Texas Trust Cannot Possess Firearms Under Federal Law

A trust under Texas law cannot possess machine guns and similar weapons because trusts are not considered separate legal entities, but fiduciary relationships which violate federal law

Hollis v. Lynch, 2016 BL 211710, 5th Cir., No. 15-10803, 6/30/16.

   A Fifth Circuit court joined the Third Circuit in holding that a trust under Texas law cannot possess weapons that are in violation of federal law. The plaintiff argues that federal statutes prevent “persons” from obtaining or passing certain weapons and because it is the trust that owns the weapons, it is exempt from this law. The court found that the "argument strains common sense and misunderstands trust law.” The court noted that in some jurisdictions, trusts have a separate legal existence, but not in Texas where the case originated. There, a trust is not a legal entity but a fiduciary relationship between the trustee and the trust property.

   Additionally, the court rejected any Second Amendment argument because the right to bear arms does not extend to “dangerous and unusual” weapons.

https://www.bloomberglaw.com/public/desktop/document/Hollis_v_Lynch_No_1510803_2016_BL_211710_5th_Cir_June_30_2016_Cou?1467841848