ownership of NFA Assets is what is known in legalese as “constructive possession.” A person is deemed by law to be in constructive possession of an item of personal property if that person merely has access to that property, even if the person never physically touches or otherwise comes into actual possession of the property.
It is illegal for any person to receive, possess, or transfer an NFA Asset that is not registered to that person. 26 U.S.C. § 5861. The issue of constructive possession can arise in the context of NFA Assets if, for example, a husband, in his legal capacity as an individual, submits an ATF Form 4, pays the tax, lawfully takes possession of an NFA Asset, and then stores that NFA Asset in the home which he and his wife share. The wife will be deemed to have constructive possession of the NFA Asset if she, for example, has the combination or a key to the safe in which the NFA Asset is stored. The wife, in this scenario, would then be subject to federal criminal prosecution for unlawful possession of an NFA Asset, while the husband would be subject to criminal prosecution for making an unlawful transfer of an NFA Asset. The government has used this legal theory to criminally prosecute spouses where one spouse may lawfully possess firearms, but where the other spouse may not.
There is a better way. As noted above, since the procedure that must be used for a “person” to lawfully acquire an NFA Asset is to file an application (ATF Form 4) with the BATFE and pay a transfer “tax,” the appropriate location to look for the definition of “person” is the Internal Revenue Code (“IRC”).
The IRC defines “person” as an individual, trust, estate, partnership, association, company, or corporation. 26 U.S.C. § 7701(a)(1); see also, 27 CFR § 479.11.
The BATFE, or simply ATF as it has been known for most of its existence, came into being during the year 1886, as an agency within the Department of the Treasury. The ATF was briefly transferred to the Department of Justice in 1930, but, after the repeal of Prohibition in December 1933, was transferred back to the Department of the Treasury, where it became the Alcohol Tax Unit (“ATU”), a unit within the Bureau of Internal Revenue.
In the early 1950s, the Bureau of Internal Revenue, which remained under the Department of the Treasury, became the Internal Revenue Service (“IRS”). The ATU remained a unit under the newly-established IRS and was given the additional responsibility of enforcing federal tobacco tax laws.
In 1972 ATF was established as a separate bureau – apart from the IRS – but still within the Department of the Treasury.
As a result of legislation which was enacted after the terrorist attacks of September 11, 2001, the ATF was transferred from the Department of the Treasury to the newly-created Department of Homeland Security.
Thus, over the course of most of its history, the BATFE (or simply, ATF) has been a unit or bureau within the Department of the Treasury, with most of that existence being under or within the federal government agency that has responsibility for the collection federal taxes. Thus, reliance on the IRC for the definition of “person,” as that term is used in the NFA, is well-founded. Additionally, the ATF’s long history and practice of recognizing and approving trusts as owners of NFA Assets provides further proof that the National Firearms Act definition of “person” does, in fact, include trusts.
What National Firearms Act Assets May One Purchase Through a Trust?
The NFA defines the term “firearm” differently than other federal and state laws which regulate “firearms,” and is at the same time both narrower and broader than the common definition of that term.
a. Bombs, rockets, missiles, mines, etc.
11. Any other weapon (“AOW”), as defined. Examples include smooth-bore pistols, pen guns, cane guns, other disguised firearms, guns that can be fired from a waller holster or briefcase, and handguns with a vertical foregrip. 26 U.S.C. §5845 (NFA) and 18 U.S.C. § 921(a) (Gun Control Act).
Why Purchase a Lapin Law Offices NFA Trust?
The National Firearms Act (“NFA”) makes it a criminal offense for any person to receive, possess, or transfer a firearm that is not registered to that person. 26 U.S.C. § 5861.
VIOLATION OF THE NATIONAL FIREARMS ACT IS A FELONY OFFENSE, PUNISHABLE BY UP TO 10 YEARS IN FEDERAL PRISON AND A $10,000 FINE. 26 U.S.C. § 5871. VIOLATION OF THE ACT ALSO MAKES NFA ASSETS SUBJECT TO FORFEITURE. 26 U.S.C. § 5872(a). ADDITIONAL PENALTIES MAY BE IMPOSED UNDER STATE LAW.
WILLFUL EVASION OF THE TRANSFER TAX MAY RESULT IN A FINE OF UP TO $100,000 (INDIVIDUALS) OR $500,000 (BUSINESS ENTITIES AND TRUSTS).
ADDITIONALLY, PERSONS CONVICTED OF A FELONY OFFENSE MAY NEVER AGAIN LAWFULLY OWN OR POSSESS FIREARMS, AMMUNITION, OR FIREARM COMPONENT PARTS. 18 U.S.C. § 922(g)(1).
