Do You Still Need a Gun Trust After the Tax Stamp Change?

The recent passing of the One Big, Beautiful Bill (OBBB) under Section 70436, will remove the transfer and making tax for suppressors, short-barreled rifles (SBR’s), short-barreled shotguns (SBS’s) and any other weapons (AOW’s).  Machine guns and destructive devices will still be subject to the $200 tax stamp.  This should be going into effect January 2026 and the exact timeline is still unknown.  Potentially January 1, 2026 most everyday NFA purchases won’t require the $200 transfer and making tax.  But, do you still need a gun trust?

What is a Gun Trust? 

A gun trust is a legal entity that can be used to own NFA firearms and non-NFA firearms.  Unlike, individual ownership of NFA firearms, a gun trust can allow you to add other responsible persons who can possess, transport, store and use the the NFA firearms without the supervision of the settlor of the gun trust.  Beneficiaries will also be able to inherit the firearms within the gun trust easier versus if the NFA firearms were owned as an individual, e.g. gun trusts will be able to skip probate, unlike individual ownership. 

How the Tax Stamp Changes Affects Gun Trusts

The removal of the $200 tax stamp for most of the NFA firearms is a big deal, but it doesn’t eliminate the ATF tax stamp application process and it doesn’t eliminate the usefulness of gun trusts. 

What’s Changed

Cost Savings:  When the changes go into effect, you won’t need to budget for a $200 tax stamp on top of the NFA firearm.  For example, suppressors can cost on average $400 to $1,000.  

Approval Timeline:  The removal of the $200 transfer and making tax can lessen the burden of entry for many new buyers.  With the influx of new buyers or makers, the approval timelines may suffer and unfortunately increase.  

What Hasn’t Changed

Possession Rules:  If you are purchasing as an individual, you would still need to supervise the use of the NFA firearms, be in charge of the storage, etc.  The gun trust will still allow the trust to have co-trustees/responsible that are able to possess, transport, store and use the NFA firearms without the settlor’s supervision. 
Inheritance Planning: Without a gun trust, NFA firearms still would be subject to probate, potentially creating complications for the heirs when the individual owner passes away.

Future-Proofing:  Laws can change again but a gun trust still will provide flexibility to accommodate future gun laws if they change.  
Privacy:  Gun trusts still can help you keep your firearms private from the ATF, if your gun trust uses assignment sheets and not schedules. 

Who Still Benefits from a Gun trust?

Families:  If you are want your spouse, children friends, close family, etc to be able to legally use the NFA firearms, without your supervision, then a gun trust will be very helpful.

Collectors:  People who have multiple NFA firearms or title 1 firearms can benefit from the streamlined estate planning.

Business or shooting partners:  Gun trusts allow shared use of your NFA firearms without supervision from the settlor.

Bottom Line

The tax stamp tax to transfer or make an NFA firearm is great news for gun owners across the country.  The new law will remove a major financial obstacle and makes buying suppressors or SBR’s easier than ever.  But the utility of a gun trust goes beyond just the $200 tax.  If your NFA ownership is simple - just one suppressor - then you may not need a gun trust.  But if you value shared use, inheritance planning and legal flexibility, a gun trust is still a smart investment.