NFA Trust vs. Individual Registration: Which Is Right for You?

If you’re looking to purchase items regulated by the National Firearms Act (NFA), such as suppressors, short-barreled rifles, or machine guns, you have two main options for ownership:

NFA trust or individual registration. Understanding the differences and advantages of each can help you make the best choice based on your needs.  An NFA trust is a legal entity that can hold ownership of NFA items. This option comes with several unique advantages:

Advantages:

1) Multiple Trustees

An NFA trust allows you to name multiple people as trustees. This means that everyone named can legally possess and use the NFA items without breaking the law, as long as they are listed on the trust.

2) Estate Planning
One of the biggest advantages is that an NFA trust can help you pass on your firearms to heirs without the hassle of transferring ownership. When you pass away, the items remain in the trust and can be managed by the next trustee.

3) Flexibility
You can add or remove trustees as needed, providing flexibility in who can legally handle your NFA items over time.

Individual Registration

Registering as an individual is more straightforward but does come with some limitations compared to a trust.

Advantages:

1) Simpler Process
Registering as an individual is typically quicker and easier than setting up a trust. You submit your application, fingerprints, and photos, then wait for approval.

2) Less Paperwork
With an individual registration, you avoid the need for drafting and managing a legal document like a trust. This may be appealing for those who want a more streamlined process.

3) Lower Cost
Since there’s no need to set up a legal entity, registering as an individual can be a less expensive option upfront, as it saves the cost of establishing a trust.

Which Option Should You Choose?

-If you plan to share access to NFA items with family or friends, or want a structure that will help with estate planning, an NFA trust is likely the better option.

-If you’re the only person who will own and use the items and prefer a faster, simpler process, then individual registration may suit you best.

Both options have their pros and cons, so it’s essential to consider your personal situation and goals before making a decision. If you’re still unsure, don’t hesitate to contact Middletown Firearms at [email protected] for advice on how to move forward with your NFA purchase.