Unlike many other attorneys who are primarily criminal defense attorneys that just happen to sell NFA trusts, or large corporations that are not themselves law firms, but who contract with law firms that mass-produce “boilerplate” trusts, all Lapin Law Offices NFA Trusts are specifically prepared for individual clients by a Firearms Attorney whose practice includes federal and state firearms law, trusts and estates law, criminal defense litigation, and civil litigation.
If a trust that holds NFA Assets is ever deemed or determined to be invalid, the person(s) in actual or constructive possession of those NFA Assets could be criminally prosecuted for unlawfully receiving, possessing, or transferring those NFA Assets.
With so much at stake, with the consequences of a failed NFA trust being so great, why settle for anything less than a Lapin Law Offices NFA Trust?
Lapin Law Offices NFA Trusts can be used for holding title to your non-NFA firearm assets, not just your NFA Assets.
Persons who own or seek to acquire NFA Assets, in all likelihood, own other firearms as well. Further, they are more likely, as compared with the general population, to be licensed to carry concealed handguns. What this means is that persons who own or seek to acquire NFA Assets are, statistically, more likely than members of the general population to be involved in an Armed Defense incident.
It is not uncommon, following an Armed Defense incident, for the defender to be arrested and criminally prosecuted. If, before trial, the defender is granted bail, a usual condition of bail is that the defender not possess any firearms. If the defender is ultimately convicted, the conviction will probably carry with it a loss of all firearms rights.
A Lapin Law Offices NFA Trust provides the protection and flexibility needed to manage and control the possession of firearm assets in the event that the person(s) who formed the trust ever become ineligible – temporarily or permanently – to possess firearms. The structure of a Lapin Law Offices NFA Trust seeks to avoid the situation which arose in Henderson v. United States (U.S. Supreme Court No. 13-1487, decided May 18, 2015).
In Henderson v. U.S., the defendant was arrested by FBI agents for a crime unrelated to the defendant’s possession of firearms. As a condition of bail, Henderson was ordered to surrender possession of all firearms that he owned. After he was convicted, Henderson sought to have the firearms transferred to a third party. Both the trial court and the intermediate appellate court refused to grant Henderson’s request.
The United States Supreme Court ultimately ruled in Henderson’s favor, holding that Henderson should not be deprived of the ability to transfer his firearms to a third party, as long as the transfer would not enable Henderson, now a convicted felon, to reacquire actual or constructive possession of the transferred firearms.
The very structure of a Lapin Law Offices NFA Trust, which provides the ability for persons other than the creator of the trust to lawfully possess Trust Assets (both NFA Assets and non-NFA assets), facilitates a favorable resolution to the firearms possession issue which arose in Henderson v. U.S. Although the principle set forth in Henderson is now the law throughout the United States, having a Lapin Law Offices NFA Trust hold title to all of your firearm assets further tips the scales of justice in your favor, should you ever find yourself in a similar, unfortunate situation.
Are Lapin Law Offices NFA Trusts Expensive?
No. All Lapin Law Offices NFA Trusts are very reasonably priced. We live in an age where people often use legal forms that they can download for free from the Internet, or which they can purchase for a nominal fee from an Internet company that simply prepares template forms based on answers to biographical questions which are provided by the customer. No real legal advice is – or even can be – given in such situations.
Not much better are the NFA trusts that are sold for a very modest fee by most other attorneys. Often, their fee for an NFA trust is about $250.00. Clients who purchase these inexpensive NFA trusts, at these “bargain” prices, think they are getting a good – perhaps very good – deal. But as with almost everything else in life, if something seems too good to be true, it usually is.
A report by the State Bar of Texas states that, as of 2011, the median hourly fee rate for Texas attorneys who practice full-time was $238.00. See, http://www.texasbar.com/AM/Template.cfm?Section=Demographic_and_Economic_Trends&Template=/CM/ContentDisplay.cfm&ContentID=20499.
6. Answer any questions the client may have about the NFA trust?
REMEMBER, IF AN NFA TRUST THAT HAS RECEIVED ONE OR MORE NFA ASSETS IS EVER FOUND TO BE INVALID, THOSE PERSONS WHO ARE IN POSSESSION OF THE TRUST’S NFA ASSETS – WHETHER THAT POSSESSION IS ACTUAL OR CONSTRUCTIVE – COULD BE SUBJECT TO CRIMINAL PROSECUTION AND, IF CONVICTED, SENTENCED TO A TERM OF UP TO TEN YEARS’ IMPRISONMENT IN A FEDERAL PRISON AND A FINE OF UP TO $10,000. CONVICTION, OF COURSE, WOULD ALSO RESULT IN THE PERMANENT LOSS OF THE RIGHT TO LEGALLY OWN OR POSSESS ANY FIREARM.
