The Ghost Dealer:
- Drew McDermott
- 10 minutes ago
- 4 min read
Why Your Estate Buyer Might Be Breaking ATF Rules
In the world of estate liquidation, most "buy-out" experts are pros at valuing mid-century furniture and vintage jewelry. But when the inventory includes firearms, those same pros often unwittingly step into a federal minefield. For an executor, hiring an unlicensed estate buyer to handle guns doesn't just put the buyer at risk, it creates a chain of liability that can lead straight back to the estate.
The Line They Don’t Know They Crossed
The moment an estate buyer performs certain actions without a Federal Firearms License (FFL), they are no longer "liquidating contents", they are potentially acting as an unlicensed dealer. This is not an opinion; it is a direct interpretation of how the ATF enforces the Gun Control Act of 1968 (GCA).
They have likely crossed the line if they:
Purchase a house contents lot that includes guns as part of a buyout for resale.
Transport guns off the property to a warehouse or different sale location.
List guns for sale on Unlicensed Online Estate Auction Platforms or National Franchise Estate Portals.
“Hold onto them” while figuring out what to do next.
What an Unlicensed Person Cannot Do
Under the GCA and ATF enforcement guidance, an unlicensed estate buyer may NOT:
Take ownership of firearms for resale.
Remove firearms from the property to store at their own shop, warehouse, or home.
List firearms for sale on estate auction platforms.
Consign firearms for sale or broker a transaction for a fee.
Transfer firearms to buyers or ship them to out-of-state recipients.
Repeatedly handle estates where firearms are present. This pattern establishes you as being “engaged in the business”, a federal felony when done without a license.
Why "I Bought the Whole House" Is Not a Defense
Many estate buyers assume that if they bought the entire contents of a home, the guns are now their personal property. Federal law does not see it that way. Firearms are regulated items that cannot enter commerce through an unlicensed party. They are not treated like furniture, tools, or antiques.
Scenario 1: The "Transport" Trap
Many estate buyers offer to "clear the house," which includes loading firearms into their van and moving them to a warehouse or a different sale location.
The Legal Reality: Under 18 U.S.C. § 922(a)(1)(A), it is unlawful for any person except a licensed dealer to engage in the business of dealing in firearms. If an estate buyer who does not hold a Federal Firearms License (FFL) takes possession of guns to sell them for profit, they are potentially "engaging in the business". Furthermore, moving NFA items (suppressors, SBRs) across state lines or without proper authorization is a felony.
Scenario 2: The "Online Broker" Illusion
We often see estate companies list guns on their own websites or third-party auction sites, collecting the money directly and then "paying out" the estate.
The Legal Reality: The ATF is clear: if you are a person who devotes time, attention, and labor to dealing in firearms as a regular course of trade or business with the principal objective of livelihood and profit, you must have an FFL. Even if the estate still "technically" owns the guns, the act of listing, marketing, and collecting payment as a third party constitutes dealing.
Scenario 3: The "FFL Transfer" Loophole (That Isn't)
Some buyers believe they are safe if they sell the gun online but have a local gun shop "handle the paperwork" for the final transfer.
The Legal Reality: This is one of the most common misconceptions. The unlicensed estate buyer has already engaged in the illegal act of "dealing" by brokering the sale and taking the money. The fact that an FFL handles the final background check does not "cure" the illegal unlicensed dealing that happened beforehand.
Scenario 4: The "I’m Just a Broker" Defense
The phrase "I'm only brokering the sale" has no standing in federal firearm law.
The Legal Reality: There is no "broker" status for unlicensed individuals. You are either the owner selling a personal item or you are an unlicensed dealer. If an estate buyer takes a commission or a fee to facilitate the sale of firearms they do not own, they are acting as a dealer without a license.
Conclusion:
Federal law is specifically concerned with those who repetitively purchase or facilitate the sale of firearms for profit without the oversight of a background check system.
Our mission at MDRF is to support the rule of law and the safety of the Saint Louis community. We believe that by educating our peers and the public on federal compliance, we help prevent the accidental 'leak' of unsecured firearms into our neighborhoods.
Disclaimer & Compliance Notice: MDRF Enterprises LLC is a licensed Federal Firearms Licensee (FFL) and Special Occupational Taxpayer (SOT). Drew McDermott is not an attorney, and the information provided in this post does not constitute legal advice. Firearm laws are subject to frequent change and vary significantly by jurisdiction. This post is provided for general educational purposes based on 18 U.S.C. § 921 and the ATF's 2024 "Engaged in the Business" Final Rule. and does not constitute legal advice.
Missouri Local Notice: This guidance is specifically tailored for fiduciaries and estate professionals operating in the State of Missouri. If you are an executor or legal professional dealing with firearms in a different state, please consult with a qualified local attorney. Possession or transport of regulated items by unauthorized parties may result in severe criminal penalties.