Congress enacted the National Firearms Act (“NFA”) in 1934, during the era of Prohibition and organized crime. The law targeted weapons associated at the time with gangsters and violent crime, including machine guns, short-barreled rifles and shotguns, and suppressors.
Rather than banning these items outright, Congress relied on its constitutional taxing power. The NFA imposed a $200 tax on making or transferring covered firearms, a prohibitively expensive amount in 1934, and required them to be registered with the federal government.
That eventually developed into the NFA system we know today, administered by the Bureau of Alcohol, Tobacco, Firearms and Explosives (“ATF”). Traditionally, acquiring an NFA item required ATF approval, registration, fingerprints, and payment of the $200 tax.
Those rules also created some practical problems. If an NFA item was registered to an individual, allowing someone else to possess or control it could, depending on the circumstances, amount to an unlawful transfer or possession and expose both parties to serious federal penalties.
This is one reason gun trusts became popular. Instead of registering the NFA item to one person, the trust could own it. Multiple people could serve as trustees and have authority to possess and manage the trust’s firearms. The trust also provided continuity if the person who created it later died or became incapacitated.
That structure was particularly useful in Texas. Texas generally does not require registration of ordinary firearms, so federal NFA regulation was historically one of the main reasons a Texas gun owner might need a specialized firearms trust.
Recently, however, Congress made a change that called much of that system into question.
In 2025, Congress reduced the NFA making and transfer taxes on suppressors, short-barreled rifles, short-barreled shotguns, and certain other firearms from $200 to zero.
That created an obvious constitutional question: If the NFA registration system exists to administer a tax, what happens when there is no longer a tax to collect?
What Did the Texas Court Change?
On August 5, 2026, a federal district court in Texas concluded that significant portions of the NFA could no longer be justified under Congress’s taxing power once the underlying taxes were reduced to zero.
The court prohibited the federal government from enforcing the challenged requirements against the plaintiffs and certain members and customers covered by the court’s order. The injunction took effect August 13 after the government did not seek appellate relief during the court’s seven-day stay.
Some purchasers covered by the injunction have already been able to acquire suppressors without going through the traditional NFA registration process.
But the decision did not strike down the NFA nationwide. Whether a particular person or transaction is protected depends on the scope of the court’s injunction. And most suppressors already in circulation remain registered under the NFA; the ruling did not automatically remove them from the federal registry.
Still, the decision strikes at the regulatory system that originally made gun trusts so attractive.
So, are gun trusts still useful for Texas gun owners?
Do We Still Need Gun Trusts in Texas?
For the average Texas gun owner, perhaps not.
Someone who owns a few ordinary rifles, shotguns, or handguns and simply wants them to pass to family members may be adequately served by a conventional will or revocable trust. Texas law generally makes ownership and transfer of ordinary firearms relatively straightforward.
The analysis changes for someone who owns suppressors, other specially regulated firearms, a valuable collection, or firearms intended to stay in the family for generations.
A gun trust can still provide a clear ownership and succession structure. It can establish who may possess and manage the firearms, who takes over if the owner becomes incapacitated, and what happens to the collection after the owner’s death.
For serious collectors, those estate-planning benefits can be significant. A spouse or executor may have no idea which firearms are particularly valuable or subject to special rules. A gun trust can put a knowledgeable successor trustee in charge and provide instructions for keeping, selling, or distributing the collection. It can also prevent a firearm from being distributed to a beneficiary who cannot legally possess it.
And as new suppressors potentially enter circulation outside the traditional NFA registry, having a clear private ownership and succession structure may become more important, not less.
The recent federal court decision therefore does not necessarily make gun trusts obsolete. Instead, it may change why we use them.
For many Texans with ordinary firearms, a separate gun trust may be unnecessary. But for owners of suppressors, specially regulated firearms, substantial collections, or firearms intended to remain in the family, a gun trust can still provide a useful ownership and estate-planning structure.
The focus may simply be shifting away from navigating a $200 federal tax and toward a more practical question: What is the best way to own, manage, and ultimately pass down these firearms as the law continues to change?
For many serious Texas gun owners, a gun trust may still be a useful answer.
Have Questions About a Gun Trust?
If you own suppressors, other regulated firearms, or a significant firearm collection, we can help you determine whether a gun trust still makes sense for your estate plan. Contact our office to schedule a consultation and discuss the best way to own, manage, and pass down your firearms under current Texas and federal law.
This article is for general informational purposes only and does not constitute legal advice. Federal and state firearm laws are subject to change, and the effect of the recent injunction depends on the particular owner and transaction.