Given the legal risks that are implicit in the possession and use of NFA Assets, and the complexities of federal and state firearms laws, please consider carefully what the value to you is of having a valid NFA trust, prepared by a law firm that is not merely trying to sell the most NFA trusts, at low prices, to the greatest number of people.
Our Lapin Law Offices NFA Trusts are specifically and individually prepared for each NFA trust client. Although the starting point for each Lapin Law Offices NFA Trust is one of our standard Lapin Law Offices NFA Trust templates, our templates are not just off-the-shelf standard trust forms; each is a trust template that we have highly modified and edited for the very specialized and specific purpose of lawfully accommodating NFA Assets.
Although our Lapin Law Offices NFA Trusts are not the least expensive NFA trusts that can be found – we can’t, and won’t, try to compete with NFA trust mills – our Lapin Law Offices NFA Trusts are still significantly less expensive than other quality NFA trusts, while still retaining the high level quality and sophistication that can only be provided by experienced legal counsel.
Each of our Lapin Law Offices NFA Trusts would be a bargain at much higher prices. However, we keep Lapin Law Offices NFA Trusts reasonably priced – much lower priced than others of comparable quality – so that you can spend more of your hard-earned money acquiring additional NFA and other firearm assets.
a. Provide us with the information we request to form your Lapin Law Offices NFA Trust and we will prepare the Trust for you. Review and approve the final Trust document and have your signature notarized on it.
a. We recommend an amount of slightly more than $200.00, so you can use Trust assets to pay the transfer tax whe you submit your ATF Form 4.
a. Your NFA dealer must possess the NFA Asset that you seek to acquire, prior to the submission of your ATF Form 4, as the serial number of the NFA Asset must be listed on the ATF Form 4.
a. List the name of your Lapin Law Offices NFA Trust as the transferee.
Every Lapin Law Offices NFA Trust comes with its own “Owners Manual.” We want you to have the information you need, not only to comply with the law, but also to remain in compliance with the law. The Owners Manual provides you with the guidance you need on the most common NFA legal issues that you are likely to encounter.
Also, every Lapin Law Offices NFA Trust, in addition to providing you with the legal framework needed for acquiring your first NFA Asset, allows you the ability to add newly-acquired NFA Assets that you may purchase in the future. We will never charge you additional legal fees, or require you to visit to our law office, simply to add an additional NFA Asset to your existing Lapin Law Offices NFA Trust.
Finally, every Lapin Law Offices NFA Trust provides you with the legal infrastructure for allowing others to lawfully possess and use the Trust’s NFA Asset(s). Use this legal infrastructure to share with your family and friends the enjoyment that can be derived from use of the Trust’s NFA Assets. We will never charge you additional legal fees, or require you to visit our law office, simply to add (or remove) a person(s) who is (are) authorized to use or possess your NFA Assets.
The Standard Lapin Law Offices NFA Trust contains every feature and provision that is needed to lawfully own and use NFA Assets.
The Standard Lapin Law Offices NFA Trust will be sufficient in most situations and for the majority of clients.
Please refer to the below chart for a side-to-side comparison of the various Lapin Law Offices NFA Trusts.
The Legacy Lapin Law Offices NFA Trust contains all of the features and capabilities of the Standard Lapin Law Offices NFA Trust and, in addition, as an estate planning tool, allows for the specific gifting of NFA Assets following the death of the person who created the Trust.
The Custom Lapin Law Offices NFA Trust possesses all of the capabilities of the Legacy Lapin Law Offices NFA Trust and, in addition, allows for multi-state NFA Asset ownership, multi-generational planning, and contains investment powers, powers of appointment, and a provision for a trust protector.
Lapin Law Offices offers affordable, experienced, and aggressive Firearms & 2nd Amendment, Concealed Handgun (CHL), and Federal Firearms Licensee (FFL) legal services for clients in Addison, Carrollton, Dallas, Frisco, Garland, McKinney, Plano, Richardson, and other cities throughout Collin, Dallas, Denton, Hunt, Kaufman, Rockwall, and Tarrant Counties. Lapin Law Offices also provides National Firearms Act (NFA) Gun Trust services.

References: § 5861
 § 7701
 § 479
 §5845
 § 921
 § 5861
 § 5871
 § 5872
 § 922
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