Colorado Firearm Background Check Requirement For Trusts

Colorado Firearm Background Check Requirement For Trusts

1. There is an open question regarding whether a settlor of a revocable trust must comply with the Colorado background check statute (18-12-112) when assigning the settlor’s existing firearms to the settlor’s revocable trust. Personally, I think it is silly to take that position. However, we have no guidance from the state attorney general, no case law on the subject, and the statute specifically mentions transfers to trusts. Therefore, the conservative approach is to comply with the statute — if you can.  Word from clients is they have a hard time finding an FFL who will run a background check on an individual in their capacity as trustee.

2. The required background check is an ATF Form 4473 background check submitted by an FFL (Federal Firearms Licensed dealer) to CBI as if it was a sale. As part of the process, CBI transmits to the dealer approval of the transfer. It is more than just a background check by CBI. You cannot go directly to CBI and get the required background check because the check is specific to the firearm(s) being assigned to the trust. You must go through an FFL using Form 4473.

3. More than 1 firearm can be listed on a single Form 4473. There are additional blanks on the form. The instructions explain how to run a check on more guns than blanks on the form.  (Instructions Section A, Questions 1-6).

4. The dealer will charge for the background check. For example, $50 for the first gun and $25 for each additional gun. The statute says the fee cannot exceed $10. Not sure the dealers care because they can decide it is not worth their time.

5. I am told that many firearms dealers will not run a background check on a settlor assigning the settlor’s gun(s) to a revocable trust. His consultant told him not to because it could throw up a red flag. I have heard of others that will run the check. The point is, the FFL is not required to help.

6. Co-trustees do need a 4473 background check. The co-trustee should get the Form 4473 background check before the settlor’s firearms are assigned to the trust. The assignment must occur within 30 calendar days of approval by CBI.

7. Form 4473 is set up for individuals. While trusts are not specifically mentioned in the instructions, we use the instructions for a corporation, company, association, partnership, or other such business entity. On the back of Form 4473, Section B, 2nd paragraph. This is when the Sworn Statement for Primary Trustee is used. While it has gotten better since 2013, an FFL left to his/her own without instruction will possibly run the check incorrectly (as if for an individual and not wanting to include the Sworn Statement as part of the record). For that reason, we advise to sign Form 4473 “Your Name, Trustee”.

8. Get a copy of the approval specific to the gun. This has traditionally been a problem area. FFLs are not used to giving that information to the customer. FFLs are very wary of doing something they do not ordinarily do for fear of losing their license. If nothing else, take a picture of the approval with your phone.