Creating a Michigan NFA Gun Trust for Suppressors, SBRs, and Automatic Weapons: Costs & Rules

In Michigan, possessing items regulated by the National Firearms Act (NFA), such as silencers (suppressors), short-barreled rifles (SBRs), and fully automatic weapons (machine guns made before 1986), requires strict adherence to federal and state law. A single misstep can result in a federal felony. Using an NFA Gun Trust is the safest and most flexible way to own these Title II firearms. You can browse our directory to find a Michigan lawyer specialized in firearms law to draft a compliant trust.

Individual Ownership vs. Gun Trusts

Under 26 U.S.C. § 5861, it is a felony to possess an unregistered NFA firearm. If you buy a suppressor as an individual, only you can possess it. If your spouse or child has the combination to your gun safe where the suppressor is stored, they could be charged with 'constructive possession' of an unregistered NFA item. An NFA Gun Trust solves this by allowing you to add family members as 'co-trustees.' Anyone named as a co-trustee can legally possess and use the NFA items owned by the trust.

Step-by-Step Process in Michigan

Whether you live in Detroit, Grand Rapids, or Lansing, dealing with the ATF requires patience and precision.

Step 1: Drafting the Trust

You must have a Michigan-specific NFA Trust drafted by an attorney. This document outlines who the Settlor (you) is, who the Co-Trustees are, and who the Beneficiaries (heirs) are. It must comply with Michigan trust codes and federal ATF regulations.

Step 2: Adding or Removing Co-Trustees

When you apply for a new NFA item, every 'Responsible Person' (co-trustee) on the trust must submit fingerprints and photographs to the Bureau of Alcohol, Tobacco, Firearms and Explosives, Detroit (or national branch). Because of this, many people draft their trust, buy the item as the sole trustee, wait for approval, and then use an amendment to add their spouse or children as co-trustees later.

Step 3: Handling Out-of-State Beneficiaries

If you leave an NFA item to a beneficiary in Ohio or Indiana, the transfer must comply with both federal law and the destination state's laws. The trust will instruct the successor trustee to file a Form 5320.5, FED, Bureau of Alcohol, Tobacco, Firearms and Explosives, Application for Tax-Exempt Transfer and Registration of Firearm under 26 U.S.C. § 5852(f) to legally transfer ownership tax-free to the heir.

Step 4: Dealing with Prohibited Persons

A major risk in estate planning is leaving a firearm to someone who is legally barred from owning one (e.g., a convicted felon or someone dishonorably discharged). If a beneficiary becomes a prohibited person under the Gun Control Act, 18 U.S.C. § 922, the trust must include a 'severability clause.' This legally prevents the trustee from distributing the firearm to them, instructing the trustee to either sell the item and give them the cash, or pass it to the next eligible beneficiary.

How Much Does it Cost in Michigan?

Owning NFA items requires legal planning and strict compliance with federal registration rules. Under 26 U.S.C. § 5811 and 26 U.S.C. § 5821, the statutory tax for transferring or making suppressors and SBRs is $0, while machine guns retain a $200 tax stamp.

How Long Does the Process Take?

Drafting the trust takes only a few days. However, once you submit your Form 5320.4, FED, Bureau of Alcohol, Tobacco, Firearms and Explosives, Application for Tax Paid Transfer and Registration of Firearm to purchase the item, the federal wait time begins. E-filed Form 4s for trusts with standardized documentation typically take approximately 25 to 35 days for ATF approval. You cannot take possession of the suppressor or SBR from your Michigan gun dealer until the approved registration arrives.

Frequently Asked Questions (FAQ)