A gun trust—also known an NFA trust (National Firearms Act)—is a revocable trust created to hold title to or ownership of firearms. A gun trust is organized under the laws of the state indicated in the trust agreement—which is usually the residence of the person creating the trust—also known as the grantor or settlor.

A gun trust is an independent legal entity and is the legal owner of the guns transferred to the trust or purchased by the trust. The trust agreement should name a trustee (person or entity) to manage the trust for the beneficiaries of the trust (often the grantor’s heirs). The trustee is often the grantor during the grantor’s lifetime.

A gun trust is revocable, and the grantor can revoke it or make changes to the trust agreement at any time before the grantor’s death. But at the grantor’s death the trust become irrevocable and a successor trustee (named in the trust) manages the trust for the individuals or entities named as beneficiaries.

Gun trusts are also referred to as NFA trusts because they are often created to own firearms subject to Title II of the federal National Firearms Act—including short-barreled rifles, short-barreled shotguns, machine guns, and suppressors. The definition of firearms subject to the NFA is in the United States Code (federal statutes) at 26 U.S.C. §5845.

A well-written gun trust has special rules and provisions to ensure the trustee and the beneficiaries do not violate the NFA, as there are serious potential consequences to violating federal gun laws—whether intentionally or accidentally. Violations may result in loss of the firearms, a prison term of up to 10 years, and fines up to $10,000.

In South Carolina, a gun trust, also known as an NFA trust, is a legal instrument designed to hold ownership of firearms. It is established under South Carolina state law, typically reflecting the residence of the person who creates the trust, known as the grantor or settlor. The trust itself is considered an independent legal entity and becomes the legal owner of the firearms that are transferred to or purchased by it. The trust agreement names a trustee to manage the trust assets for the benefit of the designated beneficiaries, who are often the grantor's heirs. The grantor usually serves as the trustee during their lifetime and has the power to revoke or amend the trust until their death, at which point the trust becomes irrevocable, and a successor trustee takes over management. Gun trusts are particularly relevant for holding firearms that fall under Title II of the National Firearms Act (NFA), such as short-barreled rifles, short-barreled shotguns, machine guns, and suppressors. These trusts include specific provisions to ensure compliance with the NFA to avoid severe penalties, including forfeiture of firearms, imprisonment, and fines. It is crucial for trustees and beneficiaries to adhere to both federal and state regulations regarding the ownership and transfer of NFA-regulated firearms.