Aircraft Trust CompaniesFAA Aircraft Owner Trust

How to Manage When Your Aircraft Trustee Resigns

By October 27, 2018 December 3rd, 2018 No Comments

Regulations

The aircraft purchase and registration is not something an owner can do on their own. It is already discussed before that the trustee is needed to perform the entire complicated process of aircraft purchase and its registration. There are many other reasons why people need aircraft trust companies. There are some lenders if you follow who secure their loans with the FAA registered airplanes and some use the FAA aircraft owner trust for estate planning. The common cause of this is the registration system of the FAA is based on owner who has to be a part of the U.S., either a citizen or an entity of the U.S. The people from other countries can have an airplane registered under the FAA, but there are certain limitations for them and all are for the security of the U.S.

Did you ever think how the scenario would change if you get a letter from your trustee that they are quitting their role? If they wouldn’t be responsible for the carry on and take care of all the formalities of your airplane registry, would you lose your registration facility? The scenario is explained here.

FAA registration

If you are not a U.S. citizen but willing to keep your airplane registered under the FAA, the situation would be little complicated if the trustee resigns. When your trustee resigns, you will need a successor trustee. You have to be sure if the change of the trustee would violate the terms of finance. If so, you have to know the tenure to prevent this situation. If there is no such thing, you have to contact the lender and you have to work jointly to agree on the successor trustee. The successor trustee will need to know about you, that is known as ‘Know Your Customer’ (Patriot Act).

If the things go well until now, the new bonding of you and your trustee should be documented. You have to show the resignation of your existing trustee and then, the agreement between the successor trustee and the existing one would be signed and submitted to the FAA. There will be other amendments including the security package that is not limited to the FAA registration and the changes, UCC filing amendments, other registrations and discharges.

Many people think that changing a trustee is easier when you are buying a new airplane. It is complicated to undergo the change during the ownership of the aircraft. The change may create an impact on the citizenship, financial status, aircraft registration and many others. The professional FAA aircraft owner trust can be able to assess and handle the situation well. You can rely on us at Aviation Trust Company i.e. one of the reliable aircraft trust companies for getting your back in your crisis pertaining to the airplane ownership.

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