How do I protect my suppressors, short barreled rifles and other restricted firearms?

These days, many people own sporting weapons and suppressors also known as silencers. NFA-regulated firearms include automatic weapons, short barreled rifles, short barreled shotguns, suppressors and destructive devices.

A Colorado 2A Trust makes it easier to manage and use NFA firearms. Because it is illegal for anyone other than the registered owner of an NFA firearm to possess, or even have the ability to possess NFA firearms (i.e., constructive possession = an Accidental Felony), your Colorado 2A Trust allows for designated trustees who will have the ability to possess and use these items through the Colorado 2A Trust. If you rely on NFA firearms for home defense and a family member has access to the NFA firearm for that purpose, a Colorado 2A Trust may be right for you.

Your Colorado 2A Trust is a special purpose trust dealing with regulated firearms and can also hold ownership of non-NFA firearms. Most standard estate planning trusts are not designed to hold title to NFA firearms let alone deal with the intricacies of transfers of such weapons. Your Colorado 2A Trust will also allow for non-NFA firearms to be owned by the trust. This can be very useful if the plan is to convert a pistol, long shotgun and/or long long rifle into to a short-barreled rifle (SBR) which is then an NFA firearm.

What are the National Firearms Act and the Gun Control Act?

The National Firearms Act (NFA) and the Gun Control Act (GCA) were enacted to restrict who may possess, buy, and sell certain restricted firearms and firearm accessories. The NFA operates primarily as a taxing statute by imposing a $200 statutory excise tax per item and also requires the owner to register all restricted firearms with the Bureau of Alcohol, Tobacco, Firearms and Explosives. The GCA, on the other hand, was enacted to restrict the transfer of certain types of firearms between individuals. The GCA places firearms into two categories, and each has different rules. Title I firearms primarily include long rifles, shotguns, and handguns. Title II firearms include machineguns, short-barreled rifles, short-barreled shotguns, suppressors (silencers), and destructive devices such as grenades, bombs, explosive missiles, and poison gas weapons. Together, the NFA and the GCA impose various restrictions on the rights of firearm owners to possess and transfer certain firearms.

Are there any exemptions from the making or transfer tax provisions of the NFA?

Yes. These exemptions are noted below, along with the required form number, if any, to apply for the exemption. Completed forms must be approved by the National Firearms Act (NFA) Branch prior to the making or transfer:

(1) ATF Form 3: Application for Tax-Exempt Transfer of Firearm and Registration to Special Occupational Taxpayer (National Firearms Act). This form is used by a licensed Federal Firearms Licensee (FFL) with a Special Occupational Tax (SOT) status to transfer a National Firearms Act (NFA) firearm to another FFL/SOT without payment of the transfer tax.

(2) ATF Form 5: Application for Tax Exempt Transfer and Registration of Firearm. This form is used to apply for a tax-exempt transfer by operation of law (e.g., court order). A trustee of a trust may submit this form to transfer a firearm to a lawful heir as a tax exempt transfer.

If I currently own Title II firearms, may I transfer theminto the FirearmTrust without paying the transfer tax?

No, this type of transaction will require a $200 tax stamp for each firearm transferred – at least until December 31, 2025.

How can a person legally obtain NFA firearms?

A person may make an NFA firearm by filing and receiving an approved ATF Form 1 Application to Make and Register a Firearm. A person may transfer a Title II firearm to another person by filing and receiving an approved ATF Form 4, Application for Tax Paid Transfer and Registration of Firearm. Applications to make or transfer a firearm will not be approved if Federal, State, or local law prohibits the making or possession of the firearm.

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